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benefit with respect to a project if it were not exempt from fixation.
/ CC�77
\c): The term "Shelter hent" shall mean the total of all charges to all
tenants of a project for dwelling rents and nondwelling rants (excluding
all other income of such projects) less the cost to the Local Authority
of all swelling and nondwelling utilities.
(d) The term "Slum" shall mean any area where dwellings predominate which,
by reason of dilapidation, overcrowding, faulty arrangement or disign, lack
of 'ventilation, light of sanitation facklities, or anh combination of Hese
factors, .are detrimental to safety, health, or morals.
2. The Local Authority shall endeavor (a) to secure a contract or contracts
with the PITA for loans and annual contributions covering .one or more projects
comprising approximately 110 units 4f low -rent housing and (b) to develop and
administer such projects, each of which shall be located within the corporate
limits of the Municipality. The obligations of the parties hereto shall apply
to each such project.
3. (a) Under the constitution and statutes of the City of Georgetown, Texas,
all projects are exempt from all real and personal property taxes and
special assessments levied or imposed by any Taxing Body. With respe t
to any project, so long as either (i) such project is owned by a public
body'or governmental agency and is used for low rent hosuing purposes, or
(ii) any contract between the Local Authority and the PJA for loans or
annual contributions, or both, in connection with such project remains in
force and effect, or (iii) any bonds issued in connection with such projects
or any monies due to the PIIA in connection with such project remain unpaid,
which ever preriod is thelongest, the Municipality agrees that it will not
levy or impose any real or personal property taxes or special assessments
Spon such project or upon the Local Authority with respect thereto. During
such peridd, the Local Authority shall make annual payments, (herein called
YPayments in Lieu of Tones") in lieu of such taxes and special assessments
and in payment for the public services and facilities furnished from time
to time without other cost or charge for or with respect to shuch project.
(b) Each such annual Payment in lieu of Taxes shall be made after the end of
of the fiscal year established for such Project, and shallbe in an amount
equal to either (i) the percent,(10%) of the aggregage Shelter Rent charged
by the Local Authority in respect to such Project during such fiscal year,
or (ii) the amoutn permitted to be paid by applicable State law in effect
on the dote such pa ment is made, whichever amount is the lower. For the
purpose of computing the Federal Annual Contributid►n and Payment in Lieu
of Taxes, all projects which are covered by the same contract with the PITA
for annual contributions and which have 000peration agreeements subnect to
limitation as expressed in clause, (ii) above, with theidentical Taxing
Bodies shall be treated collectively as a single project.
(c) The Local Authority shall distribute the Payments in Lieu if Taxes
smaong the taxing bodies in the proportion which the real property taxes
whish would have been paid to each TaxinG Body for such year if the
Project were not exempt from taxation to the total real property taxes whch
mould have been paid to all the Taxing Bodies for such year ff the Project
sere not exempt from taxation, Provided, however, That no payment for any
year shall be made to any Taxing Body in excess of the amount of the real
property taxed which would have been gpaid to such Taxing Bodies for such
year if the Project were not exempt from taxation.