The citizens group Accountability for Taxpayer Money (ATM) is asking the City Council to consider several major modifications to the city’s Housing Payment- in -Lieu -of -Tax (PILOT) program before passing a resolution next Tuesday to renew the program.
Helen Burns Sharp said, "We applaud Mayor Berke for proposing changes. We respectfully submit that the current proposal does not go far enough.
"The PILOT program enables developers to get significant property tax breaks.
In 2015, PILOT agreements resulted in some 15 million dollars of lost revenue to our city and county. An "in-lieu" agreement typically lasts at least 10 years. $350 million is a conservative estimate of the amount of tax revenue that will not be collected over time due to existing agreements.
"Tax abatements raise both tax equity and social justice concerns. Why should homeowners and small businesses pay their fair share of taxes and also pay for the services (fire, police, etc.) for these companies? How could the money not collected be targeted for high priority community projects? We are asking the Council to address the following issues to protect the public interest."
Affordability—Is $857 per month an “affordable” rent? That is 80% AMI for 2016.
Accountability—The weak “clawback” language in the current documents should be strengthened to hold developers accountable for their commitments.
Administrative Costs—Why should taxpayers continue to assume the cost of program administration? In other cities, the company benefiting from the tax break pays for this cost in application fees and fees at closing.
Program Length—Should the program allow for a tax break that apparently could last up to 18 years?
Transparency—Should the City allow a public hearing opportunity for citizens to speak about a proposed PILOT?
Vetting --Who is on the “review committee” that will vet the applications and decide which projects go forward to the HEB? Who will provide staff support to the HEB?