Source: https://www.ecode360.com/28056078
Timestamp: 2019-12-14 17:04:56
Document Index: 421454510

Matched Legal Cases: ['§ 894', '§ 894', '§ 894', '§ 894', '§ 894', '§ 894', '§ 894', '§ 894']

City of Coldwater, MI Property Tax Exemptions for Laura's Place Apartments
§ 894.01 Findings; purpose.
§ 894.02 Definitions.
§ 894.03 Class of housing developments.
§ 894.04 Establishment of annual service charge.
§ 894.05 Limitation on the payment of annual service charge.
§ 894.06 Contractual effect of chapter.
§ 894.07 Payment of service charge.
§ 894.08 Duration of chapter.
Chapter 894 Property Tax Exemptions for Laura's Place Apartments
[Ord. No. 621, passed 10-9-2000]
The City hereby acknowledges that Laura's Place Limited Dividend Housing Association Limited Partnership (the "sponsor") has offered, subject to receipt of an allocation under the Low Income Housing Tax Credit (LIHTC) program, to erect, own and operate a housing development, identified as Laura's Place Apartments, on certain property located in the City, to serve persons of low income, and that the sponsor has offered to pay the City on account of this housing development an annual service charge for public services in lieu of all taxes.
ACT — Means the State Housing Development Authority Act, being Act 346 of the Public Act of 1966, as amended.
CONTRACT RENTS — Shall be as defined by the U.S. Department of Housing and Urban Development in regulations promulgated pursuant to the U.S. Housing Act of 1937, as amended.
MORTGAGE LOAN — Means a loan to be made by the Authority to the sponsor for the construction and/or permanent financing of the housing development.
SPONSOR — Means persons or entities which have applied to the Authority for an allocation under the Low Income Housing Tax Credit Program to finance a housing development, including the Branch County Coalition Against Domestic Violence.
It is hereby 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 family units which are financed or assisted pursuant to the Act. It is further determined that Laura's Place Apartments are of this class.
The housing development identified as Laura's Place Apartments and the property on which it shall be constructed shall be exempt from all property taxes from and after the commencement of construction. The City, 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 chapter and the qualification of the housing development for exemption from all property taxes and a payment in lieu of taxes as established in this chapter, and in consideration of the sponsor's offer, subject to receipt of an allocation under the LIHTC Program, 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 equal to 4% of the difference between the annual shelter rents actually collected and utilities.
Notwithstanding Section 894.04, the service charge to be paid each year in lieu of taxes for the part of the housing development which is tax exempt and which is occupied by other than low income persons or families, shall be equal to the full amount of the taxes which would be paid on that portion of the housing development if the housing development were not tax exempt.
This chapter shall remain in effect and shall not terminate for a period of 20 years, so long as the Authority's mortgage remains outstanding and unpaid or the Authority has any interest in the property, provided that construction of the housing development commences within one year from the effective date of this chapter.