Title
An Ordinance to Amend Sections 1:651 of Chapter 19 (Tax Exemptions for Housing Projects) of Title I of the Code of the City of Ann Arbor (Ordinance No. ORD-09-11)
Memorandum
Attached for your review and approval is an amended Section 1:651 of Chapter 19, which is the PILOT (Payment in Lieu of Taxes) ordinance for affordable housing providers. The Office of Community Development and Housing and Human Services Advisory Board are recommending that the PILOT ordinance be amended to increase the income limit of the PILOT from 50% of Area Median Income (AMI) to 60% AMI. Following is the most recent income limits as published by HUD:
Household Size|9999999|
60% AMI $34,620 $39,540 $44,520 $49,440 $53,400 $57,360
50% AMI $28,850 $32,950 $37,100 $41,200 $44,500 $47,800
The City currently provides operating support to the non-profit housing providers in the City on an annual basis. These funds are necessary to ensure adequate administrative funds to manage and maintain the units in the City’s portfolio. Each year the City collects both property taxes and PILOT’s from non-profit housing providers. In essence, the City collects taxes and fees and gives the funds back to the nonprofits in the form of operating grants.
The City executes a Housing Affordability Agreement with the non-profit to ensure that the non-profit is maintaining safe and decent affordable housing for the target population. This agreement generally limits the income of the tenants to 50% AMI at the time the tenant moves into the unit. Most tenants tend to be under 30% AMI. The tenant’s income is checked annually by the nonprofit and this information is provided to the City to qualify the units for a PILOT.
The nonprofits are not just providing housing, they are also providing emergency and ongoing support services to the tenants so that they can stabilize their living situations and improve their physical, mental and economic health. As a consequence, some tenants are able to find jobs ...
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