Section 4: Financial provisions.

The loss of revenue that the urban community suffers as a result of the temporary exemptions enjoyed by new constructions as well as the premises referred to in articles 1384 C and 1384 D of the General Tax Code in respect of property tax on built-up properties are offset by a State subsidy, determined under the same conditions as the allowance paid to the municipalities, in accordance with the provisions of Article L. 2335-3.

The loss of revenue that the urban community suffers as a result of the extension from fifteen to twenty-five years of the exemptions from property tax on built-up properties provided for in articles 1384 A, 1384 C and 1384 D of the General Tax Code are compensated in accordance with the provisions of Article L. 2335-3 of this Code.

For social rental housing benefiting from a decision to grant a subsidy or subsidised loan between 1 December 2005 and 31 December 2026, with the exception of new constructions financed (1) by means of loans referred to in sub-section 3 of section 1 of the single chapter of title III of book III of the construction and housing code, losses of revenue for urban communities resulting from the exemption from property tax on built properties for fifteen or twenty years provided for by articles 1384 A and 1384 C of the General Tax Code are compensated by a levy on State revenue. In this case, the compensation paid to each urban community is equal, each year, to the amount of the loss of revenue multiplied from 2009 by a reduction rate. For 2009, this reduction rate corresponds to the difference between the total amount paid in 2008 for all the compensation mentioned in I to X of the article 48 of Finance Act no. 2008-1425 of 27 December 2008 for 2009 and the total amount of this same compensation provided for this purpose for 2009 by XI of this same article. For 2010, the compensation calculated in accordance with the preceding provisions and to which the rate of change set for 2009 is applied is reduced by applying a rate corresponding to the difference between the total amount to be paid in 2009 for all of the compensation mentioned in I to VIII of Article 47 of Finance Act no. 2009-1673 of 30 December 2009 for 2010 and the total amount of this same compensation provided for this purpose for 2010 by IX of this same article.

From 2011, the compensation defined in the previous paragraphs is calculated in accordance with Article L. 2335-3.