Payment in Lieu of Taxes (PILOT)

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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 by the City of Detroit Housing and Revitalization Department.

Applications are now being accepted via the Neighborly platform. The Administrative Rules guiding this program were published June 2, 2025. Review the resources below for more information.

NOTICE: Projects seeking PILOT for the 2026 tax year must complete their application as soon as possible. Approval is not guaranteed, but applications will be processed in the order they are received and in a timely manner. After approval, projects must receive MSHDA certification of exemption and submit PILOT Initiation "Packet" to the office of the Assessor by November 1, 2025. For help, contact your application reviewer, [email protected], or attend PILOT Virtual office hours held the first and third Thursday of each month from 1-3pm via this Teams Link.

List of Administratively Approved Projects

APPLICATION MATERIALS:

PILOT Application (hosted on Neighborly)
Pro Forma Template for all applicants (Updated Oct 2025)
DAH Blight Clearance Request Form for all applicants
Affordability Agreement Template for housing projects that are not government-aided (Updated Aug 2025)
Investment Summary
PILOT Initiation Packet

POLICY RESOURCES:

PILOT Developer One Pager
Administrative Rules
Frequently Asked Questions (FAQs) (Updated Oct 2025)
Process Map
Final Ordinance As Adopted with Amendments

TENANT RETENTION AND INCOME VERIFICATION RESOURCES:

Landlord Guide - Tenant Authorization and Income Verification one-pager
Tenant Retention Plan Template for occupied housing projects
HRD Tenant Retention Standards
HRD PILOT Tenant Retention Policy "Cheat Sheet" for legacy residents of non-government-aided housing projects
Tenant Authorization Form income verification for tenants in non-government-aided housing projects
Sample Tenant Communication notice of upcoming PILOT and income verification for non-government-aided housing projects
Student Verification Form see FAQs for explanation of use

MSHDA 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