Title
Resolution to Approve a Payment in Lieu of Taxes (PILOT) for the Affordable Housing Project at 3695 South State Street
Memorandum
3695 State Limited Dividend Housing Association Limited Partnership intends to build 66 units of affordable housing supported by an application for Low Income Housing Tax Credits (LIHTC). 100% of the units will serve households with an average income at or below 60% of the Area Median Income (AMI).
The proposed housing project makes the property eligible for a payment in lieu of taxes (PILOT) under Chapter 19 of City Code. 3695 State Limited Dividend Housing Association Limited Partnership can receive points on their LIHTC application that increase the likelihood of receiving the tax credits if the City adopts a PILOT for the project.
Therefore, staff recommends that the City Council approve a PILOT for 3695 South State Street to support the development of 66 additional units of affordable housing in the City.
Staff
Prepared By: Mariana Melin-Corcoran, City Planner
Reviewed By: Brett Lenart, Planning Manager
Derek Delacourt, Community Services Area Administrator
Approved By: Milton Dohoney Jr., City Administrator
Body
Whereas, 3695 State Limited Dividend Housing Association Limited Partnership (“3695 State Limited”) is developing approximately 66 units of affordable housing at 3695 South State Street;
Whereas, 3695 State Limited will be applying for Low Income Housing Tax Credits (LIHTC) from the Michigan State Housing Development Authority (MSHDA);
Whereas, The housing units will be restricted to households with incomes at or below 60% of Area Median Income (AMI); and
Whereas, City Council has determined prospectively that, under Chapter 19 of City Code, the affordable housing project at 3695 South State Street will be qualified for and should be granted a tax exemption and pay an annual service charge in lieu of taxes;
RESOLVED, That the housing project to be developed at 3695 South State Street in the City of Ann Arbor shall be exempted from all ad valorem property taxes and shall pay an annual service charge in lieu of taxes equal to one dollar ($1.00) for each eligible housing unit in the housing project, as provided by Chapter 19 of City Code and the Michigan State Housing Development Authority Act, said housing project being the following real property, as described in Liber 5263, Page 922 Washtenaw County Records:
A PORTION OF LOT 1, RESEARCH PARK, AS RECORDED IN LIBER 15 OF PLATS, PAGES 56 AND 57, WASHTENAW COUNTY RECORDS; BEING MORE PARTICULARLY DESCRIBED AS: COMMENCING AT THE SOUTHEAST CORNER OF LOT 1, RESEARCH PARK, AS RECORDED IN LIBER 15 OF PLATS, PAGES 56 AND 57, WASHTENAW COUNTY RECORDS; THENCE NORTH 12 DEGREES 06' 52" WEST 373.16 FEET ALONG THE EAST LINE OF SAID LOT 1 TO THE POINT OF BEGINNING; THENCE SOUTH 78 DEGREES 28' 08" WEST 290.41 FEET; THENCE NORTHERLY 241.70 FEET ALONG THE ARC OF CIRCULAR CURVE TO THE RIGHT; RADIUS 1680.86 FEET, CENTRAL ANGLE 08 DEGREES 14' 20", CHORD NORTH 07 DEGREES 57' 21" WEST 241.50 FEET; THENCE NORTH 87 DEGREES 50' 48" EAST 277.09 FEET ALONG THE NORTH LINE OF SAID LOT 1; THENCE SOUTH 12 DEGREES 06' 52" EAST 195.89 FEET ALONG THE EAST LINE OF SAID LOT 1 TO THE POINT OF BEGINNING;
Tax Parcel: 09-12-09-300-016
RESOLVED, That the tax exemption shall be effective on December 31st of the year in which this resolution is adopted, subject to receipt from the Michigan State Housing Development Authority of the “Notification to Local Assessor of Exemption” for the project;
RESOLVED, That this resolution shall remain in effect and shall not terminate so long as both (1) the housing project remains eligible for tax exemption under Chapter 19 of City Code and state and federal law, and (2) a state or federally-aided mortgage loan remains outstanding and unpaid on the housing project, as provided in Chapter 19 of City Code;
RESOLVED, That, notwithstanding the provisions of Section 15(a)(5) of the Michigan State Housing Development Act (MCL 125.1401 et seq.) to the contrary, a contract between the City of Ann Arbor and 3695 State Limited, or its affiliate, with the Michigan State Housing Development Authority as third party beneficiary under the contract, to provide this tax exemption and accept payments in lieu of taxes, is effectuated by adoption of this resolution;
RESOLVED, That the owner or operator of the housing project shall, upon request by the City, provide evidence to verify continuing eligibility for tax exemption under Chapter 19 of City Code; and
RESOLVED, That the City Administrator is authorized to take all appropriate actions to implement this resolution.