§ 2-165. Payment of annual service fee in lieu of taxes.

(1)

Pursuant to section 11a(1) of Public Act No. 18 of 1933 (MCL 125.661a(1)), the housing commission shall, beginning in 2014, being the 2013 tax year, pay on or before March 31 of that year, and on or before the same date annually, a service fee in lieu of taxes equal to ten percent of the annual shelter rents obtained from the projects and facilities owned and operated by a qualified entity or qualified entities.

Pursuant to MCL 125.661a(3), the term "qualified entity" or "qualified entities" means either of the following:

(a)

A Michigan nonprofit corporation or a Michigan limited partnership having a Michigan nonprofit corporation as its sole general partner, if one of the following applies:

i.

The nonprofit corporation is owned by the commission.

ii.

A majority of the members of the board of directors of the nonprofit corporation are elected and removable by the commission.

iii.

The commission is the sole member of the nonprofit corporation.

(b)

A for-profit corporation, partnership, or company formed or incorporated by the commission for the sole purpose of syndicating low income housing tax credits in connection with the redevelopment of a housing project that has been owned by the commission, if the commission maintains oversight responsibility for the management and operation of the project for which low income housing tax credits were syndicated and the for-profit entity does not engage in any other business activity unrelated to the housing project.

(2)

The housing commission is responsible for paying the service fee in lieu of taxes for all facilities owned or operated by a qualified entity.

(3)

No later than 30 days after the close of each calendar year, the housing commission shall provide to the city an accounting showing the gross annual shelter rents received during the previous year from its qualified entities. The housing commission shall provide all information in connection with such accounting as may reasonably be requested by the city for the purpose of verifying the amount of annual shelter rents and the resulting payment of the service fee in lieu of taxes to be paid.

(Ord. No. 2014-03, § 1, 2-17-2014)