(A) Subject to the provisions of this article, the housing development project and the housing development location shall be exempt from all property taxes for the period specified in § 64-19. The city acknowledges that the sponsor and the Authority have established the economic feasibility of the housing development project in reliance upon the enactment and continuing effect of this agreement and qualification of the housing development project for the exemption from all property taxes and a payment in lieu of taxes as established in this article. Therefore, in consideration of the sponsor's offer to construct, own and operate the housing development project, the city has agreed to accept payment of an annual service charge, as defined below, for public services in lieu of all ad valorem property taxes as provided for in § 64-15(C) provided the sponsor furnishes proof, on an annual basis upon request by the city, that the number of qualified low income units in the housing development project have not increased, decreased, or been altered in any material form unless the city has otherwise amended the provisions of this article.
(B) In addition to the annual certified verification requirement in § 64-15(A), the tax exemption shall commence upon the acquisition of the housing development location by the sponsor. The sponsor of the housing development project eligible for exemption, or the city as appropriate and necessary, shall file with the local assessing officer a certified notification of the exemption, which shall be in an affidavit form by either the Authority, the city and/or the sponsor as appropriate. The completed affidavit form first shall be submitted to the Authority for certification by the Authority that the housing development project is eligible for the exemption. The sponsor and/or the city shall file or cause to be filed the certified notification of the exemption with the local assessing officer as soon as practically possible.
(C) The annual service charge shall be equal to 10% of the difference between the annual shelter rent actually collected and utilities (the "service charge").
(Ord. 2017-01, passed 2-27-2017; Ord. 2020-09, passed 12-14-2020)