City Ordinance Revisions Ord. 2538 Amend PILOT Ordinance

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                                      City of Muskegon
                                 Muskegon County, Michigan
                                Ordinance Amendment No. 2538

THE CITY OF MUSKEGON HEREBY ORDAINS:

Section 82-46 of Chapter 82 of the Code of Ordinances of the City of Muskegon, Michigan,
concerning definitions related to Residential Housing Projects and Payments in Lieu of Taxes
(PILOT) is amended to read as follows:

Sec. 82-46.    Definitions.

The following words, terms and phrases, when used in this division, shall have the meanings
ascribed to them in this section, except where the context clearly indicates a different meaning:

Authority means the state housing development authority.

Contract rents mean all rents in the housing project expected either directly from a tenant or by
subsidy, vendor payments or paid by a government or other assisting entity on behalf of a tenant
to the owner or owner's designee or agent of a housing project. Contract rents include the rental
amounts to be currently charged for units in the housing project, whether a unit is vacant or not,
and whether or not the rent is actually paid. Contract rents also include the rentals to be paid for
additional facilities by tenants, such as carports or garages, and further include miscellaneous
income, such as income from vending machines or laundry equipment. The portion of additional
facility rents and miscellaneous income to be attributed to contract rents shall be determined by
reference to the floor plan of the facility which includes and clearly exhibits the housing project
(therefore the exempt portion of the facility), and the portion of contract rents shall be determined
by the ratio of the housing project square footage to the entire square footage of the facility. The
term "contract rents" does not include charges for utilities.

Elderly persons mean persons determined by authority guidelines, rules, and practices to have
attained the age and have the status to constitute them as elderly persons

Housing project means a residential facility consisting of rental units offered to the following
persons; it does not mean the portion of any facility which is not so occupied by:

       (1) Elderly persons as defined in this section.

       (2) Low income persons and families as defined by the authority.

       (3) Workforce Housing as defined by in this section.


HUD means the United States Department of Housing and Urban Development.
Low income persons and families mean all low income persons and families included in the
definitions found at Section 15a(8) of Public Act No. 346 of 1966 (MCL 125.1415a(8)).



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Mortgage loan means a loan made by the authority or insured by HUD to the sponsor for the
construction and/or permanent financing of a housing project.
Service charge means the same as payment in lieu of taxes.
Sponsor means a developer of a housing project. The term "sponsor" includes an applicant for
exemption under this division.
Utilities mean public water, public sanitary sewer, gas or electric service. The term "utilities" does
not include cable or other television services, telephone or communication utilities or solid waste
services.
Workforce Housing means rental units or other housing options included in the definitions found
at Section 15a(10)(d) of Public Act No. 346 of 1966 (MCL 125.1415a(10)(d)).


This Ordinance Adopted:

Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, Keener, and German
Nays: None

Adoption Date:         May 27, 2025
Effective Date:        June 13, 2025
First Reading:         May 27, 2025
Second Reading:        N/A


                                                            CITY OF MUSKEGON

                                                       By: ______________________________
                                                          Ann Marie Meisch, MMC
                                                          Clerk, City of Muskegon




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                                          CERTIFICATE

       The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon County,
Michigan, does hereby certify that the foregoing is a true and complete copy of an ordinance
adopted by the City Commission of the City of Muskegon, at a regular meeting of the City
Commission on the 27th day of May, 2025, at which meeting a quorum was present and remained
throughout, and that the original of said ordinance is on file in the records of the City of Muskegon.
I further certify that the meeting was conducted, and public notice was given, pursuant to, and in
full compliance with Act No. 267, Public Acts of Michigan of 1976, as amended, and that minutes
were kept and will be, or have been made available as required thereby.

                                                       CITY OF MUSKEGON



Published: June 3, 2025                               By:
                                                      Ann Marie Meisch, MCC
                                                      Clerk, City of Muskegon

 Publish:        Notice of Adoption to be published once within ten (10) days of final adoption.




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                                   CITY OF MUSKEGON
                                  NOTICE OF ADOPTION

TO: ALL PERSONS INTERESTED

       Please take notice that on May 27, 2025, the City Commission of the City of Muskegon
adopted an amendment to Section 82-46, summarized as follows:

Section 82-46 amends several definitions related to Residential Housing Projects and Payments in
Lieu of Taxes (PILOT), more specifically:

       Housing project means a residential facility consisting of rental units offered to the
       following persons; it does not mean the portion of any facility which is not so occupied by:

              (1) Elderly persons as defined in this section.

              (2) Low income persons and families as defined by the authority.

              (3) Workforce Housing as defined by in this section.

       Low income persons and families mean all low income persons and families included in
       the definitions found at Section 15a(8) of Public Act No. 346 of 1966 (MCL 125.1415a(8)).


       Workforce Housing means rental units or other housing options included in the definitions
       found at Section 15a(10)(d) of Public Act No. 346 of 1966 (MCL 125.1415a(10)(d)).


Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of the City
Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan, 49440 during regular business
hours.

       This ordinance amendment is effective ten (10) days from the date of this publication.


                                                     CITY OF MUSKEGON

Published: June 3, 2025                              By:
                                                     Ann Marie Meisch, MCC
                                                     Clerk, City of Muskegon




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