Resolution - Community Development: Consider a resolution adopting the recommendation of the Lubbock Housing Authority of the City of Lubbock, to grant the waiver of Payment in Lieu of Taxes for FY 2019-20.
Item Summary
In April 2003, the City Council amended the Cooperation Agreement dated August 24, 1995, between Lubbock Housing Authority (LHA) and the City of Lubbock concerning Payment in Lieu of Taxes (PILOT). The amendment allows the City Council to reconsider the request to waive the PILOT on an annual basis. Approval is based on the previous year's use of the waived taxes to ensure the funds were used towards affordable housing projects.
A review of the use of funds is conducted each year. For the time period beginning October 1, 2019 and ending September 30, 2020, net rental revenue collected by LHA was $411,740.00. The U.S. Department of Housing and Urban Development (HUD) requires the City to approve a waiver of the PILOT on an annual basis. The PILOT is equivalent to 10 percent of rent, in this case $41,174.00. The amounts retained by LHA will be used to enhance the properties of LHA. The amount to be waived is $41,174.00.
Fiscal Impact
As a result of waiving the PILOT, $41,174.00 will not be added as revenue to the General Fund of the City of Lubbock.
Staff/Board Recommending
Bill Howerton, Deputy City Manager Karen Murfee, Director of Community Development
