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 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:

 

RESOURCES:

 

TRAININGS:

 

PRESENTATIONS:

 

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.

 

PILOT - The Future of Affordability