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File #: 22-1968    Version: 1 Name: 2/6/23 Ordinance - Chapter 19 - Tax Exemption for Housing Projects
Type: Ordinance Status: Passed
File created: 2/6/2023 In control: City Council
On agenda: 2/21/2023 Final action: 2/21/2023
Enactment date: 2/21/2023 Enactment #: ORD-23-06
Title: An Ordinance to Amend Chapter 19 (Tax Exemptions for Housing Projects) of Title I of the Code of the City of Ann Arbor (ORD-23-06)
Sponsors: Christopher Taylor, Jen Eyer, Erica Briggs
Attachments: 1. ORD-23-06 Briefed and Approved.pdf, 2. ORD-23-06 Briefed.pdf, 3. Ordinance to Repeal and Replace Chapter 19.pdf, 4. Current Chapter 19-Ann Arbor, MI Code of Ordinances.pdf, 5. 2022 Ann Arbor AMI and Affordable Monthly Housing Costs.pdf, 6. ORD-23-06 Approval Notice.pdf, 7. WLN clipping ORD-23-06 Tax Exempt Housing Projects - Public Hearing Notice.pdf
An Ordinance to Amend Chapter 19 (Tax Exemptions for Housing Projects) of Title I of the Code of the City of Ann Arbor (ORD-23-06)
Attached for your review and approval is an amendment to Chapter 19, which is the City's ordinance that allows property tax exemption for certain low-income housing projects, also known as a PILOT (Payment in Lieu of Taxes), as permitted by State Housing Development Authority Act of 1966 (1966 PA 346, as amended; MCL 125.1401, et seq. The current Chapter 19 may be found in the attached pdf or online at:

The primary purpose of this amendment is to increase the minimum income for eligible housing projects from 60% of Area Median Income to 80%; and to allow tax exemption for projects where the average income does not exceed 60%. As discussed below, this reflects current practices related to grants for affordable housing from the federal Department of Housing and Urban Development.

This chapter was originally enacted in 1968, and has been amended several times. The ordinance as written is inconsistent with current best practices for tax exemption ordinances in Michigan. Therefore, the amendment repeals and replaces the existing chapter in its entirety. This amendment was reviewed by the Michigan State Housing Development Authority (MSHDA) for consistency with State law and is based on their model PILOT ordinance.

At its meeting on November 10, 2022, the Housing and Human Services Advisory Board passed a resolution recommending that the PILOT ordinance be amended to make it consistent with the Low-Income Housing Tax Credit (LIHTC) and other state and federal affordable housing programs.

MCL 125.1415a. (1) defines an eligible housing project:

"If a housing project owned by a nonprofit housing corporation, consumer housing cooperative, limited dividend housing corporation, mobile home park corporation, or mobile home ...

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