202                                                LAWS OF MARYLAND                                      Ch. 8

3. A NONPROFIT HOUSING CORPORATION AS
DEFINED IN ARTICLE 44A, § 3 OF THE CODE; AND

(II) THE OWNER OF THE REAL PROPERTY IS ENGAGED
SOLELY IN CONSTRUCTING, OPERATING, OR MANAGING RENTAL HOUSING AND
OTHER RELATED ESSENTIAL SERVICE FACILITIES THAT:

1.  ARE SUBSTANTIALLY COMPLETED OR
SUBSTANTIALLY REHABILITATED ON AND AFTER JULY 1, 1973, OR, IN
MONTGOMERY COUNTY, SUBSTANTIALLY COMPLETED OR SUBSTANTIALLY
REHABILITATED ON AND AFTER JANUARY 1, 1968;

2.  ARE FINANCED UNDER A GOVERNMENT
PROGRAM THAT PROVIDES HOUSING FOR LOW INCOME FAMILIES; AND

3.  ARE OPERATED ON A NONPROFIT BASIS WITH
THE REVENUES FROM THE OPERATION OF THE HOUSING AND FACILITIES
CONTROLLED UNDER THE GOVERNMENT 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 POLITICAL SUBDIVISION
WHERE THE REAL PROPERTY IS LOCATED APPROVES AN AGREEMENT BETWEEN:

(I)  THE POLITICAL SUBDIVISION AND THE OWNER FOR
REAL PROPERTY DESCRIBED IN SUBSECTION (A)(2)(I)1. AND 2. OF THIS
SECTION; OR

(II)  THE COUNTY AND, WHERE APPLICABLE,
MUNICIPAL CORPORATION AND THE OWNER FOR REAL PROPERTY DESCRIBED
IN SUBSECTION (A)(2)(1)3. OF THIS SECTION; AND

(2)  UNDER THE AGREEMENT THE OWNER PAYS THE POLITICAL
SUBDIVISION OR THE COUNTY AND, WHERE APPLICABLE, MUNICIPAL
CORPORATION A NEGOTIATED AMOUNT IN LIEU OF THE PROPERTY TAX.

(C)  REFUND OF TAXES.

(1)  EXCEPT AS PROVIDED UNDER PARAGRAPH (2) OF THIS
SUBSECTION, AN AGREEMENT UNDER SUBSECTION (B) OF THIS SECTION MAY
PROVIDE FOR ABATING OR REDUCING PROPERTY TAX PREVIOUSLY IMPOSED
ON THE REAL PROPERTY.

(2)  FOR AN AGREEMENT CONCERNING REAL PROPERTY
DESCRIBED UNDER SUBSECTION (A)(2)(I)3. OF THIS SECTION, THE
ABATEMENT OR REDUCTION OF PROPERTY TAX PREVIOUSLY IMPOSED IS FROM
THE DATE DURING THE TAXABLE YEAR WHEN THE INSTRUMENT TRANSFERRING
TITLE TO THAT REAL PROPERTY WAS RECORDED.

(D)

DISTRIBUTION OF PAYMENTS.