(1) Except as provided in subsection (2) or (3), free service shall not be furnished by a public improvement to a person, firm, or corporation, public or private, or to a public agency or instrumentality. The reasonable cost and value of any service rendered to a public corporation, including the borrower, by a public improvement must be charged against the public corporation and must be paid for as the service accrues from the public corporation's current funds or from the proceeds of taxes, which the public corporation, within constitutional limitations, is hereby authorized and required to levy in an amount sufficient for that purpose, or both, and those charges, when so paid, shall be accounted for in the same manner as other revenues of the public improvement.

    (2) A public improvement that is a hospital or other health care facility may provide medical care to the indigent without charge or at reduced rates and may provide medical care without charge to comply with conditions for the receipt of a grant or contribution from a public or private donor.

    (3) A public improvement may provide a free service to a land bank fast track authority created under the land bank fast track act, 2003 PA 258, MCL 124.751 to 124.774.