Pecos City Council waives city portion of 2024 PILOT for Housing Authority after presentation

John Salcedo, director of the Pecos Housing Authority, presented the authority's 2024 annual report and asked the Pecos City Council to waive the 2024 payment in lieu of taxes (PILOT) for the authority.

The housing authority requested the full PILOT be waived so it could reallocate about $42,000 that would otherwise be paid this year toward capital projects such as window replacements. "Those kind of funds, we could use it back into our complex," Salcedo said, noting the authority had saved approximately $456,000 for the East Side window replacement project and that rents and subsidies are largely set by HUD formulas.

The council clarified that it does not have authority to waive other taxing entities' shares of the PILOT and that each taxing entity must act on its portion. Salcedo acknowledged the process and said the corporation agreement shows each taxing entity must waive its share independently.

Councilman Graham moved to waive the city's portion of the 2024 PILOT, and Councilwoman Trujillo seconded the motion. The council voted in favor; the transcript does not list an exact roll-call count for the vote. The mayor directed that the record show the motion carried.

Council members asked whether the authority had approached other taxing entities; Salcedo said they had not yet contacted them and that the authority's board had asked him to request the waiver from the council. The council noted past years had included partial waivers and changes in the authority's share over time.

The council's action affects only the city's portion of the PILOT; the council did not adopt a formal action to compel other taxing entities to waive their shares.

The housing authority also reviewed operational details during the presentation, including unit age (built in 1974, with later remodels), near-full occupancy, waitlist sizes typically between 20 and 30 applicants per unit type, and use of HUD operating and capital funds for maintenance and longer-term projects.

Salcedo said the authority receives operating subsidy tied to its performance and that the authority uses subsidy and capital funds to pay staff, insurance, and capital projects. He said vacancies often generate many applications and that tenant selection follows HUD-regulated wait-list procedures.

Council members and Salcedo agreed the authority would pursue other taxing entities for their waivers as appropriate. The council's waiver applies only to the city's share; amounts and votes for other entities were not specified.

Ending: The council's vote resolves Pecos's share of the 2024 PILOT; the housing authority will continue to pursue waivers or negotiations with the other taxing jurisdictions as appropriate.