(a) Under the Constitution and statutes of the State, all projects are exempt from real and personal property taxes levied or imposed by any taxing body. The City warrants and agrees that, with respect to any project, so long as either:
(1) Such project is used for low-rent housing purposes and owned by the City; or
(2) Any contract between the City and the Government for loans or annual contributions, or both, in connection with such project remains in force and effect; or
(3) Any bonds issued in connection with such project remain outstanding, whichever period is the longest, the City will not levy or impose any real or personal property taxes upon such project.
(b) In recognition of the fact that Section 1437.d(d), Title 42, United States Code, provides that payments in lieu of taxes normally required shall be reduced in the amount prescribed by State law or as is agreed in a local cooperation agreement, and in further recognition of the facts that State law does not currently require in-lieu-of-tax payments to be made by a city acting as a public housing agency, and that this chapter constitutes and represents the local cooperation agreement of the City for its projects, the City, being the Parma Public Housing Agency, shall not make payments in lieu of taxes to any other governmental entity. However, if the State, in the future, enacts such legislation and it is found to be binding upon the City, the City shall make such payments to the extent then required by law. Further, if any project is, for any reason, no longer owned by the City, then in-lieu-of-tax payments shall be required to the extent then required by Federal law.
(Ord. 67-85. Passed 3-20-85.)