As set forth in the declaration and statement of intent herein, the association will be performing an essential governmental function in the exercise of the powers conferred upon it by this act, and the notes and bonds of the association issued pursuant to this act, and the income therefrom, including any profit made on the sale thereof, and all its fees, charges, gifts, grants, revenues, receipts and other moneys received, pledged to pay or secure the payment of such notes or bonds shall at all times be free from taxation of every kind by the state and by the municipalities and all other political subdivisions of the state.
The property of the association is declared to be public property used for essential public purposes and such property and the income and operations of the association shall be exempt from all taxes and special assessments of the city, the county, the state or any political subdivision or municipalities thereof; provided, however, that the association’s office property shall be subject to property taxes and that in lieu of such taxes on its other property, the association shall negotiate an agreement with the city, the county, the state, as the case may be, to make payments, if any be required, to the city, county, or the state for improvements, services and facilities furnished by the said city, county or state for the benefits of a housing project, or in lieu of such taxes, the association may agree to make payments to a school district or school districts, which district or districts include within its boundaries all or a portion of the real property of the association, for school services and facilities furnished by said school district or districts, for the benefit of the residents of a housing project.