Committee on Ways and Means

AGENDA Committee on Ways and Means July 16, 2026 at 3:00 PM Lansing City Hall, City Council Conference Room 124 W. Michigan Avenue, 10th Floor To provide input or ask questions on any item that is listed on the agenda, members of the public may contact the City Council at city.council@lansingmi.gov or (517) 483-4177 prior to the meeting. To view the meeting live and participate in virtual public comment: https://www.lansingmi.gov/1212/Council-Committee-Meetings Council Member Carter, Chairperson Council Member Spadafore, Vice Chairperson Council Member Nevarez Martinez, Member 1. Call to Order 2. Roll Call 3. Minutes A. May 21, 2026 4. Public Comment on Agenda Items (Up to 3 Minutes) 5. Discussion/Action: B. RESOLUTION - Grant Acceptance; United States Department of Transportation, Reconnecting Communities Program C. DISCUSSION - ORDINANCE - Repeal Chapter 886 Tax Exemptions - Multi Family Dwellings D. DISCUSSION - ORDINANCE - Add Chapter 886, Section 886.01-886.07; Service Charge of 4% of annual shelter rents for eligible housing development projects 6. Other 7. Adjourn Persons with disabilities who need an accommodation to fully participate in these meetings should contact the City Council Office at 517-483-4177 (TTY 711) 24 hour notice may be needed for certain accommodations. An attempt will be made to grant all reasonable accommodation requests. Page 1 of 32  DRAFT MINUTES Committee on Ways and Means Thursday, May 21, 2026 @ 3:00 p.m. City Council Conference Room CALL TO ORDER Council Member Carter called the meeting to order at 3:00 pm PRESENT Council Member Tamera Carter, Chair Council Member Peter Spadafore, Vice Chair Council Member Deyanira Nevarez Martinez, Member- arrived at 3:01 p.m. OTHERS PRESENT Sherrie Boak, Council Legislative Office Manager Greg Venker, OCA Andy Kilpatrick, Public Service Scott Cook, Public Service Bill Brunner, Public Service Emily Stevens, Parks and Recreation Delvata Moses, HRCS Council Member Kost Rawley Van Fossen – arrived at 3:14: p., Minutes MOTION BY COUNCIL MEMBER SPADAFORE TO APPROVE THE MINUTES OF MAY 7, 2026 AS PRESENTED. MOTION CARRIED 2-0. Public Comment No public comment at this time. Discussion/Action: RESOLUTION – Grant Acceptance; Michigan Transportation Economic Development Fund on behalf of the Capital Region Airport Authority for Capital City Blvd. MOTION BY COUNCIL MEMBER SPADAFORE TO APPROVE THE RESOLUTION FOR THE GRANT ACCEPTANCE FROM MICHIGAN TRANSPORTATION ECONOMIC DEVELOPMENT FUND. Mr. Kilpatrick briefly stated the City is the fiduciary, and there will be an agreement and the resolution says that officially. MOTION CARRIED 3-0. Page 2 of 32  DRAFT RESOLUTION – Grant Acceptance; Ingham County Housing and Homeless Millage for ModPods for unhoused individuals COUNCIL MEMBER SPADAFORE MOVED TO TAKE OFF THE TABLE. MOTION CARRIED 3- 0. Council Member Spadafore had proposed to table until budget was approved with the ModPod funds were in it. MOTION BY COUNCIL MEMBER SPADAFORE TO APPROVE THE RESOLUTION FOR GRANT ACCEPTANCE FROM INGHAM COUNTY FOR THE MODPODS HOMELESS HOUSING. MOTION CARRIED 3-0. RESOLUTION – GRANT ACCEPTANCE; MICHIGAN HUMANITIES COUNCIL TOURING GRANT Ms. Stevens there will be fourth of July event with a kid friendly performer and this grant funds will cover the cost. MOTION BY COUNCIL MEMBER SPADAFORE TO APPROVE THE RESOLUTION FOR GRANT ACCEPTANCE FROM MICHIGAN HUMANITIES COUNCIL TOURING. MOTION CARRIED 3-0. PLACE ON FILE – Sole Source; Public Service Department notification on Hamlett Environmental Technologies as vendor for Stainless Steel Slide Gate for Ultraviolet Disinfection Channel No 4 Mr. Bruner explained the need for the sole source is for the gates that let in the water into the disinfection process and presented a rendering. There are currently gates and they have used this vendor before, at that time it was put out to bid and this contractor was the lowest bidder. MOTION BY COUNCIL MEMBER SPADAFORE TO PLACE ON FILE. MOTION CARRIED 3-0. ORDINANCE – Amending Chapter 218 to provide for the creation and semiannual update of a City Tax and Debt Dashboard Council Member Carter noted this was the request from the Charter Commission, a public hearing was held with no further comments. MOTION BY COUNCIL MEMBER SPADAFORE TO APPROVE THE ORDINANCE TO AMEND CHAPTER 218 FOR A SEMIANNUAL UPDATE OF CITY TAX AND DEBT DASHBOARD. MOTION CARRIED 3-0. RESOLUTION – Introduce and Setting a Public Hearing; Amend Chapter 230, Adding Section 230.02; Allocate funding for Supportive Housing Services Council Member Spadafore explained this was during the data center discussion, and from that there was discussion to parcel off funds for housing support, but since the data center did not occur, since HRCS does use a percentage of GF for basic human services, this is a proposal for 2.5% part of the 1.35% that is currently set aside. This is to reallocate and direct the resources, and idea behind the fund is to help people stay in safe housing. Ms. Moses stated it was $467,000 currently, confirmed by Mr. Venker. Council Member Spadafore stated he had discussions with EDP about their programs. Again the intention is to help people to stay in their housing, and discussions on focus with owner occupied. Council Member Nevarez Martinez referred to the statement in the ordinance on supportive housing. Council Member Spadafore stated they have time. Page 3 of 32  DRAFT MOTION BY COUNCIL MEMBER SPADAFORE TO TABLE FOR FURTHER DISCUSSION UNTIL THE MEETING ON JUNE 18TH. Ms. Moses asked to be involved in the conversation. MOTION CARRIED 3-0. RESOLUTION – Introduce and Setting a Public Hearing; REPEAL Chapter 886 Tax Exemptions for Multifamily Dwelling Projects Council Member Nevarez Martinez stated she is currently working on a 4% PILOT by right, and currently it is 10%, and everything that falls out of that comes to Council and is reviewed case by case. This would allow more to go through the process and not get bogged down through the Council process. This would be having 30% of their building affordable. In order to move that, this repeal has to occur first. Mr. Venker stated there is a Chapter 886 on the books, related to Capital Commons fromj 1980, it is a long hold off, and Capital Commons is codified under another one. This does not undo the Capital Commons PILOT. MOTION BY COUNCIL MEMBER SPADAFORE TO APPROVE THE RESOLUTION TO SET THE PUBLIC HEARING TO REPEAL CHAPTER 886 FOR JUNE 22, 2026. MOTION CARRIED 3-0. RESOLUTION – Introduce and Setting a Public Hearing; Add Chapter 886, Sections 886.01- 886.07, Service Charge of Four Percent (4%) of Annual Shelter Rents for Eligible Housing Development Projects Council Member Nevarez Martinez reiterated earlier statements made about this ordinance during the REPEAL agenda item, confirming this would be to create the 4% PILOT. Mr. Venker stated on page 3 of the ordinance there are currently blanks, and he had sent a draft 6 to Council Member Nevarez Martinez shortly before this meeting. Council Member Nevarez Martinez confirmed it was still I discussion but has since been landed on 30%. Ms. Boak will forward Draft 6 when she obtains from the City Attorney. MOTION BY COUNCIL MEMBER SPADAFORE TO APPROVE THE RESOLUTION TO SET THE PUBLIC HEARING TO ADD CHAPTER 886 SECTIONS 886.01-886.07 FOR JUNE 22, 2026. MOTION CARRIED 3-0 PLACE ON FILE – Purchase Price Threshold, Fiscal Year 2026-2027 Council Member Carter noted this ordinance was approved in 2025, and in that amendment, this is an annual request from Finance, and can be increased by $1,000. MOTION BY COUNCIL MEMBER SPADAFORE TO PLACE ON FILE. MOTION CARRIED 3-0. OTHER Council Member Carter asked the Committee if they were interested in cancelling the June 4th meeting and it was concurred. Ms. Boak asked since Council Member Spadafore stated he will not be present at the June 18th meeting either, if they wished to move the further discussion on Chapter 230 Section 230.02 to the July 2, 2026 Committee meeting. Page 4 of 32  DRAFT ADJOURN Adjourned at 3:24 pm Submitted by, Sherrie Boak, Recording Secretary, Lansing City Council Approved by the Committee on Page 5 of 32  LANSING CITY COUNCIL FY26 GRANT INFORMATION FORM (Required for all grant applications and acceptances) PREFERRED REFERRAL DATE: 6/8/2026 GRANT NAME: Fiscal Year 2024 Reconnecting Communities Pilot Program – “Our Way for the Highway” GRANT AGENCY: United States Department of Transportation ASSISTANCE LISTING (CDFA): NA – CDFA does not manage RCP DEPARTMENT: Public Service CONTACT NAME: Nicole McPherson, City Engineer CONTACT PHONE: 483-4456 GRANT PERIOD START: Upon Agreement signing (estimated 6/15/2026) GRANT PERIOD END: 03/30/2029 APPLICATION DATE: September 2024 AWARD DATE: October 2025 TOTAL AMOUNT: $1,040,000 federal ADMINISTRATIVE COST RECOVERY AMOUNT: TBD SUMMARY OF GRANT PURPOSE AND ALLOWABLE USES: Planning and community engagement regarding way to reconnect neighborhoods divided by the construction of I-496. The project will also look at ways to strengthen the connection between Downtown and REO Town Continued on next page Page 6 of 32 PROJECTED ACCOUNT CODE DETAIL (OBJECT MINIMUM): Account Description Amount 273.456300.80100.50xxx Contractual Services $1,040,000 MATCHING FUNDS ACCOUNT CODE DETAIL (IF APPLICABLE): Account Description Amount 202.456300.80100.50xxx Grant Match (20%) $260,000 Page 7 of 32  BY THE COMMITTEE ON WAYS AND MEANS RESOLVED BY THE CITY COUNCIL OF THE CITY OF LANSING WHEREAS, the City of Lansing Public Service Department (the City) was awarded Reconnecting Communities Program (RCP) grant funding by the United States Department of Transportation for the development of solutions to reconnect residential areas separated by the construction of I-496; and WHEREAS, the City submitted a proposal to the United States Department of Transportation in September of 2024; and WHEREAS, the United States Department of Transportation Grant was the result of a competitive proposal process, and the City was notified that it was awarded grant funding in October of 2025; and WHEREAS, the Safe Streets for All grant is funded through the Infrastructure Investment and Jobs Act (IIJA); and WHEREAS, the United States Department of Transportation awarded the City $1,040,000 in federal funding with a required local match amount of $260,000 for a total project amount of $1.3 million; and WHEREAS, the required local match will come from Act 51 Major Street funds; and WHEREAS, project must be completed by March 2029; and WHEREAS, The City may request reimbursement of costs incurred in the performance of the project after execution of the grant agreement and subject to the terms and conditions of the agreement. NOW, THEREFORE, BE IT RESOLVED, that the Lansing City Council approves acceptance of the Reconnecting Communities Program grant. BE IT FINALLY RESOLVED, the Administration is authorized to receive the funds, create the necessary accounts, make necessary transfers for administration of the grant in accordance with the requirements of the grantor, and enter into any agreements necessary to accept the grant, subject to approval as to form by the City Attorney. Page 8 of 32  DRAFT # 1 DATE: 5/7/2026 1 ORDINANCE NO. ___________ 2 An ordinance of the City of Lansing, Michigan, to repeal Chapter 886 of the Lansing 3 Codified Ordinances, Tax Exemptions for Multifamily Dwelling Projects, as the incentive and 4 project described therein has expired and the Chapter is no longer needed. 5 THE CITY OF LANSING ORDAINS: 6 Section 1. That Chapter 886, of the Codified Ordinances of the City of Lansing, 7 Michigan, including Sections 886.01-886.04, be and is hereby repealed in its entirety and shall 8 be null and void of no effect. 9 Section 2. All ordinances, resolutions or rules, parts of ordinances, resolutions or rules 10 inconsistent with the provisions are repealed. 11 Section 3. Should any section, clause or phrase of this ordinance be declared to be 12 invalid, the same shall not affect the validity of the ordinance as a whole, or any part thereof 13 other than the part so declared to be invalid. 14 Section 4. This ordinance shall take effect on the 14th day after enactment, unless given 15 immediate effect by City Council. 1 Page 9 of 32 Proposed 4% PILOT Ordinance PUBLIC HEARING – LANSING CITY COUNCIL 06/22/2026 Page 10 of 32 Payment In Lieu Of Taxes (PILOT) A PILOT is not a tax exemption. Instead of paying traditional property taxes, qualifying affordable housing developments pay a service charge based on shelter rents. The purpose is to make affordable housing financially feasible while ensuring the development still contributes revenue to the city. Page 11 of 32 Why Does Michigan Allow PILOTs? Michigan authorizes PILOTs through the State Housing Development Authority Act. The Legislature recognized that affordable housing often cannot be built without financial assistance. A PILOT is one financing tool among many that helps close the funding gap. Page 12 of 32 What is LIHTC? Low Income Housing Tax Credit LIHTC is the federal government's primary affordable housing program. Developments receive tax credits only if they: ✓ Meet affordability requirements ✓ Remain affordable ✓ Pass inspections ✓ Meet compliance standards In Michigan, these projects are administered through MSHDA. Page 13 of 32  Partner Role How LIHTC and Creates the Low-Income Housing Tax PILOTs Work Federal Government Credit (LIHTC) program. Together Allocates tax credits, underwrites The PILOT is one piece of the financing MSHDA projects, and monitors compliance in package. Michigan. Without it, many 4% developments simply cannot close their financing Assembles financing, constructs the gap. development, and must comply with Developer affordability and maintenance requirements. Provides a local PILOT that helps close City of Lansing the financing gap for qualifying developments. Page 14 of 32 What this Ordinance Does This ordinance creates a by-right 4% PILOT for developments that already meet objective requirements. To qualify a development must: • Use the 4% LIHTC program • Reserve at least 30% of units as affordable • Meet all state and federal requirements • Not already be receiving a PILOT on that property If those standards are met, the City enters into the PILOT agreement. Page 15 of 32 What this Ordinance Does NOT Do It does not eliminate affordable housing standards It does not eliminate inspections It does not eliminate compliance monitoring It does not eliminate state oversight It does not eliminate federal oversight It does not apply to every affordable housing project Page 16 of 32 Safeguards Every LIHTC development already has: ✓ Long-term affordability requirements ✓ Annual financial reporting ✓ Income certification ✓ Physical inspections ✓ Compliance monitoring ✓ Risk of losing tax credits for violations This ordinance relies upon—not replaces—that oversight. Page 17 of 32 Maintenance Requirements One concern I've heard is: "What if developers don't maintain the property?" LIHTC already requires: • Replacement reserves • Capital needs planning • Ongoing maintenance • Physical inspections • Compliance monitoring If these requirements are violated, developers risk enforcement actions and potential loss of program benefits. Page 18 of 32 Additional Safeguards in this Ordinance The ordinance also requires annual reporting to the City, including: • Annual audited accounting report • Certified statement identifying affordable units • Additional documentation if requested by the City Assessor Projects that violate the agreement or change the development without approval can lose eligibility. Page 19 of 32 Who Does NOT Qualify? Developments with less than 30% affordable units Properties already receiving a PILOT Projects that change their scope without approval Projects seeking different terms than this ordinance provides (time, affordability requirements etc.) Those projects would still require Council action or would not qualify under this ordinance. Page 20 of 32 Current 10% PILOT Proposed 4% PILOT Ordinance May be approved administratively after a complete application Establishes a predictable approval process for qualifying 4% and mayoral support. LIHTC developments through ordinance. Developers must still meet all eligibility requirements established Developers must still submit a complete application to the City. by the ordinance. Specifically applies to qualifying 4% LIHTC developments Available under Lansing's existing PILOT process. reserving at least 30% of units for low- or moderate-income households. Council establishes the policy once through ordinance. Qualifying PILOT requests below 10% currently require:• Committee projects follow the objective standards established by Council review• Public hearing• Individual City Council approval rather than requiring a new ordinance for each project. Creates a consistent, transparent process for qualifying 4% LIHTC Approval process differs depending on the requested service projects while maintaining existing affordability and compliance charge. requirements. Why Create a 4% PILOT if Lansing Already Has a 10% PILOT? Page 21 of 32  Michigan Cities Already Use Affordable Housing PILOTs The question is not whether PILOTs exist. The question is how they are administered. City Approach Reported Outcomes Lansing (Proposed) By-right for qualifying 4% LIHTC Predictable pathway projects Detroit's Reported Results • 2,400 affordable housing units approved Detroit Fast Track administrative approval 2,400 units approved • 6,000 additional units in development 6,000 in pipeline • More than $1.2 billion in planned $1.2B+ investment investment Grand Rapids Standing ordinance 1,576 rental units supported Muskegon Formal PILOT policy Standardized criteria Key Takeaways Kalamazoo Established LIHTC process Coordinates with MSHDA ✓ Lansing is not inventing PILOTs. ✓ Michigan communities already use Act 346 PILOTs. ✓ Detroit demonstrates a streamlined approval model. Ferndale Standing ordinance Act 346 affordable housing Sources: Lansing proposed ordinance; City of Detroit; City of Grand Rapids. Page 22 of 32 Why I Introduced This Ordinance My goals are simple: • Create predictability • Encourage affordable housing production • Reduce unnecessary political uncertainty • Maintain affordability standards Page 23 of 32 Myth Fact This eliminates oversight City, State and federal oversight remain. This removes inspections City and LIHTC inspections still occur. Developers can ignore maintenance Maintenance requirements are mandatory. Only qualifying 4% LIHTC projects meeting the ordinance's criteria Every affordable housing project qualifies qualify. This is unprecedented Michigan cities already use 4% PILOTs. Myth vs. Facts Page 24 of 32 Questions Thank you. Page 25 of 32  CITY OF LANSING ORDINANCE 4% PILOT BY RIGHT DRAFT # 6 DATE: 5/9/2026 1 ORDINANCE NO. ___________ 2 An ordinance of the City of Lansing, Michigan, to amend Chapter 886 of the Lansing 3 Codified Ordinances, Sections 886.01-887.07, to authorize a property tax exemption for certain 4 eligible properties in exchange for a service charge in lieu of taxes rate of four percent of annual 5 shelter rents for up to 18 years, in conformity with the State of Michigan property tax exemption 6 alternative, authorized under 1966 PA 346, as amended; specifically MCL 125.1415a, which 7 permits a city to authorize by ordinance a rate below 10 percent of annual shelter rents. 8 THE CITY OF LANSING ORDAINS: 9 Section 1. That Chapter 886, Sections 886.01 through 886.07, of the Codified 10 Ordinances of the City of Lansing, Michigan, be and is hereby enacted to read as follows: 11 CHAPTER 886 – SERVICE CHARGE OF FOUR PERCENT OF ANNUAL SHELTER 12 RENTS FOR ELIGIBLE HOUSING DEVELOPMENT PROJECTS 13 886.01 Purpose. 14 It is acknowledged that it is a proper public purpose of the State and its political 15 subdivisions to provide housing for its residents of Low or Moderate Income and to 16 encourage the development of such housing by providing for a service charge in lieu of 17 property taxes in accordance with the State Housing Development Authority Act of 1966, 18 being Public Act 346 of 1966, as amended MCL 125.1401 et seq. The City is authorized by 19 such Act to establish or change the service charge to be paid in lieu of taxes by any or all 20 classes of housing exempt from taxation under such Act at any amount it chooses, not to 21 exceed the taxes that would be paid but for this Act. It is further acknowledged that such 22 housing for persons of Low or Moderate Income is a public necessity, and as the City will 1 Page 26 of 32  CITY OF LANSING ORDINANCE 4% PILOT BY RIGHT DRAFT # 6 DATE: 5/9/2026 1 be benefited and improved by such housing, the encouragement of the same by providing 2 certain real estate tax exemption for such housing is a valid public purpose. 3 886.02 Definitions. 4 (a) Act means the State Housing Development Authority Act, being Public Act 346 5 of 1966, as amended. 6 (b) Agreement means the “Payment in Lieu of Taxes Agreement” entered into 7 voluntarily between the City of Lansing administration and the Sponsor, identifying at 8 least: the legal identity of the Sponsor; the legal and qualitative description of the Housing 9 Development; the number of units in the Housing Development, and the anticipated years 10 of commencement and conclusion of the period of tax exemption. 11 (b) Annual Shelter Rents means the total collections during an agreed annual period 12 from all persons of low or moderate income, occupying the Housing Development 13 representing rents for occupancy, which rental amounts shall be exclusive of charges for 14 gas, electricity, heat or other utilities furnished to the occupants. 15 (c) Authority means the Michigan State Housing Development Authority. 16 (d) Housing Development or Development means a development that reserves at 17 least 30% of the total housing units for persons of Low or Moderate Income and such 18 elements of other housing, commercial, recreational, industrial, communal and educational 19 facilities as the Authority may determine will improve the quality of the development as it 20 relates to housing for persons of low and moderate income; for purposes of this Chapter, 21 the Development may not be located on property currently or previously receiving a tax 22 exemption under the Act; for purposes of any Development utilizing the tax exemption 2 Page 27 of 32  CITY OF LANSING ORDINANCE 4% PILOT BY RIGHT DRAFT # 6 DATE: 5/9/2026 1 provided by this Chapter, the Development shall be identified and described in the 2 Agreement. 3 (e) HUD means the Department of Housing and Urban Development of the United 4 States Government. 5 (f) Low Income Housing Tax Credit Program means the program established by 6 Section 42 of the United States Internal Revenue Code. 7 (g) Low or Moderate Income means low- or moderate-income eligibility under the 8 Authority Act or rules. 9 (h) Mortgage Loan means a loan that is Federally-aided (as defined in Section 11 of 10 the Act) or a loan or grant made or to be made by the Authority to the Sponsor for the 11 construction, rehabilitation, acquisition and/or permanent financing of a housing project 12 and secured by a mortgage on the housing project. 13 (i) Sponsor means a person or other entity with a Housing Development which is 14 financed or assisted pursuant to the Act. For purposes of any Development utilizing the tax 15 exemption provided by this Chapter, the Sponsor shall be identified and described in the 16 Agreement. 17 (j) Utilities means fuel, water, sanitary sewer and/or electrical service, which is paid 18 for by the Housing Development. 19 886.03 Establishment of annual service charge. 20 (a)The City acknowledges that for Developments utilizing the tax exemption 21 provided by this Chapter, and subject to the Authority’s review and approval of an 22 Agreement, Sponsor and the Authority will have established the economic feasibility of the 3 Page 28 of 32  CITY OF LANSING ORDINANCE 4% PILOT BY RIGHT DRAFT # 6 DATE: 5/9/2026 1 Housing Development in reliance upon the enactment and continuing effect of this section 2 and upon the qualification of the units of housing in the Housing Development for 3 exemption from all property taxes as established in this section. 4 (b) Subject to the conditions and requirements of this section and the Act, the units 5 in the Housing Development for persons of Low or Moderate Income identified in the 6 Agreement and the property on which they are constructed shall be exempt from all 7 property taxes for not more than 18 years, commencing on January 1 of the year 8 immediately following the first year that the Development has all necessary approvals and 9 is legally occupiable. 10 (c) In lieu of all said property taxes on the units in the Housing Development, the 11 Sponsor shall pay, and the City will accept, an annual service charge for public services in 12 the sum equal to four percent of the Annual Shelter Rents. 13 (d) The exemption provided under this section shall commence when the Sponsor 14 complies with Section 15a(2) of 1966 PA 346, as amended, codified as MCL 125.1415a(2), 15 which provides: the owner of a housing project eligible for the exemption shall file with the 16 local assessing officer (the City Assessor) a notification of the exemption, which shall be in 17 an affidavit form as provided by the Authority. The completed affidavit form first shall be 18 submitted to the Authority for certification by the Authority that the project is eligible for 19 the exemption. The owner then shall file or cause to be filed the certified notification of the 20 exemption with the local assessing officer before November 1 of the year preceding the tax 21 year in which the exemption is to begin. 4 Page 29 of 32  CITY OF LANSING ORDINANCE 4% PILOT BY RIGHT DRAFT # 6 DATE: 5/9/2026 1 (e) In addition to the certification required pursuant to Subsection 886.03(d), the 2 Sponsor shall provide the following documents and information, annually, in writing to the 3 City Assessor, relating to the Housing Development for the preceding year in which the 4 property tax exemption was in effect: 5 1. The annual audited accounting report for the payment in lieu of taxes; and 6 2. A certified statement identifying all the units rented to persons of Low or 7 Moderate Income; and 8 3. If requested by the City, proof that the Housing Development units have 9 not increased, decreased, or been altered in any form. 10 886.04 Limitation on the payment of the annual service charge. 11 Notwithstanding subsection 886.03, the service charge to be paid each year in lieu of 12 taxes for the part of the Housing Development project that is tax exempt and occupied by 13 other than Low or Moderate Income persons shall be equal to the full amount of the taxes 14 that would otherwise be due and payable on that portion of the Housing Development 15 project if the project were not tax exempt. 16 886.05 Payment of annual service charge. 17 The service charge in lieu of taxes, as established under this section, shall be payable 18 in the same manner as general property taxes are payable to the City, except that the 19 annual payment shall be made on or before July 1 of the year following the year upon 20 which such charge is calculated. Collection procedures shall be in accordance with the 21 provisions of the General Property Tax Act (1893 PA 206 as amended; MCL 211.1 et seq.) 22 886.06 Contractual effect. 5 Page 30 of 32  CITY OF LANSING ORDINANCE 4% PILOT BY RIGHT DRAFT # 6 DATE: 5/9/2026 1 Notwithstanding the provisions of Section 15(a)(5) of the Act to the contrary, a 2 contract between the City and the Sponsor with the Authority as third-party beneficiary 3 under the contract, to provide tax exemption and accept payment in lieu of taxes as 4 previously described, is effectuated by an Agreement for any Development utilizing the tax 5 exemption provided by this Chapter. 6 886.07 Duration. 7 Any such Agreement entered into under this Chapter shall remain in effect and 8 shall not terminate for 18 years, commencing with and including the first eligible tax year 9 as described in Subsection 886.03, provided that the Sponsor complies with the 10 requirements of the Act and this Chapter, and further provided that the Housing 11 Development continues to be rented to Low or Moderate Income persons at rents 12 determined under the low-income housing tax credit program, as the same maybe further 13 amended or superseded, or there is an Authority-aided or Federally-aided mortgage on the 14 Housing Development as provided in the Act, or the Authority or HUD has an interest in 15 the property; but in no event beyond December 31 of the 18th consecutive year, once 16 commenced. If: (a) the construction of the Housing Development project does not 17 commence or the Sponsor fails to obtain a Mortgage Loan within two years from the date 18 an Agreement is entered; or (b) transfer of title is not effectuated to Sponsor within two 19 years from the date an Agreement is entered; or (c) if the Sponsor changes the scope or 20 purpose of the number of units of housing within the Housing Development, identified in a 21 specific Agreement, without the consent of the City, by and through its representatives, and 22 in accordance with the requirements of the Lansing City Charter, and the Sponsor or other 6 Page 31 of 32  CITY OF LANSING ORDINANCE 4% PILOT BY RIGHT DRAFT # 6 DATE: 5/9/2026 1 responsible party does not cure the violation within 90 days after written notice is given to 2 the Sponsor, then that specific Agreement shall automatically expire, terminate and be of 3 no further effect. 4 Section 2. All ordinances, resolutions or rules, parts of ordinances, resolutions or rules 5 inconsistent with the provisions are repealed. 6 Section 3. Should any section, clause or phrase of this ordinance be declared to be 7 invalid, the same shall not affect the validity of the ordinance as a whole, or any part thereof 8 other than the part so declared to be invalid. 9 Section 4. This ordinance shall take effect on the 30th day after enactment, unless given 10 immediate effect by City Council. 7 Page 32 of 32