City Ordinance Chapter 082 - Taxation

View the PDF version Google Docs PDF Viewer

                                                 TAXATION                                             § 82-51

  (3)   Housing projects in which at least 70          of this act. The service charge to be paid in lieu
        percent of the total construction or           of taxes by any housing project exempt under
        rehabilitation costs of the housing project    this division shall be determined as follows:
        are funded by the net proceeds from an
                                                            (1)   Amount. Except as provided in subsec-
        authority-aided mortgage loan, but only
                                                                  tion (2)(h) of this section, the service
        where the authority aid consists of the
                                                                  charge shall be in an amount no less
        allocation of tax credits from the author-
                                                                  than one percent nor more than 20 percent
        ity to the applicant for the exemption.
                                                                  of the contract rents charged for the total
  (4)   Housing projects which satisfy all of the                 of all units in the exempt housing project,
        following criteria:                                       whether the units are occupied or not
                                                                  and whether or not the rents are paid. In
        a.    The project had previously received                 no event shall the service charge exceed
              a project-based Section 8 contract                  the ad valorem real property taxes which
              which is scheduled to expire within                 would be paid for the housing project if it
              one year;                                           were not exempt.
        b.    The city determines that the HAP              (2)   Standards for determining the amount of
              contract renewal is in the best inter-              the payment in lieu of taxes. In determin-
              est of the city and the residents of                ing the amount of service charge (not less
              project;                                            than the minimum) which will be paid
                                                                  the city for a housing project exempt
        c.    The project had previously received                 under this division the following standards
              tax exemption and a pilot from the                  shall guide the city. All criteria which
              city;                                               apply shall be considered to arrive at the
        d.    Within 27 months after the contract                 service charge:
              with the city pursuant to the terms                 a.   In the event the housing project or a
              hereof, the project receives a MSHDA                     substantial part thereof is located
              financing commitment, a HUD                              in a rehabilitated structure, for that
              insured financing commitment or a                        portion of the project found in the
              reservation of low income housing                        rehabilitated structure the city shall
              tax credits; and                                         establish a lower service charge.
        e.   Renovations commence within 12                       b.   In the event the housing project is
             months after receipt of a MSHDA                           located in an area of the city which
             financing commitment, a HUD                               is part of a tax increment district
             insured financing commitment or a                         and removes taxable property from
             reservation of low income housing                         the tax roll, the city shall establish
             tax credits.                                              a higher service charge.
(Code 1975, § 2-6(e); Code 2002, § 82-50; Ord. No.
                                                                  c.   The city shall consider the number
2303, § 1(82-50), 2-14-2012)
                                                                       of exempt units as compared to
                                                                       nonexempt units which are attached
Sec. 82-51. Payment in lieu of taxes; amount;                          or contiguous to the housing project,
            standards for determination.                               but which are developed simultane-
                                                                       ously with it by the same developer.
   The payments in lieu of taxes to be made by                         To the extent that nonexempt units,
housing projects exempt from ad valorem taxes                          including units calling for market
under this division are hereby established by the                      rents, are included in the develop-
city pursuant to section 15a of Public Act No.                         ment, the city shall consider lower-
346 of 1966 (MCL 125.1415a), without regard to                         ing the rate of the service charge on
the amounts otherwise set forth in such section                        the exempt units.

Supp. No. 9                                       CD82:5
§ 82-51                                      MUSKEGON CITY CODE

          d.   In the event the housing project is               property taxes which would otherwise be
               proximate to nonsubsidized and                    charged by tax bills normally issuing in
               nonexempt housing which is not                    the year of the city's determination.
               part of any project for which the         (Code 1975, § 2-6(f); Code 2002, § 82-51; Ord. No.
               developer of the exempt housing           2303, § 1(82-51), 2-14-2012; Ord. No. 2357, § 1,
               project is responsible, the city shall    3-14-2017; Ord. No 2395, § 1, 12-18-2018; Ord.
               establish a higher service charge.        No. 2423, § 1, 11-26-2019)
                                                            State law reference—Service charge authorized, MCL
          e.   In the event the housing project is       125.1415a(2).
               eligible for other property tax abate-
               ments or reductions of any kind, or       Sec. 82-52. Term of exemption.
               municipal benefits not generally
                                                            Except as provided in subsection (5) or (6) of
               available to residential properties,
                                                         this section, the exemption term shall begin on
               the city shall establish a higher
                                                         the tax day of the year in which a final certificate
               service charge.
                                                         of compliance or occupancy is issued by the city,
          f.   In the event the housing project          therefore affecting the taxes due in the following
               results in an increase in the need        year, and shall terminate on the happening of
               for public services such as water or      any of the following:
               sewer extensions, public transporta-          (1)   Refinancing of the authority-aided, or
               tion services, additional snow plow-                authority or HUD mortgage loan, except
               ing, police and fire services, or                   to convert from a construction to an end
               increased school populations, the                   loan.
               city shall establish a higher service
               charge.                                       (2)   Any violation or default under section
          g.   In the event the city determines
                                                             (3)   The day falling 25 years after the effec-
               that the housing project will result
                                                                   tive date of the contract for the exemp-
               in significantly increased traffic
                                                                   tion required by this division, or the
               generation or street or highway
                                                                   period determined by the contract,
               safety problems, the city shall
                                                                   whichever is shorter.
               establish a higher service charge.
                                                             (4)   For exemptions applicable to projects
          h.   For a project which meets the criteria              aimed at redeveloping existing multi-
               of section 82-50(4), the service charge             family residential housing projects, which
               may be continued in the amount the                  receive Michigan State Housing Develop-
               city had previously determined.                     ment Authority approval between October
                                                                   1, 2002 and December 1, 2002, the day
   (3)    Property or unit becoming ineligible. In                 falling 35 years after the effective date of
          the event any residential unit is found to               the contract for the exemption required
          be occupied by persons who are not eligible              by this division, or the period determined
          to occupy exempt units under this divi-                  by the contract, whichever is shorter.
          sion, the service charge for that unit,
          prorated, shall equal the general property         (5)   For projects which satisfy the criteria of
          taxes which would be payable (prorata)                   section 82-50(4), the tax exemption shall
          for that unit. In the event the city                     begin upon acquisition of the project by
          determines that more than 50 percent of                  the sponsor and shall extend until the
          the units in the housing project are                     final maturity of the authority-aided or
          occupied by such ineligible persons, then                federally-aided mortgage, whichever is
          the entire housing project shall be                      longer, but not to exceed 40 years from
          immediately liable for a service charge in               the closing. If the criteria of section
          an amount equal to the ad valorem                        82-50(4) are not met within two years of

Supp. No. 9                                         CD82:6

Top of Page