Payment in Lieu of Taxes (PILOT)
Tax incentive to support the development of affordable housing
On Tuesday October 29, 2024, Detroit City Council voted to amend the City's local Payment in Lieu of Taxes (PILOT) ordinance. A PILOT is a tax incentive for affordable housing that calculates taxes as a percent of rental revenue, instead of tying them to property value. Traditionally, PILOTs have only been available to federally-subsidized housing (i.e. LIHTC-funded projects). State law now allows local governments the ability to develop PILOT policies (via ordinance) and enter into PILOT agreements for any project that commits to providing quality affordable housing, regardless of the development's funding source.
See below for how the City intends to use this new tool to make Detroit the easiest city in the state for building affordable housing.
- PILOT Presentation
- BFA Public Hearing Presentation 10/16/24
- Recording of Chartered-Mandated Meeting
- PILOT Press Release
- Tenant Retention Standards
- Final Ordinance As Adopted with Amendments
- FAQ's
Preliminary Interest Form: Developers interested in a potential application for a PILOT under the revised ordinance can complete a Preliminary Interest Form. This is NOT an application for the program, but completing the interest form will put you on a list to be notified when the formal application is live.
Ongoing Communication: If you would like to receive updates about the PILOT program as implementation takes place, please sign up to be part of the distribution list here.
