The Chattanooga Association of Realtors has issued a statement in support of PILOT tax abatement programs.
The realtors said there should be strict adherence to the requirements for obtaining the tax breaks.
The PILOTs should be easily transferred to a buyer in case of a sale of the property, it was stated.
Here is the written policy:
PILOT Programs (Payment In Lieu Of Taxes), as they are defined by resolution of the Hamilton County Board of Commissioners, and by Ordinance of the Chattanooga City Council are sound, acceptable, and positive instruments of tax policy, used by local governments for the purpose of economic development when used in a thoughtful and judicious manner, in accordance with principles which are accountable, transparent in their terms, transferable, fairly and consistently granted to all qualifying and eligible applicants, and readily explainable to the public.
By resolution of the Board of Directors, we approve of their use, subject to certain principles, herein listed:
· DEFINED, DISCLOSED & JUSTIFIED
Governmental bodies should follow a thorough analysis process to vet a project’s benefits to the community in terms that are clear and meaningful. This process should be fair and balanced and elected officials should use all means at their disposal to ensure that the public is fully informed about the process, including guidelines for application; qualification of the applicants; individual application details; dates, places, and times in which public comment will be heard, oral or written. This should be web available.
· ACCOUNTABILITY
Successful PILOT applications should be carried out with strict adherence to reporting requirements established by local governments. PILOT recipients should be held to a high standard of reporting periodic performance results on each item within their application process that was used to secure approval of their program. Government must assure the performance of the applicants by use of a “clawback” process, which imposes appropriate and proportional sanctions against PILOT recipients who fail to achieve and maintain the level of accountability reporting and measureable satisfactory performance agreed to within the granting process.
· TRANSPARENCY
All terms of PILOT Programs should be stated in advance in a specific manner, and as a matter of public record. These terms include financial investment reporting, expectations of employment generation, measurable affordable housing goals, and possible conflict of interest reporting. Applicants should be required to produce specific statistical data where applicable, as opposed to vague suppositions that might be difficult to support.
· TRANSFERABILITY
Transferability of the PILOT is essential to development financing. Making a PILOT non-transferable greatly restricts the effectiveness of the program. Because of the risk and uncertainty that accompany property development, including economic or catastrophic events beyond control of an applicant, government should determine at the outset policies generally allowing the transfer of the PILOT benefits, upon sale of the property, to a new owner or developer, so long as the new owner adheres to the requirements imposed on the original developer.
· FAIRNESS
Applicants should be assured of a fair and impartial hearing of a PILOT request before all governmental bodies. Because it is a fundamental necessity to maintain public trust in the program, there cannot be any suggestion of favoritism, partiality, or inside dealing in the granting process. PILOT Programs must be consistently approved and governed on a basis of even-handed treatment given to each applicant regardless of the size of the application, as long as each application meets the standards of appropriateness, clarity of purpose and use.