Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Housing Affordable topic
No spam. Unsubscribe anytime.
Reed City Council adopts tax-exemption ordinance for Crossroads Apartments
Summary
Reed City Council voted 5-1 on Sept. 9 to adopt Ordinance 004-2024, authorizing a payment-in-lieu tax arrangement for Crossroads Apartments at 848 S Chestnut; the measure sets the annual service charge at 6% of annual shelter rents and utilities and is limited to 40 years.
Reed City Council voted 5-1 on Sept. 9 to adopt Ordinance 004-2024, the "Reed City Tax Exemption Ordinance—Crossroads Apartments," approving a tax-exemption and payment-in-lieu agreement for a proposed low-income housing project at 848 S Chestnut.
The ordinance, introduced at the Aug. 12 meeting by Councilperson Trevor Guiles and adopted Sept. 9, authorizes the city to accept an annual service charge in lieu of ad valorem property taxes for the project. The ordinance defines the annual service charge as 6.0% of the project's Annual Shelter Rents and utilities, payable in the same manner as general property taxes, and states the ordinance will remain in effect so long as a qualifying mortgage loan is outstanding and the project remains subject to LIHTC income and rent restrictions. The ordinance also limits its duration to 40 years from the date of council approval and becomes effective 30 days after publication.
Councilperson Trevor Guiles moved to adopt the ordinance; Nicole Woodside seconded. The adoption passed on a roll-call vote of five in favor (Mayor Roger Meinert, Guiles, Woodside, Russell Nehmer, Dan Burchett) and one opposed (Brad Nixon). The ordinance text in the record identifies the sponsor for the project as GDC-CR Limited Dividend Housing Association, LLC and references the Michigan State Housing Development Authority and the Low-Income Housing Tax Credit (LIHTC) program as programmatic context for the financing and rent/income restrictions.
The ordinance includes standard contractual provisions under the State Housing Development Authority Act of 1966 and sets procedural matters for payment collection and distribution, tying collection timing to rents received through Dec. 31 of the prior year and requiring annual payment on or before Aug. 31. The city clerk recorded the ordinance as introduced Aug. 12 and adopted Sept. 9.
The council record shows no public comments were received during the public hearing on the ordinance. The next procedural step is publication; the ordinance becomes effective 30 days after its publication in accordance with the ordinance language.
