(A) Housing developments found by the City Commission to be qualified for tax exempt status and the property on which they shall be constructed shall be exempt from all property taxes from and after the commencement of occupancy. The City, acknowledging that the sponsor and the Authority, in the case of a sponsor receiving a mortgage loan from the Authority, shall have established the economic feasibility of a housing development in reliance upon the enactment and continuing effect of this chapter and the qualification of the housing development for exemption from all property taxes and a payment in lieu of taxes as established in this chapter, agrees to accept payment of an annual service charge for public services in lieu of all property taxes.
(B) The annual service charge for qualified housing developments for which construction or rehabilitation is initiated after January 1, 1990 but prior to January 1, 2002 shall be as follows: The service charge for:
(1) Authority financed or federally-aided housing developments for elderly persons shall be equal to 4% of the difference between the annual shelter rents actually collected and utilities.
(2) Authority financed or federally-aided housing developments intended for persons of low income shall be equal to 10% of the difference between the annual shelter rents actually collected and utilities.
(C) The annual service charge for qualified housing developments for which construction or rehabilitation is initiated on or after January 1, 2002 shall be as follows: The service charge for:
(1) Authority financed or federally-aided housing developments for elderly persons shall be equal to 0% of the difference between the annual shelter rents actually collected and utilities.
(2) Authority financed or federally-aided housing developments intended for persons of low income shall be equal to 10% of the difference between the annual shelter rents actually collected and utilities.
(3) The authorization of the 0% service charge is within the discretion of the City Commission. In the event that a qualified housing development is denied the 0% service charge, the project shall receive authorization for a 10% service charge, or such service charge between 0% and 10% as the City Commission determines is appropriate.
(4) For each qualified housing development for which construction or rehabilitation is begun after January 1, 2002, the City may by resolution grant tax exempt status. The resolution by the City shall be based on the criteria in § 155.07, and shall be effective on adoption.
(D) The term “low income” as used in this chapter shall be the same as “low income persons and families” as defined in Section 15(a)(7) of the Act.
(Ord. 490-02-02, passed 2-18-02; Am. Ord. 566-05-06, passed 5-15-06)