Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Affordable Housing topic
No spam. Unsubscribe anytime.
Council approves PILOT agreement and creates Affordable Housing Fund to support low-income housing project
Summary
North Manchester approved a PILOT (payments-in-lieu-of-taxes) resolution to enable a low-income housing tax-credit project and passed an ordinance establishing an Affordable Housing Fund to receive those payments; council described a proposed PILOT starting roughly $16,000 annually with a 3% escalator over up to 40 years to support future affordable housing activities.
The North Manchester Town Council approved a resolution authorizing a Payments In Lieu Of Taxes (PILOT) agreement to support a recently annexed low-income housing project and adopted an ordinance establishing an Affordable Housing Fund to collect and manage PILOT proceeds.
Council members read and discussed Resolution No. 2, which authorizes the town to enter into PILOT agreements for properties qualifying for low-income housing tax credits under Indiana Code. Staff explained the PILOT concept: instead of full property tax exemption, the property owner pays an agreed annual amount to the town (treated procedurally like property tax) for a fixed term. The presentation noted a proposed payment structure in the application of roughly $16,000 per year with a 3% annual escalator for up to 40 years; proceeds would be deposited into the newly established Affordable Housing Fund for future local housing projects and eligible expenses.
The council then considered and passed General Ordinance No. 9 to create the Affordable Housing Fund as required by the PILOT terms and Indiana Code. Both the PILOT resolution and the ordinance were approved during the meeting.
Town staff said the PILOT and fund creation are part of the developer’s application to secure low-income housing tax credits and to help model income-based rents for the project. The council closed debate and voted to adopt the resolution and ordinance; no recorded dissent was noted in the provided transcript.
The council’s action enables the town to enter a long-term PILOT agreement if final terms are negotiated with the property owner and provides a municipal mechanism to retain and target the payments for affordable housing initiatives.
