This article shall be known and cited as the State Housing Authority
Tax Exemption Ordinance, and it shall be deemed sufficient in any
action for enforcement of the provisions hereof, to define same by
such title and reference to the number hereof.
The purpose of this article is declared as follows:
A. To declare the public necessity of the assistance of the City of
Lapeer in developing and preserving housing for its elderly citizens
of low and moderate income;
B. To provide a binding agreement with the "owner" or "mortgagor" as
defined herein establishing terms and conditions for the continuing
status of tax exemption to the housing development;
C. To establish, by ordinance, real estate tax exemption status for
elderly citizens of low and moderate income, dwelling within the "housing
development," as defined herein, under Act 346 of the Public Acts
of 1966, as amended ("Act 346");
D. To establish an annual service charge for public services in lieu
of all taxes to be paid by the owner to the City of Lapeer, and distribute
pursuant to Act 346.
The following definitions shall apply:
ACT
The State Housing Development Authority Act, Act 346 of the
Public Acts of 1966, as amended, cited at MCLA § 125.1401.
AUTHORITY
The State Housing Development Authority, under Act 346.
ELDERLY
A family where the head of the household is 62 years of age
or older, or a single person who is 62 years of age or older, or in
the event project based Section 8 subsidies are no longer available
to the project, it shall mean 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 and all other members are 50 years of age or older.
FEDERALLY AIDED MORTGAGE
A below-market interest rate mortgage insured or purchased
or held by the Secretary of the Department of Housing and Urban Development
(HUD); or a market interest rate mortgage insured by the Secretary
of Housing and Urban Development, and augmented by a program of rent
supplements; or a mortgage receiving benefits under other federal
law designated specifically to develop low and moderate-income housing,
and consistent with the provisions of this Act.
HOUSING DEVELOPMENT
A development which contains a significant element of housing
for 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 persons of low or moderate
income and in which funds from the authority's note and bond
financing are used for no elements of such development, other than
housing projects for low-income or moderate-income persons.
LOW-INCOME OR MODERATE-INCOME PERSONS
Families and persons who cannot afford to pay the amounts
at which private enterprises, without federally aided mortgages or
loans from the authority are providing a substantial supply of decent,
safe, and sanitary housing, and who fall within income limitations
set by the authority in its rules. Among low-income or moderate-income
persons, preference shall be given to the elderly, and those displaced
by urban renewal, slum clearance, or other governmental action.
OWNER or MORTGAGOR
Silver Maple Village 2009 Limited Dividend Housing Association,
LLC, a Michigan limited-liability company, and its heirs, successors
and assigns.
PROJECT
A certain housing development to be acquired and renovated
by the owner, identified as the "elderly building," which consists
of 100 one- and two-bedroom apartments on Dewey Boulevard, which:
A.
Shall be financed by a federally aided mortgage or loan made
by the authority;
B.
Dwelling units shall be occupied exclusively by elderly citizens
of low and moderate incomes;
C.
Legal description. Part of the N.E. 1/4 of Section 6, T. 7 N.,
R. 10 E., CITY OF LAPEER, LAPEER COUNTY, MICHIGAN, being described
as: Beginning at a point, said point being distant N. 87° 47'
10" E. 679.62 feet along the North Section Line of said Section 6,
said line also being the Center Line of Oregon Street and S. 02°
14' 37" E. 1066.86 feet from the N. 1/4 corner of said Section
6; thence from said point of beginning N. 87° 15' 40" E.
300.00 feet; thence N. 02° 14' 37" W. 150.00 feet; thence
N. 87° 15' 40" E. 415.00 feet; thence N. 48° 08'
50" E. 84.01 feet; thence S. 41° 51' 10" E. 287.51 feet;
thence S. 49° 06' 25" E. 126.50 feet; thence S. 42° 30'
14" W. 77.40 feet; thence 97.96 feet along the arc of a curve to the
left, said curve having a radius of 123.68 feet, a central angle of
45° 22' 44", a chord length of 95.42 feet and a chord bearing
of S. 19° 48' 51" W.; thence S. 87° 15' 40" W. 965.02
feet; thence N. 02° 14' 37" W. 270.00 feet to the point of
beginning, containing 7.94 acres more or less and subject to easements
of record. The above 7.94 acres, as described is that portion of the
total 29.94 acre project set aside for the three-story senior citizens
building requiring tax abatement.
UTILITIES
Fuel, water, sanitary sewer service and/or electrical service
which are paid by the development.
Notwithstanding the provisions of Section 15a(5) of the Act to the contrary, a contract between the City and the "owner"
with the Authority and HUD as third-party beneficiaries thereunder,
to provide tax exemption and accept payments in lieu thereof as previously
described is effected by enactment of this article.
The City, acknowledging that the owner 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 qualifications of the housing development for exemption from
all property taxes and a payment in lieu of taxes as established herein,
and in consideration of the owner's offer, subject to receipt
of a mortgage loan from the Authority, to acquire, renovate, own,
and operate said Housing Development, hereby agrees to accept payment
of an annual service charge for public services in lieu of all property
taxes.
These provisions shall become fully operative upon notice to
the Assessor for the City by the owner or mortgagor, its successors
or assigns of the certification of tax exemption by the authority
for the project in accordance with the provisions of the Act.
This article shall remain in effect for the period of time in
which the project is encumbered by an outstanding federally aided,
or authority-aided mortgage, or so long as the authority has any legal
interest in the property; provided that acquisition and renovation
of the housing development commences within one year from the effective
date of this article.
If any section, clause, or phrase, or portion thereof in this
article is, for any reason, held invalid or unconstitutional by any
court of competent jurisdiction, such portion shall be deemed a separate,
distinct, and independent portion of this article, and such holding
shall not affect the validity of the remaining portions of this article.
This article following publication in accordance with the law
shall become effective on the date the project is acquired by the
owner.