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CONSIDERATION OF A REQUEST FROM THE NORMAN HOUSING AUTHORITY TO WAIVE THE PAYMENT IN LIEU OF TAXES (PILOT) IN THE AMOUNT OF $15,270.87 FOR FISCAL YEAR ENDING (FYE) 2018.
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INFORMATION: The Norman Housing Authority was established in 1974 pursuant to 63 Okla. Statutes Section 1051 et. seq. The mission of the Norman Housing Authority is to provide affordable housing opportunities for low income, handicapped, and elderly citizens of Norman. The Norman Housing Authority operates, among others: Rose Rock Villa located on North Berry Road; Redbud Village, a complex located north of West Rock Creek Road and east of 36th Ave. N.W.; Colonial Estates complex on East Lindsey Street; Jamestown on Vicksburg Court; Crystal Heights on Wren Street and Skylark Court; as well as several other collaborative projects throughout the city including McKinzie Gardens (providing independent living housing units for those with persistent mental illness) and NorthCliff Gardens (providing independent living facilities for the disabled).
Because the Norman Housing Authority is a non-profit entity created under Oklahoma Statutes, they are exempt from payment of most taxes and fees. However, the statutes require these types of entities to make Payments In Lieu Of Tax assessments (PILOT). The PILOT is determined based on the rental income and utility expenses of the Norman Housing Authority. The City entered into a Cooperation Agreement with the Housing Authority and Norman Public Schools in March 1979. This Agreement requires that the annual PILOT be split between the City of Norman and Norman Public Schools. The item coming before Council is a request that the PILOT fees due to the City of Norman be waived for FYE 2018.
DISCUSSION: On an annual basis, prior Councils have considered waiving PILOT payments in recognition of the Norman Housing Authority's efforts toward providing affordable public housing to the citizens of Norman. It has also been pointed out in the Norman Housing Authority request letter that they have been required to absorb funding cuts from the Department of Housing and Urban Development. For the fiscal year ending on June 30, 2018, the total PILOT due is $30,541.75. Of that, $15,270.87 is owed to the City. The Norman Housing Authority is requesting that the PILOT payment of $15,270.87 to the City of Norman be waived.
RECOMMENDATION: As in prior years, in accordance therewith, the above-described item is submitted for City Council's consideration. Staff will be available to answer questions or address concerns.