(a) Housing owned and operated by a nonprofit corporation or association for occupancy or use by elderly or handicapped persons, the construction of which is financed by the United States of America, shall be valued, for purposes of assessment, on the basis of the equity owned in the housing by the nonprofit corporation or association.

(b) As used in this section, unless the context otherwise requires:

(1) "Elderly person" means a person sixty-two (62) years of age or older and the spouse of that person;

(2) "Equity" means the market value of the housing less any mortgage indebtedness to the United States of America;

(3) "Handicapped person" means any adult having an impairment which is expected to be of long, continued, and indefinite duration; is a substantial impairment to his or her ability to live independently; and is of a nature that such ability to live independently would be improved by more suitable housing conditions and shall include an adult who is developmentally disabled;

(4) "Housing" means structures consisting of eight (8) or more residential units for occupancy and use by elderly or handicapped persons, including essential contiguous land and related facilities, as well as all personal property of the corporation or association used in connection with the facilities; and

(5) "Nonprofit corporation or association" means any corporation or association incorporated under the laws of this state not otherwise exempt from general ad valorem, real, and personal property taxes, operating a housing facility or project qualified, built, and financed by the United States of America under § 202 of the National Housing Act of 1959, as amended, 12 U.S.C. § 1701q.