Ensure that your project qualifies for PILOT, is ready to apply, and that PILOT is the best tool for your development. Determine what your affordability restrictions will be.

Does project qualify?

• At least 4 units
• Has affordability restrictions and/or is willing to commit to affordability restrictions for the duration of PILOT
• Satisfies “Good standing” including:
  • No outstanding blight tickets
  • No delinquent property taxes
  • No default on City loans
  • Compliant with any City of Detroit tenant retention plans or affordability agreements
• Has completed or will undergo construction/rehab satisfying investment thresholds:
  • $5,000/unit for occupied rehabilitation
  • $15,000/unit for vacant rehabilitation

Is project ready?

• Applicant has site control of subject property(ies)
• Rehabilitation is financed
• Applicant is ready to determine affordability restrictions

Is PILOT the best fit?

• I understand my current tax obligation and have an estimate of what my costs would be under PILOT
• I understand the other options that may be available to me, such as abatements.

Eligibility Requirements

PILOT General Information Training 2/19/25   -   Recording and Slide Deck

This is a two-part application. You’ll use Neighborly to apply.

If you’ve never used Neighborly before, click here for instructions on how to create an account.

Application Resources
Pro Forma Template for all applicants (Updated Nov 2025) 
DAH Blight Clearance Request Form for all applicants 
 

HRD will review the Neighborly application for completion, accuracy, and eligibility. Certain projects will require additional steps before approval, including:

• Tenant Retention Plan- to protect legacy residents in occupied properties entering new affordability restriction and/or undergoing renovation
• Affordability Agreement- agreement between the City and PILOT applicant that will restrict affordability during the term of the PILOT
• Underwriting- review of project financials for “standard workforce housing projects” to determine the PILOT rate that will be proposed to Council

Fast-Track Housing Projects will be required to income-verity tenants in restricted units. Occupied projects must complete a Tenant Retention Plan. Tenant Retention

Affordability Agreement Template for housing projects that are not government-aided (Updated Nov 2025)
Tenant Retention Plan Template for occupied housing projects 

Most projects will be administratively approved by HRD. Standard Workforce Housing Projects will be conditionally approved by HRD and will require City Council action to be approved.

After a project is approved for PILOT

MSHDA Affidavits: 
MSHDA Notice to Assessor - Workforce Housing Affidavit 
MSHDA Notice to Assessor - Government Aided Housing Affidavit 

 
Before the PILOT can go into effect, projects must complete the repairs/construction associated with their PILOT application to satisfy their investment threshold ($5,000/unit for occupied rehabilitation projects, $15,000/unit for vacant rehabilitation projects). Projects must receive a Certificate of Compliance

By November 1 of the year preceding that which the PILOT is to take effect, approved projects will submit a packet to the Assessor. This packet will include documentation of any outstanding requirements such as: MSHDA exemption certification, satisfaction of investment threshold, and proof of ownership.

Effective December 31 of the year prior to that which the PILOT is to take effect, projects must have occupancy and compliance with BSEED rental ordinance including Rental Registration and Certificate of Compliance. This documentation is included with the Packet, if available. Projects are also subject to good standing review and must have no delinquent taxes to have the PILOT period active.

PILOT Initiation Resources: 
PILOT Initiation Packet- smartsheet form to request Assessor to initiate PILOT 
Investment Summary optional tool to document expenditures toward investment threshold 
PILOT Initiation Training: MSHDA Certification and Packet Submission Slide Deck - Oct 16 2025 

After reviewing packet and PILOT requirements, the Assessor will take a property off the tax roll in the following tax year. The PILOT period for Fast track housing projects (FTHPs) is 15 years, and the PILOT period for Government-Aided housing projects (GAHP) is 45 years, or the length of the government assistance.  

Active PILOTs are subject to ongoing compliance. Affordability compliance for Government-Aided housing projects (GAHP) is handled by the government funder. Affordability compliance for Fast track housing projects (FTHPs) is conducted by a designee of the City of Detroit, NCS.  

Starting in the second year of their PILOT, projects must also provide annual statements to the Assessor office for use in calculation of the PILOT payment, or default values will be used.