200                                                LAWS OF MARYLAND                                      Ch. 8

2.  ARE FINANCED FOR AT LEAST 95% OF THE
COST FROM LOAN FUNDS PROVIDED UNDER THE NATIONAL HOUSING ACT OF
1959 FOR SENIOR CITIZEN HOUSING PROGRAMS; AND

3.  ARE OPERATED ON A NONPROFIT BASIS WITH'
THE REVENUES FROM THE OPERATION OF THE HOUSING AND FACILITIES
CONTROLLED BY THE LOAN PROGRAM IN ORDER NOT TO PRODUCE ANY NET
INCOME.

(B)  PROCEDURE FOR' EXEMPTION.

THE REAL PROPERTY DESCRIBED IN SUBSECTION (A) OF THIS
SECTION MAY BE EXEMPT FROM PROPERTY TAX ONLY IF:

(1)  THE GOVERNING BODY OF THE SUBDIVISION WHERE THE
REAL PROPERTY IS LOCATED APPROVES AN AGREEMENT BETWEEN THE
SUBDIVISION AND THE OWNER; AND

(2)  UNDER THE AGREEMENT THE OWNER PAYS THE
SUBDIVISION A NEGOTIATED AMOUNT IN LIEU OF PROPERTY TAX.

(C)  ABATING OR REDUCING PREVIOUS TAXES.

AN AGREEMENT UNDER SUBSECTION (B) OF THIS SECTION MAY
PROVIDE FOR ABATING OR REDUCING PROPERTY TAX PREVIOUSLY IMPOSED
ON THE REAL PROPERTY.

(D)  DISTRIBUTION OF PAYMENTS.

ANY PAYMENT NEGOTIATED UNDER THIS SECTION IN LIEU OF THE
PROPERTY TAX SHALL BE DIVIDED BETWEEN THE STATE AND THE
SUBDIVISION, IN THE RATIO THAT THE TAX RATE OF THE STATE AND THE
SUBDIVISION EACH BEARS TO THE TOTAL OF THE TAX RATES OF THE STATE
AND THE SUBDIVISION.

REVISOR'S NOTE: This section is new language derived
without substantive change from former Art. 81, § 9(a)
and (n).

In subsections (a) and (b) of this section, the word
"owner" is substituted for the former references to
"owned by any taxpayer", "such person or corporation",
and "taxpayer", for clarity and brevity.

Subsection (a)(1) of this section is revised as a
definition of "essential service facilities", for
brevity.

In subsection (a)(2)(ii) of this section, the former
word "structures" is deleted as unnecessary in light
of the word "housing".

In subsection (a)(2)(ii)2. of this section, the former
phrase "as amended", which modified the "National