Title
Resolution Approving Memorandum of Understanding with Housing Authority of the City of Greensboro - Payments in Lieu of Taxes
Body
Department: Neighborhood Development
Council District: All
Public Hearing: No
Advertising Date/By:
Contact 1 and Phone: Barbara Harris, 373-2509
Contact 2 and Phone: Cynthia Blue, 433-7376
PURPOSE:
City Council is requested to consider a Memorandum of Understanding with the Housing Authority of the City of Greensboro which returns payments made to the City under a Cooperation Agreement and outlines their uses.
BACKGROUND:
The City of Greensboro and the Housing Authority of the City of Greensboro (GHA) entered into a Cooperation Agreement on December 28, 1949, (amended on October 18, 1961 and September 10, 1970 stating that so long as (i) GHA housing projects are used for low income housing purposes or (ii) there is an annual contributions contract between GHA and HUD for such housing projects, the City agrees that it will not levy or impose any real or personal taxes upon such housing projects or upon GHA with respect to such housing projects.
Under the terms of the Cooperation Agreement, GHA is required to make annual payments in lieu of taxes ("PILOT") for public facilities and services furnished for or with respect to the housing projects and the City is obligated to distribute the payments among itself and the County of Guilford in proportion to the amount of taxes that the projects would have been obligated to pay each municipality in the event that the housing projects were taxable.
Under a Memorandum of Understanding from 1987, the City agreed to refund the PILOT payments to GHA for non-routine maintenance, upgrading and modernization of their existing housing facilities. Under a Memorandum of Understanding from 1998, the PILOT payments to the City have been directed to repayment of debt on housing bonds issued in 1998 for GHA properties. Any excess was to be returned to GHA, at their r...
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