Payment in Lieu of Taxes (PILOT)

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Program Basics:

Recently passed local ordinance allows for “payment in lieu of taxes” (PILOT) for housing developments for low- or moderate-income tenants. Key requirements include:

  • Agree to lease units to tenants with qualifying income (tenant income no greater than 120%AMI) and restrict rent for duration of the PILOT
  • Meet investment thresholds: $15,000/unit for vacant rehabs; $5,000/unit for occupied rehabs
  • Comply with BSEED including Certificate of Compliance or Certificate of Occupancy
  • Maintain “Good Standing” with the City

PILOT Rate is Based on Affordability and Building Type

Annual service charge will be calculated as a percentage of rental income based on affordability and building type, per the table below.

Average
Affordability

PILOT Rate

Standard

Long-Term Vacant Rehab

81-120% AMI

*

3.5%

61-80% AMI

4.0%

2.0%

≤ 60% AMI

1.0%

0.5%

*Standard Workforce Housing Projects (SWHPs) with average affordability between 81-120% AMI require underwriting and City Council approval.

Payment in Lieu of Taxes

Apply for PILOT

Payment in Lieu of Taxes

Additional Resources

 

Office Hours:

If you have questions, join our virtual office hours, 1-3pm on the first Thursday of each month by clicking this Teams link.

 

Administrative Approvals:

See Administratively Approved PILOT Projects List here.