§ 12-77. Purpose.

(a)

It is acknowledged that it is a proper public purpose of the State of Michigan and its political subdivisions to provide housing for its citizens of low to 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 PA 346, as amended, MCL 125.1401 et seq. The City of Cadillac 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.

(b)

It is further acknowledged that such housing for persons of low to moderate income is a public necessity, and as the City of Cadillac will be benefited 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 of this division for tax exemption and the service charge in lieu of taxes during the periods contemplated in this division are essential to the determination of economic feasibility of housing developments which are constructed and financed in reliance on such division and service charge.

(c)

The City of Cadillac acknowledges that Maple Hill Limited Dividend Housing Association Limited Partnership (a "Sponsor") has offered, subject to receipt of an allocation under the low income housing tax credit program (the "LIHTCP") from the Michigan State Housing Development Authority (the "authority"), to rehabilitate, own and operate a housing development identified as Maple Hill Apartments (the "Housing Development") on certain property located at 207 Pearl Street, 209 Pearl Street, and 211 Pearl Street in the City of Cadillac as legally described in "Exhibit A" attached to ordinance no. 2016-10, to serve persons and families of low to moderate income, and that the sponsor has offered to pay the City of Cadillac, on account of this development, an annual service charge for public services in lieu of taxes on that part of the development designed for and occupied by persons of low income.

(Ord. No. 2016-10, § 1, 9-6-2016)