Snapshot of the 2016 PILOT Application Process

 

Introduction

The PILOT (Payment In Lieu Of Taxes) Program is a financial incentive designed to encourage new construction and substantial rehabilitation of affordable multi-family housing through significant property tax relief for a period of ten (10) years within the limits of the City of Memphis (the “City”).  Priority is given to development projects located in Target Areas, as defined by the City, at the time of the application.

 

Basic Eligibility Requirements

 Investment:  To be eligible for a PILOT, the value of the building renovations, site improvements or new construction must be equal to or greater than fifty percent (50%) of the property acquisition cost.

Site Control:  The applicant (“Applicant”) must have site control which shall be the equivalent of fee simple title, 99 year lease, or an option to purchase with no contingencies except financing.

Financial Commitment:  Applicant must have evidence of financing commitment for total project costs. 

Target Market: 20% of the Applicant’s units must be occupied by individuals whose income is 50% or less of the median gross income or 40% or more of the units must be occupied by individuals whose income is 60% or less of the median gross income.

Tenant Benefits:  Applicant must provide written projection of how PILOT savings will directly benefit tenants through one or more of the following – additional property improvements, rent reduction or stabilization, and tenant services, to include any specific social services.

 

Submittal of Application

An outline of the PILOT application is provided during the mandatory pre-submittal conference.  The application must be submitted prior to the application deadline. There will be one hard copy in a 3-ring tabbed binder. Neither application draft nor final applications will be accepted after 3:00 PM Central Time. If the format does not follow that provided by the Board, the application will not be reviewed. APPLICATIONS WILL ONLY BE ACCEPTED DURING AN ANNOUNCED PILOT ROUND.

 

Compliance/Monitoring

It is the purpose of this program to benefit low and moderate income tenants.  As a result, properties included in this tax relief program are subject to quarterly reporting and monitoring requirements forcompliance with both the terms of this program and with other fair housing practices.  Each approved applicant will submit reports to the Board to insure compliance with PILOT program requirements. Said compliance requirements will be provided in the pre-submittal conference.