§ 46-177. Preamble and purpose.

(a)

It is acknowledged that it is a proper public purpose of the state and its political subdivisions to provide housing for its citizens of low income and to encourage the development for such housing by providing for a service charge in lieu of property taxes in accordance with the State Housing Development Authority Act of 1966, being Public Act No. 346 of the Public Acts of Michigan of 1966 (MCLA 125.1401 et seq., MSA 16.114(1) et seq.), as amended.

(b)

The city is authorized by the act to establish or change the service charge to be paid in lieu of taxes by any and all classes of housing exempt from taxation under the act at any amount it chooses not to exceed the taxes that would be paid but for the act. It is further acknowledged that such housing for persons and families of low income is a public necessity, and as the city will be benefited and improved by such housing, that the encouragement of the same by providing certain real estate tax exemptions therefor is a valid public purpose; further, that the continuance of the provisions of this division for tax exemption and the service charge in lieu of taxes during the periods hereinafter contemplated are essential to the determination of economic feasibility of the housing development which is constructed and financed in reliance thereon.

(c)

The city acknowledges that Riverwalk Meadows Limited Dividend Housing Association, a Michigan Limited Partnership, the "sponsor," has offered subject to the receipt of a federally aided mortgage, as that term is defined in the act, to erect, own and operate a housing development identified as Riverwalk Meadows on certain property located at 505 Germania Avenue, between Ionia Avenue and Arnold Street in the city, to serve elderly persons and families of low income and that the sponsor has offered to pay to the city on account of such housing development an annual service charge for public services in lieu of all taxes.

(Code 1970, § 11½-45)