§ 27-40. Establishment of annual service charge.

(a)

Housing developments for 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 reliance upon the enactment and continuing effect of this division and the qualification of the housing developments for exemption from all property taxes and a payment in lieu of taxes as established in this division, will accept payment of an annual service charge for public services in lieu of all property taxes.

(b)

Subject to subsection (d), the sponsor of a new construction housing project exempt from taxation pursuant to this division shall pay to the city an annual service charge for public services in lieu of all taxes an amount equal to the greater of the tax on the property on which the project is located for the tax year before the date when construction or rehabilitation of the project was commenced or ten (10) percent of the annual shelter rents obtained by the project.

(c)

Subject to subsection (d), the sponsor of a rehabilitation housing project exempt from taxation pursuant to this division shall pay to the city an annual service charge for public services in lieu of all taxes an amount equal to the lesser of the tax on the property on which the project is located for the tax year before the date when construction or rehabilitation of the project was commenced or ten (10) percent of the annual shelter rents obtained by the project.

(d)

The annual service charge shall not exceed an amount equal to the taxes that would be paid but for the tax exemption granted under this division.

(Ord. No. 342, § 5, 7-13-98; Ord. No. 346, § 5, 1-25-99)