(A) In consideration of the sponsor’s offer, which is subject to the receipt of a commitment for a mortgage loan from MSHDA, for construction and permanent financing of the housing development, the city agrees to accept payment of an annual service fee for public services in lieu of all property taxes on the elderly portion of the housing development. The sponsor agrees to pay the service fee as provided in this subchapter and under the Act. The annual service charge for the elderly portion of the housing development, and the property on which it is located, shall be 4% of the difference between contract rents actually collected and the utility costs paid by that portion of the housing development.
(B) The annual service charge 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 July 1 of each year.
(1990 Code, § 1.235)