HARRY HUGHES, Governor

205

(II)  THE REAL PROPERTY IS EXEMPTED BY AN
AGREEMENT IN EFFECT ON OR AFTER JULY 1, 1976, WITH THE MAYOR AND
CITY COUNCIL OF BALTIMORE, WHICH AGREEMENT PROVIDES FOR THE OWNER
TO PAY A NEGOTIATED SUM IN LIEU OF BALTIMORE CITY PROPERTY TAX;

(III)  THE REAL PROPERTY IS OWNED BY:

1.  A LIMITED DISTRIBUTION PARTNERSHIP; OR

2.  A LIMITED DISTRIBUTION PARTNERSHIP
THAT:

A.  ACQUIRES EQUITABLE OWNERSHIP TO
RECEIVE SUBSTANTIAL FINANCIAL ASSISTANCE; AND

B.  IS APPROVED BY THE UNITED STATES
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AND ANY OTHER
APPROPRIATE GOVERNMENT AGENCY; AND

(IV)  THE STRUCTURES AND FACILITIES OF THE
PROPERTY ARE GOVERNMENTALLY CONTROLLED AS TO RENTS, CHARGES,
RATES OF RETURN, AND METHODS OF OPERATION SO THAT THE REAL
PROPERTY OPERATES ON A NONPROFIT OR LIMITED DISTRIBUTION BASIS.

(3) IF THE STRUCTURE AND FACILITIES OF THE REAL
PROPERTY ARE USED PREDOMINANTLY FOR RESIDENTIAL PURPOSES, THE
REAL PROPERTY MAY CONTAIN SERVICE FACILITIES TO SERVE ITS
OCCUPANTS AND THE SURROUNDING NEIGHBORHOOD.

(B)  WHEN EXEMPTION BEGINS.

THE REAL PROPERTY DESCRIBED IN SUBSECTION (A) OF THIS
SECTION IS EXEMPT FROM BALTIMORE CITY PROPERTY TAX WHEN THE OWNER
OF THE REAL PROPERTY AND THE GOVERNING BODY OF BALTIMORE CITY
AGREE ON THE PAYMENT THAT THE OWNER SHALL MAKE TO BALTIMORE CITY
IN LIEU OF BALTIMORE CITY PROPERTY TAX ON THE REAL PROPERTY.

(C)  ABATEMENT OR REDUCTION OF TAXES.

(1)  EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS
SUBSECTION, AN AGREEMENT UNDER SUBSECTION (B) OF THIS SECTION MAY
PROVIDE FOR ABATING OR REDUCING BALTIMORE CITY PROPERTY TAX
PREVIOUSLY IMPOSED ON THE REAL PROPERTY IF THE AGREED PAYMENT IN
LIEU OF BALTIMORE CITY PROPERTY TAX IS MADE FOR ANY PERIOD FOR
WHICH THE TAX IS ABATED OR REDUCED.

(2)  BALTIMORE CITY PROPERTY TAX ON THE REAL PROPERTY
FROM BEFORE THE JULY 1, 1976 TAXABLE YEAR MAY NOT BE ABATED OR
REDUCED.

REVISOR'S NOTE: This section is new language derived
without substantive change from former Art. 81, § 9(a)
and (n-2).