No. 2344 establishing a housing program and housing allocation area in the Northeast Neighborhood Development Area

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7. 'Any property taxes levied on property in Allocation Area No. 2 in 2007 for collection in 2008, and thereafter, except as otherwise provided in Sections 39 or 48 of the Act, by or for the benefit of any public body entitled to a distribution of property taxes on taxable property in Allocation Area No. 2 shall be allocated and distributed as follows: (a) The proceeds of the taxes attributable to the lesser of: (i) the assessed value of the property for the assessment date with respect to which the allocation and distribution is made; or (ii) the net assessed value of all the property, other than personal property, as finally determined for the assessment date immediately preceding the effective date of these allocation provisions (as adjusted under Section 39(h) of the Act), which assessment date is March 1, 2007; and, to the extent not included in the above, the proceeds of taxes attributable to property that is assessed as residential property under the rules of the Department of Local Government Finance regardless of the assessment date for such residential property shall be allocated to, and when collected, paid into the f~mds of the respective taxing units; (b) Property tax proceeds in excess of those described in Paragraph 7(a) shall be allocated to the Redevelopment District and, when collected, paid into an allocation fiu~d for Allocation Area No. 2. such fund hereinafter created by this Resolution. (c) The proceeds distributed to the Redevelopment District pursuant to Paragraph 7(b) hereof, shall he deposited in an allocation fund designated "City of South Bend, Indiana, Department of Redevelopment, Northeast Neighborhood Development Area, Allocation Area #2 Allocation Fund" (the "Allocation Fund"). and may be used only as provided for in the Act for purposes related to the accomplishment of the Housing Program, including to (i) construct, rehabilitate, or repair residential units within Allocation Area No. 2; (ii) constrict, reconstruct, or repair any infrastructure (inchding streets, sidewalks, and sewers) within or serving Allocation Area No. 2; (iii) acquire real property and interests in real property within Allocation Area No. 2; (iv) demolish real property within Allocation Area No. 2; (v) provide financial assistance to enable individuals and families to purchase or lease residential units within Allocation Area No. 2, but only to those individuals and families whose income is at or below the county's median income for individuals and families, respectively; (vi) provide financial assistance to neighborhood development corporations to permit them to provide financial assistance for the purposes described in (v); and (vii) provide each taxpayer in Allocation Area No. 2 a credit for property tax replacement as determined in Section 48(c) and (d) of the Act, but only if the City Common Council establishes the credit by ordinance adopted in the year before the year in which the credit is provided. (d) The proceeds distributed to the Redevelopment District pursuant to Paragraph 7(b) hereof, shall be deposited in the Allocation Fund and may be used only as provided for in the Act, and more particularly to accomplish the following for property that is residential in nature (i) pay the principal of and interest on any BDDBOI 4766100v2 - S -