(A) The city acknowledges that the sponsor and USDA-RD and/or the Authority have established the economic feasibility of the housing development in reliance upon the enactment and continuing effect of this subchapter and the qualification of the housing development for exemption from all property taxes and payment of an annual service charge in lieu of taxes in an amount established in accordance with this section. In consideration of the sponsor’s offer to construct, own, and operate the housing development, the city agrees to accept payment of an annual service charge for public services in lieu of all ad valorem property taxes that would otherwise be assessed to the housing development under state law.
(B) Effective upon the adoption of this subchapter and subject to the receipt by the city of the “notification of exemption” (or such other similar notification) by the sponsor and/or the Authority, the annual service charge shall be equal to 4% of annual shelter rent.
(C) The housing development, and the property on which it shall be constructed, shall be exempt from all property taxes from and after the commencement of construction of the housing development by the sponsor under the terms of this subchapter.
(Ord. 334, passed 2-13-2012)