PLAINFIELD CHARTER TOWNSHIP KENT COUNTY, MICHIGAN ORDINANCE NO. RESOLUTION NO.

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1 PLAINFIELD CHARTER TOWNSHIP KENT COUNTY, MICHIGAN ORDINANCE NO. RESOLUTION NO. AN ORDINANCE TO AMEND PLAINFIELD CHARTER TOWNSHIP ORDINANCE NO. 612, TO PROVIDE FOR A SERVICE CHARGE IN LIEU OF TAXES FOR A MULTIPLE FAMILY DWELLING PROJECT FOR ELDERLY PERSONS OF LOW INCOME TO BE FINANCED OR ASSISTED PURSUANT TO THE PROVISIONS OF THE STATE HOUSING DEVELOPMENT AUTHORITY ACT OF 1966, AS AMENDED. The Plainfield Charter Township Ordains: Section 1. Short Title. This ordinance shall be known and cited as the Plainfield Charter Township Woodfield Senior Housing Tax Exemption Ordinance. Section 2. Preamble. It is acknowledged that it is a proper public purpose of the State of Michigan and its political subdivisions to provide housing for Low Income Persons and Families 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 (1966 PA 346, as amended, MCL , et seq, MSA (1), et seq). Plainfield Charter Township ( Township ) 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 otherwise be paid except for this Act. It is further acknowledged that such housing for persons and families of low income is a public necessity, and as the Township will be benefited and improved by such housing, the encouragement of the same by providing that certain real estate tax exemption for such housing is a valid public purpose; further that the continuance of the provisions of this Ordinance for tax exemption and the service charge in lieu of all ad valorem taxes during the period contemplated in this Ordinance are essential to the determination of economic feasibility of housing developments which are constructed and financed in reliance upon such tax exemption. The Township acknowledges that Woodfield/MHT Limited Dividend Housing Association Limited Partnership has been operating through the Michigan State Housing Development Authority, a housing development identified as Woodfield Senior Apartments and/or Ambrose Ridge on certain property located in Plainfield Charter Township, Michigan (the Property ), and more particularly described as: That part of the NE 1/4, Section 32, T8N, R11W, Plainfield Township, Kent County, Michigan described as: Beginning at the E 1/4 of Section 32; thence N 89º38 02 W feet along the South Line of said NE 1/4; thence N W feet parallel with the East Line of said NE 1/4; thence S 89º38 02 E feet to a point on the East line of said NE 1/4 which is S00º22 15 E feet from the NE ¼ of Section 32; thence S E feet along the East line of said NE ¼ to the place of beginning. Subject to easement of record and to Highway R.O.W. for Woodworth Street. This parcel contains acres including Highway R.O.W. Parcel No: Commonly known as 1501 Woodworth Ave., N.E., Grand Rapids, MI The housing development shall serve Elderly Low Income Persons and Families, and the Sponsor has offered to continue to pay the Township on account of this housing development an annual service charge for public services in lieu of all ad valorem taxes.

2 Section 3. Definitions. All terms shall be defined as set forth in the State Housing Development Authority Act of 1966, being Public Act 346 of 1966 of the State of Michigan, as amended, except as follows: A. Act means the State Housing Development Authority Act, being Public Act 346 of 1966 of the State of Michigan, as amended. B. Annual Shelter Rent means the total collections during an agreed annual period from all occupants of a housing development representing rent or occupancy charges, exclusive of Utilities. C. Authority means the Michigan State Housing Development Authority, a public body, corporate and politic of the State of Michigan. D. Housing Development means a development which contains a significant element of housing for persons of low income and such elements of other housing, commercial, recreational, industrial, communal, and educational facilities as the Authority determines improve the quality of the development as it relates to housing for persons of low income. E. LIHTC Program means the Low Income Housing Tax Credit Program administered by the Authority under Section 42 of the Internal Revenue Code of 1986, as amended. F. Low Income Persons and Families means persons and families eligible to move into a housing project, as defined in Section 15(a)(7) of the Act. G. Mortgage Loan means a loan that is Federally-Aided (as defined in the Act) or a loan or grant made or to be made by the Authority, for the construction, rehabilitation, acquisition and/or permanent financing of a housing project, and secured by a mortgage on the housing project. H. Elderly or Senior means a single person 55 years of age or older, or a household in which at least one member is 55 years of age or older and all other members are 50 years of age or older. I. Utilities mean electric, gas, water and sanitary sewer services furnished to the occupants which are paid by the Housing Development. J. Sponsor means Woodfield/MHT Limited Dividend Housing Association Limited Partnership, a Michigan limited partnership, which has applied to the Authority and been approved for an allocation under the LIHTC Program to finance a Housing Development. Section 4. Class of Housing Developments. It is determined that the Housing Development identified as Woodfield and/or Ambrose Ridge is a housing project for Elderly Low Income Persons and Families that are financed with a Mortgage Loan. An exemption was previously granted in 1995 to Woodfield and/or Ambrose Ridge as a housing project for Elderly Low Income Persons and Families that are financed with a Mortgage Loan. Whereas, this Ordinance modifies the previously granted exemption, said Housing Development is grandfathered in as a Housing Development within the class of Housing Developments to which the tax exemption applies and for which a service charge shall be paid in lieu of such taxes.

3 Section 5. Establishment of Annual Service Charge. The Housing Development identified as Woodfield and/or Ambrose Ridge comprising of 84 units and the property on which it is located shall be exempt from all ad valorem property taxes from and after the commencement of construction. The Township, acknowledging that the Sponsor and the Authority have established the economic feasibility of the Housing Development in reliance upon the enactment and continuing effect of this Ordinance and the qualification of the Housing Development for exemption from all ad valorem property taxes and a payment in lieu of taxes as established in this Ordinance. Therefore, and in consideration of the Sponsor s offer, subject to receipt of an allocation under the LIHTC Program from the Authority and subject to any and all other necessary approvals from the Authority or any other governmental entity, to construct, own and operate the Housing Development, the Township agrees to accept payment of an annual service charge for public services in lieu of all ad valorem property taxes. The annual service charge shall be equal to twelve percent (12%) of the Annual Shelter Rent, which is computed by subtracting Utilities from all rents actually collected. However, the annual service charge shall not exceed the taxes that would be paid but for Public Act 346 of 1966 of the State of Michigan, as amended. Section 6. Contractual Effect of Ordinance. Notwithstanding the provision of Section 15(a)(5) of the Act to the contrary, a contract between the Township and the Sponsor with the Authority as third party beneficiary under the contract, to provide tax exemption and accept payments in lieu of taxes, as previously described, is effectuated by enactment of this Ordinance. Section 7. Delivery of Municipal Services. The nature and extent and delivery of police, fire, EMS and other municipal services provided shall be in the sole, final, and absolute discretion of the Township. Section 8. Payment of Service Charge. The annual service charge in lieu of taxes as determined under the Ordinance shall be payable in the same manner and at the same time as Township property taxes which are payable to the Township. Except as may be provided by statute, said annual service charge shall be distributed to the several units levying the general property tax in the same proportion as prevailed with the general property tax in the previous calendar year. Collection procedures shall be in accordance with the provisions of the General Property Tax Act (1893 PA 206, as amended; MCL 211.1, et seq). A default with respect to performance of any obligation owed by Sponsor to the Township under the Municipal Services Agreement shall constitute a default under the terms of this Ordinance and viceversa, entitling the Township to take any enforcement action authorized by this Ordinance or by other law. Section 9. Limitation on the Payment of Annual Service Charge. Notwithstanding the provision of Section 5, the service charge to be paid each year in lieu of taxes for the part of the Housing Development which is tax exempt and occupied by persons who are not Elderly Low Income Persons or Families shall be equal to the full amount of the taxes which would be paid for such occupied units if the Housing Development were not tax exempt. Section 10. Attorney Fees Reimbursement. Sponsor shall reimburse the Township for attorney fees incurred by the Township in the preparation and negotiation of this Ordinance and/or enforcing the Ordinance as a result of Sponsor s default. Section 11. Duration. This Ordinance shall remain in effect and shall not terminate so long as a Mortgage Loan remains outstanding and unpaid and the Housing Development remains subject to income and rent restrictions under the LIHTC Program. Said Mortgage Loan ends on November 5, 2027 which would result in the Annual Shelter Rents collected in 2027 being prorated as of the termination date with the Sponsor being billed for a PILOT payment in 2028 for a portion of 2027, together with an assessment for prorated taxes for the remainder of 2027 and taxes based on the valuation of the property as of December 31, 2027.

4 Section 12. Modification or Rescission. Notwithstanding the provisions of this Ordinance, the Township reserves the right to subsequently revise ordinances which may modify the tax exemption program, provided that such changes are consistent with Act 346 of 1966, as amended. Section 13. Maintenance. The Housing Development shall be maintained in accordance with Plainfield Charter Township municipal codes. Section 14. Annual Shelter Rent. The agreed annual period for the Annual Shelter Rent shall be the calendar year. On or before May 1, 2012 of each year, the Sponsor shall provide the Township with its annual audited financial statements and its calculation of the Annual Shelter Rent for the prior calendar year which shall show, at a minimum, the actual rent collected for the Housing Development, and actual utilities paid by the Sponsor for services rendered to the occupants of the Housing Development. Upon request of the Township, the Sponsor shall provide such other information as is reasonably requested pertaining to the calculation of the Annual Shelter Rent. Furthermore, if any portion of the Housing Development is occupied by other than low income persons or families, the Sponsor shall notify the Township within thirty (30) days. Section 15. Severability. The various sections and provisions of this Ordinance shall be deemed to be severable, and should any section or provision of this Ordinance be declared by any court of competent jurisdiction to be unconstitutional or invalid, the same shall not affect the validity of the Ordinance as a whole or any section or provision of this Ordinance other than the section or provision so declared to be unconstitutional or invalid. Section 16. Conflict of Laws. All ordinances or parts of ordinances in conflict with this Ordinance are repealed to the extent of such conflict. This Ordinance specifically supersedes Ordinance No This Ordinance does not repeal Section of the Plainfield Charter Township Code of Ordinances, it being the intent of this Ordinance to modify an existing exemption, and not to create any class of housing projects within the Township for which any new exemption can be granted. Section 17. Effective Date. This Ordinance shall become effective immediately upon publication. YEAS: NAYS: ABSENT: Motion carried. Ordinance # / Resolution #12- declared adopted. K. Scott Harvey Plainfield Charter Township Clerk

5 CERTIFICATION The undersigned, as the duly elected and acting clerk of the township, hereby certifies that the foregoing is a true and accurate copy of Ordinance # / Resolution #12- as adopted by the Township Board of Plainfield Charter Township at a regular meeting held on November 5, 2012 at which a quorum was present. Plainfield Charter Township Clerk Date

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