J. MILLARD TAWES, Governor                      417

WHEREAS, THE GENERAL ASSEMBLY OF MARYLAND
HAS DETERMINED THAT IT IS NECESSARY AND ADVIS-
ABLE TO GRANT TO LOCAL SUBDIVISIONS THE AUTHORITY
TO ENTER INTO AGREEMENTS WITH PRIVATE NONPROFIT
ORGANIZATIONS FOR PAYMENTS IN LIEU OF TAXES ON
REAL PROPERTY OWNED BY THEM, PROVIDED THAT SUCH
REAL PROPERTY IS RESTRICTED TO THE PURPOSES SET
FORTH ABOVE; AND

Whereas, the General Assembly of Maryland desires to encourage
eligible nonprofit corporations to create such housing facilities for
aged and handicapped persons, and desires to help assure the ability
of such nonprofit corporations to operate and manage such housing
and related essential facilities by minimizing public taxes and
charges levied against them; now, therefore,

Section 1. Be it enacted by the General Assembly of Maryland,

That a new section 12H be and it is hereby added to Article 81

THAT A NEW SUBSECTION 7(A)(I) BE AND IT IS HEREBY
ADDED TO SECTION 9 OF ARTICLE 81 of the Annotated Code of
Maryland (1965 Replacement Volume), title, "Revenue and Taxes,"

subtitle "What Shall be Taxed and where," to follow immediately

after Section 12G thereof, and to TITLE "REVENUE AND
TAXES," SUBTITLE "EXEMPTIONS—HOSPITALS, CHARI-
TABLE INSTITUTIONS, ETC.," TO FOLLOW IMMEDIATELY
AFTER SUBSECTION 7(A) THEREOF, AND TO read as follows:

12H.

(a) There is hereby granted and created a tax credit equal to

the sum of ordinary taxes levied upon assessments of all property
of nonprofit corporations described in subsection (b) hereof owning

newly constructed housing facilities for elderly or handicapped

families financed, constructed and operated pursuant to Section
202 of the National Housing Act of 1959, as amended, and such
credit shall apply to all taxable years beginning after June 30, 1966.

(b) The tax credit created by this section shall apply to non-

profit corporations exempt from income taxation under the pro-

visions of Section 288(g) of this Article, engaged solely in the con-

struction operation and management of multi-family rental housing

structures and such related facilities as dining halls, community

rooms, infirmaries and other essential service facilities newly con-
structed after September 23, 1959, ninety-five per cent (95%) or

more of the cost of which was financed under Section 202 of the

National Housing Act of 1959, as amended, and which rent housing
facilities exclusively to elderly or handicapped families.

(c) For the purpose of this section, "construction" excludes al-
teration, conversion, rehabilitation, renovation or remodeling; "cost"
means cost of construction of multi family housing structures and

other related facilities and of the land on which it is located, includ-

ing necessary on-site and off-site improvements: "elderly or handi-

capped families" means families which consist of two or more per-

sons and the head of which (or his spouse) is 62 years of age or
"

over or is handicapped, and such term also means a single person

who is 62 years of age or over or is handicapped and a person shall
be considered handicapped if such person has a physical impairment