[HISTORY: Adopted by the Village Council of the Village of Spring Lake as indicated in article histories. Amendments noted where applicable.]
Special assessments — See Ch. 307.
[Adopted 5-20-2013 by Ord. No. 333 (Ch. 67, Art. I, of the 2000 Code of Ordinances)]
This article shall be known and cited as the "2013 Tax Exemption Ordinance."
It is acknowledged that it is a proper public purpose of the State of Michigan and its political subdivisions to provide housing for elderly citizens of low or moderate income and to encourage the development of such housing by providing for a service charge in lieu of property taxes in accordance with the State Housing Development Authority Act of 1966 [1966 PA 346, as amended, MCLA § 125.1401 et seq., MSA § 116.114(1) et seq.]. The Village is authorized by this Act to establish or change the service charge to be paid in lieu of taxes by any or all classes of housing exempt from taxation under this Act at any amount it chooses not to exceed the taxes that would be paid but for this Act. It is further acknowledged that such housing for elderly persons of low or moderate income (as defined in this article) is a public necessity, and as the Village will be benefitted and improved by such housing, the encouragement of the same by providing certain real estate tax exemption for such housing is a valid public purpose; further, that the continuance of the provisions for this article for tax exemption and the service charge in lieu of taxes during the period contemplated in this article are essential to the determination of economic feasibility of housing developments which are constructed and financed in reliance on such tax exemption.
The Village acknowledges that Mill Point Senior Housing Limited Dividend Housing Association, a Michigan limited dividend housing association limited partnership, which consists of Seybert New Limited Partnership and PBN Park, LLC (the "sponsor"), has offered, subject to receipt of a mortgage loan and/or an allocation of low-income housing tax credits from the Michigan State Housing Development Authority, to erect, own and operate a housing development identified as "Mill Point Senior Housing," on certain property described on Exhibit A attached hereto, all being in the Village, to serve elderly persons of low or moderate income. The sponsor has offered to pay the Village on account of this housing development an annual service charge for public services in lieu of all taxes consistent with the provisions of this article.
Editor's Note: Exhibit A is not set out at length herein, but is on file and available for inspection in the Village offices.
As used in this article, the following terms shall have the meanings indicated:
- The State Housing Development Authority Act, being Public Act 346 of 1966 of the State of Michigan, as amended.
- ANNUAL SHELTER RENT
- The total collections during an agreed annual period from (or in the case of housing assisted under Section 8 of the United States Housing Act of 1937, as amended, contract rents paid on behalf of), all occupants of a housing development representing rent or occupancy charges, exclusive of charges for gas, electricity, heat, refuse removal, or other utilities furnished to the occupants.
- The Michigan State Housing Development Authority.
- CONTRACT RENT
- Rental rates as defined by the United States Department of Housing and Urban Development in regulations promulgated pursuant to Section 8 of the United States Housing Act of 1937, as amended by the Housing Community Development Act of 1974.
- A single person who is 55 years of age or older or a household in which at least one member is 55 years of age or older and all other members are 50 years of age or older.
- HOUSING DEVELOPMENT
- A development which contains a significant element of housing for elderly persons of low or moderate income and such elements of other housing, commercial, recreational, industrial, communal and educational facilities as the Authority determines improve the quality of the development as it relates to housing for elderly persons of low or moderate income.
- The United States Department of Housing and Urban Development acting through its Federal Housing Administration divisions.
- LOW OR MODERATE INCOME
- Families and persons who cannot afford to pay the amounts at which private enterprise, without federally aided mortgages or loans from the Authority, is providing a substantial supply of decent, safe, and sanitary housing and to fall within income limitations set in the Act or by the Authority and its rules. Among low or moderate income persons, preference shall be given to the elderly and those displaced by urban renewal, slump clearance or the governmental action.
- MORTGAGE LOAN
- A loan to be made by the Authority and/or insured by HUD to the sponsor for the construction and/or permanent financing of the housing development.
- Person(s) or entities which have applied to the Authority and/or HUD for a mortgage loan to finance a housing development, and/or applied to the Authority for a reservation of low-income housing tax credits for specifically the housing development known as "Mill Point Senior Housing Limited Dividend Housing Associates," a Michigan limited dividend housing association limited partnership, which consists of Seybert New Limited Partnership and PBN Park, LLC, although sponsor may assign its interest in the housing development to any successor entity that is eligible under the Act.
- Fuel, water, sanitary sewer service, refuse removal, and/or electrical service which are paid by the housing development for its common areas.
Editor's Note: See MCLA § 125.1401 et seq.
It is determined that the class of housing developments to which the tax exemption shall apply and for which a service charge shall be paid in lieu of such taxes shall be elderly housing, which is financed or assisted pursuant to the Act. It is further determined that the Mill Point Senior Housing Development is of this class. Notwithstanding the provisions of Section 15(a) of the Act to the contrary, the Village will hereby provide tax exemptions and accept payments in lieu thereof as described in this article only to the project known as "Mill Point Senior Housing Development." The Village shall not provide tax exemptions to any other multifamily, low income or elderly housing projects financed pursuant to the Act or this article.
[Amended 3-17-2014 by Ord. No. 337]
The Housing Development identified as "Mill Point Senior Housing" and the property on which it shall be constructed shall be exempt from all property taxes from and after the commencement of construction. The Village, acknowledging that the sponsor and the Authority have established the economic feasibility of the housing development in reliance upon the enactment and continuing effect of this article and the qualification of the housing development for exemption from all property taxes and a payment in lieu of taxes as established in this article, and in consideration of the sponsor's offer, subject to receipt of an allocation of low-income housing tax credits from the Authority, and/or receipt of a mortgage loan from the Authority and/or a loan insured by HUD, to construct, own and operate the housing development, agrees to accept payment of an annual service charge for public services in lieu of all property taxes. The annual service charge shall be as set forth in Ordinance No. 239 adopted by Spring Lake Township, Ottawa County, State of Michigan. The annual service charge shall be disbursed in accordance with the terms of that ordinance.
The annual service charge to be paid in lieu of taxes for any part of the housing development that is tax exempt and that is occupied by persons of low to moderate income shall not exceed an amount equal to the taxes that would be paid but for the tax exemption granted under this article.
Notwithstanding the provisions of Section 15(a)(5) of the Act to the contrary, a contract between the Village and the sponsor with the Authority and/or HUD as third party beneficiaries under the contract, to provide tax exemption and accept payments in lieu of taxes, as previously described, is effectuated by enactment of this article.
The annual service charge in lieu of taxes as determined under the article shall be payable in the same manner as general property taxes are payable to the Village except that the annual payment shall be paid on or before August 15 of each year. On or before June 15 of each year, the sponsor shall file with the Village an audit showing the number of units in Mill Point Senior Housing occupied by elderly persons of low or moderate income as of December 31 of the previous year. The Village shall invoice the sponsor no later than July 1 of each year for the service charge due on August 15. On or before March 15 of each year the sponsor shall file with the Village documentation and accounting records showing the rent or occupancy charges received from those units considered to be occupied by elderly persons of low or moderate income during the previous year. Any additional service charge shall be payable by the sponsor on demand. Any overpayment of service charge shall be promptly refunded to the sponsor by the Village.
The construction of the housing development must commence within three years from the effective date of the adoption of this article, or the provisions of this article shall terminate according to its own terms. If constructed, the provisions of this article shall remain in effect and shall not terminate so long as the housing development remains subject to income and rent restrictions pursuant to Section 42 of the Internal Revenue Code of 1986, as amended; and the Authority or HUD has any interest in the property.
Annual service charges payable pursuant to this article shall be a lien on the housing development and, if delinquent, shall be collected and enforced in the same manner as general property taxes.