(A)   Annual service charge. Housing developments for elderly persons of low income/persons of low income and the property on which they shall be constructed shall be exempt from all property taxes from and after the commencement of construction. The city, acknowledging that the sponsor and the Authority, in the case of a sponsor receiving a mortgage loan from the Authority, have established the economic feasibility of the housing development in reliance upon the enactment and continuing effect of this chapter and the qualification of the housing developments for exemption from all property taxes, and a payment in lieu of taxes as established in this chapter, will accept payment of an annual service charge for public services in lieu of all property taxes. However, this does not apply to any city-provided utilities and rubbish removal. The annual service charge shall be equal to between 4% and 10% of the difference between contract rents actually collected and utilities for federally-aided housing developments, or the difference between the annual shelter rent actually collected and utilities for Authority-aided housing developments.
   (B)   Payment. The service charge in lieu of taxes as determined under this section shall be payable in the same manner as general property taxes are payable to the city, except that the annual payment shall be paid on or before September 15 of each year.
(Ord. 291, passed 6-15-98)