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| CITY OF
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: May 26, 2026 Title: Contract for Housing Exemption - Jackson
Hill Estates
Submitted by: Jake Eckholm, Development Department: Economic Development
Services Director
Brief Summary:
The PILOT for Jackson Hill Estates is expiring in March of 2027, and General Capital is requesting a 10
year extension.
Detailed Summary & Background:
The Village at Jackson Hillis a longtime senior housing LIHTC in the community that features some of
the lowest rents per square foot in the metro area. In March of 2027, the 25 year affordability period
will expire, which places the community on the regular tax rolls. General Capital is requesting a 10
year extension with a 4% PILOT as currently applies fo the site. They have recently been awarded a
Weatherization Program Grant from Mid Michigan Community Action in order to perform capital
improvements to the units such as new windows and other energy efficiency improvements. The
current PILOT payment is roughly 13-14,000 dollars per year.
The site will de facto revert to market rate, Unsubsidized units in the event of an expiration of the PILOT
and so staff recommends approval of the extension.
Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business
ls this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:
Amount Requested: Budgeted Item:
NA Yes No N/A | X
Fund(s) or Account(s): Budget Amendment Needed:
NA Yes No N/A X
Recommended Motion:
Motion to approve the Contract for Housing Exemption as presented, and to authorize the mayor
and clerk to sign
Approvals: Name the Policy/Ordinance Followed:
Immediate Division X Chapter 82 of the General Code of Ordinances
CITY OF MUSKEGON
FIRST AMENDED AND RESTATED
CONTRACT FOR HOUSING EXEMPTION
This Agreement between GenCap Village at Jackson Hill Limited Dividend Housing
Association, LLC, a Michigan limited liability company of 6938 North Santa Monica Boulevard,
Fox Point, WI 53217 (the “Owner”) and the City of Muskegon, 933 Terrace Street, Muskegon MI
(the “City’’) is made pursuant to the following terms:
RECITALS
A. Owner owns The Village at Jackson Hill located in the City of Muskegon which is
a low-income housing project (for the elderly) as defined in City Ordinance 2-6(e)(3), (the
“Project”).
B. The Project was granted a tax exemption for a twenty-five (25) year period on
March 13, 2002, which would expire on March 13, 2027.
C. The Owner has entered a Weatherization Assistance Program (“WAP”) with Mid-
Michigan Community Action Agency. A copy is attached as Exhibit A.
D. The City encourages the rehabilitation of the said low-income housing project
which is identified by the working name of The Village at Jackson Hill.
E, The legal description of the Project if set forth in Exhibit B attached to this
Agreement.
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1. Grant of Exemption. As contemplated and pursuant to Act 346 of the Public Acts
of 1966, as amended, the State Housing Development Authority (the “Act’), the City hereby grants
an exemption from all property taxes attributable to the buildings which consist of rental units
offered to eligible low income persons and families as defined by the Michigan State Housing
Development Authority (the “Authority”) for an additional period of ten (10) years to then
terminate on March 13, 2037.
2. Term of Exemption. This exemption shall continue for the period of time the
housing units remain subject to income and rent restrictions pursuant to Section 42 of Internal
Revenue Codes of 1986, as amended (IRS Codes), or the Authority Regulatory Agreement not to
exceed 10 years. The City agrees to be contractually bound by this Agreement to honor the
exemption status of the proposed project as provided therein and in this Agreement for the entire
period during which the Project is financed by the Authority or subject to a low income housing
tax credit (““LIHTC”) Regulatory Agreement under Section 42 of the IRS Codes, provided that the
said loan or a loan originally financed by the low income housing tax credits continues outstanding
and not in default as more particularly set for in Sections 2-6 subsection (2) of the Ordinance.
3. Responsibilities of the Owner. The Owner agrees to perform the following:
3.1 The Owner shall pay the service charge and payment in lieu of taxes set
forth in Section 2-6(F) of the Ordinance in a timely manner (on or before July 1 of each
year during the time the exemption is in effect). For said purposes the Owner recognizes
and will abide by all of the collection provisions of the ordinance, including without
limitation, the acceptance of the lien provisions status of the payments in lieu of taxes in
the event of default as set fort in 2-6(h), (i) and (j) of the Ordinance. The service charge
shall equal four percent (4%) of the contract rents charged for the total of all units in the
exempt housing project, whether the units are occupied or not and whether or not the rents
are paid.
3.2 The Owner agrees to file all information required by the Ordinance and
further to meet its obligations to the Authority in connection with the Authority’s
administration of the LIHTC program.
4. Term. This Agreement shall continue in effect for the entire period of eligibility
for the exemption as set forth herein. The City considers itself bound by this Agreement for the
entire term hereof.
5. Interpretation of Financing. The City agrees that the financing of the mortgage
by the use of low income housing tax credits or the existence of the LIHTC Regulatory Agreement
constitutes financing of the loan by the Authority in fulfillment of the requirements of Section 2-
6(e)(3) of the Ordinance.
6. Third Party Beneficiary. This Agreement shall benefit the parties named,
including the limited dividend housing association to be formed and further shall benefit the
Authority, or such other mortgagee as may have financed the housing project, which may enforce
this Agreement, both as its interest may appear, and on behalf of the Developer and its successors
‘and assigns. No other party is a beneficiary of this Agreement.
7. Counterparts. This Agreement may be executed in several counterparts and an
executed copy hereof may be relined upon as an original.
8. Binding and Benefit. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, administrators, personal representatives,
successors and assigns.
9. Severability. If any of the provisions of this Agreement, or the application thereof
to any person, party or circumstances, shall, to any extent, be invalid or unenforceable, the
remainder of this Agreement, or the application of such provision or provisions to persons, parties
or circumstances other than those as to whom or which it is held invalid or unenforceable, shall
not be affected thereby, and every provision of this Agreement shall be valid and enforceable to
the fullest extent permitted by law
10. Effective Date. The effective date of this Agreement is the date that Owner or its
assignee acquires the Property.
IN WITNESS WHEREOF, the parties have signed this Agreement on the dates indicated below.
Dated: aon 3 5 2026 CITY OF MUSKEGON
By: Vir~ Wave
“Ken J ohulson, Mayor
Dated: Qs wax _, 2026 QQ ddssstauuse
NS
Ann Marie Meisch, Clerk
Dated: June rf? , 2026 GENCAP VILLAGE AT JACKSON LIMITED
DIVIDEND HOUSING ASSOCIATION, LLC, a
Michigan limited liability company
By: GenCap Village at Jackson Hill MM,
LLC, its Managing Member
By: General Capital Management, Inc., its
Manager
By: LS ) Uw
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