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Council confirms PILOT will continue for Nolan Village rehab at Hagerstown Housing Authority request
Summary
Hagerstown Housing Authority Director Sean Griffith told the council the authority's long-standing PILOT (pilot payment-in-lieu-of-taxes) covers existing public housing communities and, because Nolan Village is a rehab not new construction, the authority expects the 10% PILOT on sheltered rent will continue; council members agreed the understanding was fair.
Sean Griffith, identified in the meeting as director of the Hagerstown Housing Authority, briefed the mayor and council on a long-standing payment-in-lieu-of-taxes (PILOT) pilot that dates to the 1950s and covers the authority's public housing communities. Griffith said the last major modification to the PILOT was in 1976 and that the arrangement has been amended over time to reflect unit counts in covered properties.
"What a pilot is, it's a payment low of taxes. In this particular case, the housing authority is exempt from taxes and agreed to go into a pilot with the city, which is basically 10% of what we call sheltered rent," Griffith explained during the work session, adding that sheltered rent is "basically rent collected minus utilities." Griffith said the authority is rehabilitating Nolan Village (to be called Martin Heights) but is not adding units, and therefore staff understands the site will remain in the existing pilot rather than being treated as new construction. He asked the council to confirm that understanding; council members present indicated assent and no further action was requested on the record.
The presentation noted the housing authority has previously sought council guidance when undertaking new construction or redevelopment projects that could affect pilot coverage. Griffith said staff would follow up with any needed formal documentation if circumstances changed.
