Payment in Lieu of Taxes (PILOT)
Tax incentive to support the development of affordable housing
Notice is hereby given that the City of Detroit Housing & Revitalization Department has scheduled a PUBLIC HEARING that will be held in Courtroom 3, 1st Floor, Suite 1004, of the Coleman A Young Municipal Center, on TUESDAY, APRIL 22, 2025 AT 1:00PM, at which time all interested persons are invited to be present and be heard as to their views on the above proposed administrative rules described as follows:
Summary
The proposed Administrative Rules for the Housing & Revitalization Department to set forth General Provisions including Purpose, Title, Effective Date and Publication, Amendment of Rules and Procedures; to set forth Definitionsincluding General, Terms; to set forth Eligibility including General, Project Size, General Requirements; to set forth Annual Service Charge including Calculation, PILOT Basis, Permanent Supportive Housing Payment, Non-Exempt Payment, Annual Service Charge Timing; to set forth Investment Threshold including Threshold Amounts, Threshold Documentation, Threshold Time Period, Cap; to set forth Process and Timing including When to Apply, Initial Application Content, Application Process, Term of the PILOT, Renewal; to set forth Rents and Tenancy including Rent Limits, Affordability Agreement, Tenant Retention Plan; to set forth Compliance and Monitoring including Annual Reporting Requirements, Monitoring, Non-compliance and Remedies; to set forth City Reporting Requirements including Administrative Approval.
Copies of the proposed rules are available online at www.detroitmi.gov/PILOT or from the Housing & Revitalization Department, 2 Woodward Avenue, Suite 908, Detroit, MI 48226 during regular business hours. Additional information may be obtained from Michele Oberholtzer Zimmerman, Housing Program and Policy Advisor for the Housing & Revitalization Department.
Any written comments and recommendations intended to be considered prior to the adoption of the rules shall be submitted to the Housing & Revitalization Department no later than the conclusion of the public hearing.
Persons who wish to give oral presentations are encouraged to submit written copies to the Housing & Revitalization Department for inclusion in the record.
Please note, increased security measures for entrance into this building may cause delays. Therefore, allow sufficient time for prompt arrival.
Julie Schneider
Director
City of Detroit
NOTICE TO THE HEARING IMPAIRED:
With advance notice of seven calendar days, the City of Detroit will provide interpreter services at public meetings, including American Sign Language, language translation and reasonable ADA accommodations. Please contact the Civil Rights, Inclusion and Opportunity Department at (313) 224-4950, through the TTY number 711, or email [email protected] within seven calendar days advance notice.
On Tuesday October 29, 2024, Detroit City Council voted to amend the City's local Payment in Lieu of Taxes (PILOT) ordinance to expand access to PILOT for affordable housing developers following a recent change to State Law. A PILOT is a tax incentive that calculates property taxes as a percent of rental revenue, instead of tying them to property value. This program is being launched in 2025 by the City of Detroit Housing and Revitalization Department.
The City of Detroit began accepting applications for developments seeking a PILOT February 14th, 2025. As of this date, applications will be processed, but cannot be approved, until the Administrative Rules guiding this program are finalized (estimated late April 2025). The proposed Administrative Rules are available on this site and will be published in the Detroit Legal News.
The following are links to the PILOT application, resources and presentations.
APPLICATION MATERIALS:
- PILOT Application (hosted on Neighborly)
- Neighborly Participant Training Video
- Neighborly Getting Started Manual
- Pro Forma Template
- Affordability Agreement Template
- Tenant Authorization Form
- Tenant Retention Plan Template
RESOURCES:
- Proposed Administrative Rules
- Final Ordinance As Adopted with Amendments
- FAQs (Updated Mar 2025)
- Tenant Retention Standards
- Expanded PILOT One-Pager
TRAININGS:
- PILOT Virtual Office Hours - First and Third Thursdays, Mar-May 2025
- PILOT Training Recording - Feb 19 2025
- PILOT Training Deck - Feb 19 2025
PRESENTATIONS:
- PILOT BFA Public Hearing Deck - Oct 16 2024
- PILOT Charter-Mandated Meeting Recording - Sep 17 2024
- PILOT Charter-Mandated Meeting Deck - Sep 17 2024
- PILOT Press Release - Sep 17 2024
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.