Title
Resolution providing for the execution of a Payment in Lieu of Taxes (“PILOT”) Agreement or Agreements with the Housing Authority of Pittsburgh for the development of Bedford Dwellings Phase IA housing project.
Body
WHEREAS, the Housing Authority of the City of Pittsburgh (“Local Authority”) and the City of Pittsburgh (“Municipality”) entered into a Cooperation Agreement, dated as of December 13, 1988.
WHEREAS, the Municipality and the Local Authority have the power to enter into agreements with each other.
WHEREAS, the Local Authority or an affiliate thereof has an ownership interest in the housing project commonly known as Bedford Dwellings Phase IA (“the Development”).
WHEREAS, the Municipality desires to act cooperatively with the Local Authority to provide adequate low-income housing opportunities within the Municipality.
Be it resolved by the Council of the City of Pittsburgh as follows:
Section 1. The Mayor and the Director of the Department of Finance are hereby authorized to enter into a Payment in Lieu of Taxes (PILOT) Agreement or Agreements with the Local Authority, in form approved by the City Solicitor. The agreement exempts the Development from all Assessments levied or imposed by any Taxing Body, and forbids the Municipality from levying or imposing any Assessments upon the Development.
Section 2. The Local Authority shall make annual Payments in Lieu of Taxes after the end of the fiscal year established for the Development in payment for the public services and facilities furnished without other cost or charge for or with respect to the Development.
Each annual Payment in Lieu of Taxes shall be made on or before February 28 of each year. Payments made for the Development will be deposited into account 11101.107000.41.41905 or such other account identified by the City.
The payments shall be in an amount equal to the sum of the Municipality's millage rate divided by the sum of the Municipality's millage rate, the County of Allegheny millage rate and the City of Pittsburgh School District millage rate and then multiplied by the lower of either (i) ten percent (10%) of the aggregate Shelter Rent received by the Local Authority or Owner Entity with respect to the Development during such fiscal year; or (ii) the amount of the real property taxes which would have been paid to the Municipality for such year if the Development were not exempt from taxation.
The Local Authority shall utilize government loans, annual contributions, and the Low-Income Housing Tax Credit program to cover development costs. The Development shall comply with all zoning ordinances of the Municipality and provide low-rent (rented to persons or families with incomes at or below 80% area median income) units within the corporate limits of the Municipality.