1 / 10

Impacts of Affordable Housing Policies

Impacts of Affordable Housing Policies. Payment In Lieu Of Taxes (PILOT) Fee Waivers. Council Actions: Affordable Housing Policies & Housing Authority. January 20, 1975: Fees waived for Westview and future Housing Authority projects.

zuzela
Download Presentation

Impacts of Affordable Housing Policies

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Impacts of Affordable Housing Policies • Payment In Lieu Of Taxes (PILOT) • Fee Waivers

  2. Council Actions: Affordable Housing Policies & Housing Authority • January 20, 1975: Fees waived for Westview and future Housing Authority projects. • January 9, 1979: Payment In Lieu Of Taxes (PILOT) established. • February 28, 2005: Waived administrative fees up to $25,000. • August 4, 2008: PILOT Agreement amended to allow Housing Authority to use funds for new affordable housing projects. • April 26, 2010: In considering fees, deferred fiscal impacts of policies related to Housing Authority to FAB Committee. • May 4, 2010: FAB Committee directed staff to do further research. • August 2, 2010: Council considers fiscal impacts findings.

  3. PILOT Cooperation Agreement • PILOT = offset to property taxes that Housing Authority is exempt from paying. • PILOT based on 10% of Authority’s public housing units; PHAs allowed to use federal funds for PILOT payments. • 1979-2004 – Housing Authority pays PILOT; distributed amongst taxing entities (incl. County, School District, City). • 2004-2008 – Housing Authority requests waiver of PILOT; stops making payments, establishes Housing Trust Fund. • August 2008 – Council amends Agreement, allowing Authority to stop PILOT payments & use for HTF.

  4. Fiscal Impacts of PILOT • PILOTs calculated for 2005-2008*: • 2005: $244,373City’s share = $40,736 • 2006: $245,982City’s share = $41,005 • 2007: $233,794City’s share = $38,973 • 2008: $256,045City’s share = $42,683 • City’s 4-Year total = $163,397 • 2005-2008 PILOT ($980,194) monies not paid to taxing entity were directed to Housing Trust Fund for development of new affordable housing units. * Calculations are approximate; City share calculations based on a 16.67% share.

  5. Fiscal Impacts of Property Tax Exemption Property Tax Exemption = No Property Taxes paid to County, no property tax funds dispersed to taxing entities. • As Public Housing Authority, all units owned & operated by HACSB exempt from property tax. • State Law allows non-profit affordable housing owners/ operators a “welfare exemption,” exempting from property tax.

  6. Fiscal Impacts of Residential Properties Cost of Providing Services to Residential Properties: • Regardless of property taxes collection, there is a cost to taxing entities to serve residential properties. • Estimated cost for general City services = $2.09/person/day.* • Estimated annual cost for City services for 4-person household = $3,000. • PILOT designed to offset costs of providing services to tax-exempt residential properties. * Does not include costs to other agencies such as school district, county, etc.

  7. Housing Authority – Fee Waivers • 1975: Council granted Housing Authority request to waive permit fees for Westview and future contracts. • 2004: Housing Authority requests waiver of fees for Chapel Lane Apartment project; City Attorney concluded 1975 Resolution was outdated (30 years of court decisions and changes in laws). • 2004-2005: Housing Authority requests City reimburse $252,191 already paid in fees for Chapel Lane. • 2005: Council approved waiver of certain administrative fees up to $25,000 for Chapel Lane and other Housing Authority residential housing projects.

  8. Housing Authority – Fee Waivers • April 2010: Housing Authority requested waiver of all development fees for Soho Apartment project. • Based on 2005 Chapel Lane action: • Waiver of $25,000 in administrative fees for Soho project granted. • Waiver of up to $25,000 in administrative fees for Encanto del Mar project available.

  9. Fiscal Impacts PILOT Waiver • $40,000+ per year loss of general fund revenue. Fee Waivers • $25,000 Waiver = Loss of $25,000 general fund revenue. • Additional Waiver = Dollar-for-Dollar loss to general fund revenue.

  10. Recommended Action Accept and review Administrative Report. Provide staff direction, if any, for further consideration

More Related