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.
The City of Detroit will start accepting applications for developments seeking a PILOT February 14th, 2025. Please note that applications will be processed, but will not be approved until the Administrative Rules guiding this process are finalized, estimated March/April 2025.
The following are links to the PILOT application, resources and presentations.
APPLICATION MATERIALS:
- PILOT Application (hosted on Neighborly) - will open February 14th, 2025 at 9AM
- Neighborly Participant Training Video
- Neighborly Getting Started Manual
- Pro Forma Template
- Affordability Agreement Template
- Tenant Authorization Form
- Tenant Retention Plan Template
TRAININGS:
- PILOT Training - Wednesday, February 19th, 9:00-10:00AM
- PILOT Virtual Office Hours - Thursday, February 20th, 1:00-3:00PM
RESOURCES:
- Final Ordinance As Adopted with Amendments
- FAQs (Updated Feb 2025)
- Tenant Retention Standards
- Expanded PILOT One-Pager
PRESENTATIONS:
- PILOT Presentation
- BFA Public Hearing Presentation 10/16/24
- Recording of Chartered-Mandated Meeting
- PILOT Press Release
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.
