MEETING DATE:
DECEMBER 9, 2014
SUBJECT:
Title
RESOLUTION NO. SHA 2014-011 - SUPPLEMENTAL HOUSING SUPPORT AGREEMENT WITH NATIONAL CORE
Body
Recommendation
Recommendation
ADOPT a Successor Housing Agency (SHA) resolution approving the Supplemental Housing Support Agreement (SHSA) with National CORE (the Developer)
Body
Board or Commission Action
City Council approved an Exclusive Negotiating Agreement and predevelopment loan on Sept. 9, 2014
Relevant Council Strategic Theme
Planning for the Future
Relevant Department Goal
Facilitate Affordable Housing Production
Introduction
Recent legislation enacted by the State of California eliminates affordable housing Payment in Lieu of Taxes (PILOT) fee after December 31, 2014. The new legislation adds Section 214.06 to the Revenue and Taxation Code. Specifically it prohibits local governments from entering into a "payment in lieu of taxes (PILOT) agreement with a property owner of a low-income housing project." The new legislation defines in Section 214.09 a "payment in lieu of taxes agreement" as "any agreement entered into between a local government and a property owner of a low-income housing project that requires the owner of the low-income housing project to pay the local government a charge to compensate the local government for lost property tax revenues resulting from the low-income housing project receiving an exemption pursuant to subdivision (g) of Section 214."
Discussion
PILOT fees are paid to the City by affordable housing projects. They are an established, effective and integral component of funding affordable housing in San Marcos. Under California law, affordable housing projects are able to apply for an exemption to the payment of property taxes. They routinely do so. This allows an affordable housing development to avoid the payment of property taxes, thereby shifting the burden of providing basic City services to the project solely to the City. ...
Click here for full text