Authorizing execution of a cooperation agreement

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as either (i) such Project is owned by a public body or governmental agency and is used for low-rent housing pur- poses, or (ii) any contract between the Local Authority and the Government for loans or annual contributions, or both, in connection with such projects remains in force and effect, or (iii) any bonds issued in connection with such Project or any monies due to the Government in connec- tion with such Project remain unpaid, whichever period is the longest, the Municipality agrees that it will not levy or impose any real or personal property taxes (or special assessments) upon such Project or upon the Local Authority with respect thereto. During such period, the Local Author- ity shall make annual payments (herein called "Payments in Lieu of Taxes") 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 such Project. (b) Each such annual Payment in Lieu of Taxes shall be made after the end of the fiscal year established for such Project, and shall be in an amount equal to either (i) ten percent (10%) of the Shelter Rent charged by the Local Authority in respect to such Project during such fiscal year, or (ii) the amount permitted to be paid by applicable state law in effect on the date such payment is made, whichever amount is the lower. (c) The Payments in Lieu of Taxes shall be distributed among the Taxing Bodies in the proportion which the real property taxes which would have been paid to each Taxing Body for such year, if the Project were not exempt from taxation, bears to the total real property taxes which would have been paid to all of the Taxing Bodies for such year, if the Project were not exempt from taxation, or in such other manner as provided by state statute; Provided, however, That no payment for any year shall be made to any Taxing Body in excess of the amount of the real property taxes which would have been paid to such Taxing Body for such year if the Project were not exempt from taxation. (d) Upon failure of the Local Authority to make any Payment in Lieu of Taxes, no lien against any Project or assets of the Local Authority shall attach, nor shall any interest or penalties accrue or attach on account thereof. 4. The Municipality agrees that, subsequent to the date of initiation (as defined in the United States Housing Act of 1937, as amended) of each Project and within five years after the completion thereof, or such further period as may be approved by the Government, and in addition to the number of unsafe or insanitary dwelling units which the Municipality is obligated to eliminate as a part of the low-rent housing Project (s) heretofore undertaken by the Local Authority, there has been or will be elimination (as approved by the Government) by demolition, condemnation, effective closing, or compulsory repair or improvement, of unsafe or insanitary dwelling units situated in the locality or metropolitan area in which such Project is located, substantially equal in number to the number of newly constructed dwelling units provided by such Project; Provided, that, where more than one family is living in an unsafe or insanitary dwelling unit, the elimination of such unit shall count as the elimination of units equal to the number of families accommodated therein; and Provided, further, That this paragraph 4 shall not apply in the case of (i) any Project devel- oped on the site of a Slum cleared subsequent to July 15, 1949, and that the dwelling units eliminated by the clearance of the site of such Project shall -2-