§ 12-40. Purpose.

It is acknowledged that it is a proper public purpose of the state and its political subdivisions to provide housing for its citizens of low 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, Public Act No. 346 of 1966 (MCL 125.1401 et seq.). The city is authorized by said act to establish or change the service charge to be paid in lieu of taxes by any and all classes of housing exempt from taxation under the act, at any amount it chooses, not to exceed the taxes that would be paid but for the act. It is further acknowledged that such housing for persons of low income is a public necessity, and as the city will be benefited and improved by such housing, the encouragement of the same by providing certain real estate tax exemption therefor is a valid purpose; further, that the continuance of the provisions of this article for tax exemption and the service charge in lieu of taxes during the periods hereinafter contemplated are essential to the determination of economic feasibility of housing developments which are constructed and financed in reliance thereon. The City of Cadillac Limited Dividend Housing Association (the sponsor) has offered, subject to receipt of a mortgage loan from the authority, to erect, own and operate a housing development identified as Harbor View, formerly known as Cadillac Lakeside Towers, on certain property located at Holly Road and South Street in the city to serve persons of low income, and that the sponsor has offered to pay the city on account of said development an annual service charge for public services in lieu of taxes on that part of the development designed for and occupied by elderly citizens.

(Prior Code, § 1.68)