(a)      (1)      In this section, "entity related to the Housing Authority of Baltimore City" means an entity:

                  (i)      That is wholly owned by the Housing Authority of Baltimore City; or

                  (ii)      In which the Housing Authority of Baltimore City or an entity wholly owned by the Housing Authority of Baltimore City has an ownership interest.

            (2)      The property of an authority or of a nonprofit housing corporation or any property used as housing for persons of eligible income that is owned by an entity related to the Housing Authority of Baltimore City, is declared to be used for essential public and governmental purposes and such property and an authority shall be exempt from all taxes and special assessments of the city, the county, the State, or any political subdivision thereof.

            (3)      In lieu of such taxes and special assessments, an authority, an entity related to the Housing Authority of Baltimore City, or a nonprofit housing corporation shall make payments to the city, the county, or the political subdivision of the State in which a housing project is wholly or partly located in such amount, if any, as may be set by mutual agreement between such authority, entity related to the Housing Authority of Baltimore City, or nonprofit housing corporation and the city, the county, or the political subdivision of the State; provided, however, that the sum to be paid to the local government shall not exceed an amount equal to the regular taxes levied upon similar property.

      (b)      (1)      Except as set forth in paragraph (2) or (3) of this subsection, all real property of an authority shall be exempt from levy and sale by virtue of an execution, and no execution or other judicial process shall issue against the same nor shall any judgment against an authority be a charge or lien upon its real property.

            (2)      The provisions of paragraph (1) of this subsection shall not limit a right to foreclose or otherwise enforce:

                  (i)      Any mortgage or deed of trust recorded against any property of an authority; or

                  (ii)      Any pledge or lien given by an authority on its rents, fees, or revenues.

            (3)      The provisions of paragraphs (1) and (2) of this subsection may not deprive any city or county of its right to collect any service charge agreed upon in lieu of taxes in the same manner as all such taxes are now, or may hereafter be, collectible under the laws of this State and of said cities or counties.