(1) The property and funds of an authority are declared to be public property used for essential public, governmental, and charitable purposes.
(2)
(a) Subject to Subsections (2)(b) and (c), the property and authority are exempt from all taxes and special assessments of a public body.
(b) This tax exemption does not apply to any portion of a project used for a profit-making enterprise.
(c) In taxing these portions appropriate allowance shall be made for any expenditure by an authority for utilities or other public services it provides to serve the property.
(3) In lieu of taxes on its exempt property an authority may agree to make payments to a public body if the authority finds that making the payments is consistent with the maintenance of the low-rent character of housing projects and the achievement of the purposes of this part.