Which of the following properties can be exempt from taxation due to its use as a housing project?

The correct answer is based on the specific exemptions outlined under New Jersey tax law, which recognizes that properties owned by public housing authorities serve a critical function in providing affordable housing. These properties typically fulfill a social purpose by addressing the housing needs of low-income individuals and families, which is essential for community development and welfare.

Public housing authorities are specifically created to manage and operate housing projects that provide safe and affordable housing options, and as such, their properties often qualify for tax exemptions because they contribute to public welfare rather than generating profit. This exemption is a recognition of the role these properties play in alleviating housing shortages and serving lower-income populations.

In contrast, properties owned by a municipality and leased for commercial purposes, properties leased to an interstate agency, and cultural centers leased by a governing body typically do not qualify for this same level of exemption. They are usually utilized for profit-generating activities or do not primarily serve as housing initiatives, which is a key factor in determining tax exemption eligibility for housing projects.