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HomeMy WebLinkAboutResolution - 2015-R0339 - Adopt LHA Recomendation To Waive PILOT For FY2014 - 10/08/2015Resolution No. 2015-RO339 Item No. 4.16 October 8, 2015 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Council hereby adopts the recommendation of the Lubbock Housing Authority of the City of Lubbock (LHA) to waive the Payment in Lieu of Taxes (PILOT) for FY 2014. Said LHA PILOT waiver recommendation is attached hereto and incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council on October 8 2015 GLE C. ROB RTSON, MAYOR ATTEST: Rebe a Garza, City Secretal APPROVED AS TO CONTENT: Billow t , Assistant City r APPROVED AS TO FORM: � //�- JuStijfi. P itt, Assi tant City Attorney ccdocs/RES. Adoption — LHA PILOT Waiver FY 2014 September 22, 2015 HOUSING AUTHORITY OF THE CITY OF LUBBOCK �GSiNG AUS11 , 2.1 P.O. BOX 2568 LUBBOCK, TEXAS 79401 MAIN OFFICE 806.76191 FAX 762.0836 September 8, 2015 Bill Howerton Assistant City Manager City of Lubbock PO Box 2000 Lubbock, TX 79457 Re: PILOT no Historically, the Lubbock Housing Authority has requested that the City of Lubbock waive the Payment in Lieu of Taxes (PILOT) calculated based on our rental income. Some years ago, the City Council requested documentation of the Housing Authority's capital improvement expenditures to show that the Lubbock Housing Authority was actively maintaining Lubbock's Public Housing units. Our PILOT documentation, form HUD -52267 is attached and the numbers are from our FY 2014 audit for the year ending on September 30, 2014, The Lubbock Housing Authority (LHA) receives a formula grant on an annual basis for capital improvements. This grant is referred to as the Capital Fund Program or CFP. This grant amount varies from year to year depending on HUD's budget. Total Capital Improvement Grant spending for LHA's Public Housing in the past year has been $508,687. Once again, the Housing Authority of the City of Lubbock would request that the City Council waive our payment of the PILOT. Sincerely, ✓ 4(, z,+ Mike Chapman Executive Director Computation of Payments in Lieu of Taxes For Fiscal Year Ended 2014 U.S. Department of Housing and Urban Development Office of Public and Indian Housing OMB Approval No. 2577-0026 (Exp. 10/31/2009) Public reporting burden for the collection of information is estimated to average .4 hours. This Includes the time for collecting, reviewing, and mponing the data. The information will be used for HUD to ascertain compliance with requirements of Section 6(D) of the U.S. Housing Act, which provides for PHA exemptions from real and personal property taxes, and inclusion In the formula data used to determine public housing operating subsidies. Response to this request for information is required in order to receive the benefits to be derived. This agency may not collect this information, and you are not required to complete this form unless it displays a currently valid OMB control number. Name of Loral Agency: Location: Contract Number: Project Number: Lubbock Housing Authority I Lubbock, TX WA WA Part I - Computation of Shelter Rent Charged. 1. Tenant Rental Revenue (FDS Line 703) y 580,695.00 2. Tenant Revenue Other (FDS Line 7D4) 27,561.00 3. Total Rental Charged (Lines 1 & 2) $ 608,256.00 4. Utilities Expense (FDS Une 931 - 939) 127,110.00 S. Shelter Rent Charged (Line 3 minus Une 4) 481.146.00 Part II - Computation of Shelter Rent Collected. To be completed only If Cooperation Agreement provides for payment of PILOT on basis of Shelter Rent Collected.) 1. Shelter Rent Charged (Line 5 of Part I, above) $ 481.146.00 2. Add: Accounts Receivable -Tenants (FDS Lines 126, 126.1, & 126.2) at beginning of fiscal year 28,125.00 3. Less: Tenant Bad Debt Expense (FDS Line 964) 23,987,00 4. Less: Accounts Receivable - Tenants (FDS Lines 126, 126.1, & 126.2) at end of fiscal year _ 20,606.00 5. Shelter Rent Collected (Une 1 plus Line 2 minus Lines 3 & 4) 464.678.00 Part III - Computation of Approximate Full Real Property Taxes. (1) Taxing Districts (2) Assessable Value (3) Tax Rate (4) Approximate Full Real Property Taxes Total 0.00 Part IV - Limitation based on Annual Contribution. (To be completed if Cooperation Agreement limits PILOT to an amount by which real property taxes exceed 20% of annual contribution.) 1. Approximate full real property taxes f n nn 2. Accruing annual contribution for all projects under the contract s 3. Proreta share of accruing annual contribution - 4. 20% of accruing annual contribution (20% of Line 3) 0.00 5. Approximate full real property taxes less 20% of accruing annual contribution (Line 1 minus Une 4, if Line 4 exceeds Line 1, enter zero) s Part V - Payments In Lieu of Taxes. 1. 10% of shelter rent (10% of Line 6 of Part I or 10% of Line 5 of Part H, whichever is applicable)•• $ 46,468.00 2. Payments In Lieu of Taxes (If Part IV Is not applicable, enter the amount shown on Une 1, above, or the total In Part 111, whichever is the lower. if f 46.466.00 Part IV Is applicable, enter the amount shown on Line 1, above, or the amount shown on Line 5 of Part IV, whichever Is lower.) • Same as Line 2 if the statement includes all projects under the Annual Contributions Contract. If this statement does not Include all projects under the Annual Contributions Contract, enter prorate share based upon the development cost of each project, •• If the percentage specified in the Cooperation Agreement or the Annual Contributions Contract with HUD Is lower, such lower percentage shall be used. Warning: HUD will prosecute false claims and statements. Conviction may result In criminal and/or civil penalties (18 U.S.C. 1001, 1010, 1012: 31 U.S.C. 3729, 3802). Prepared ey: Kris Schroeder Approv ay Mi hap Name:. Name: Title: Fina a Director Date: 07/09/2015 Title: Executive Director Date: 07/09/2015 Previous Editions are Obsolete Page 1 of 1 form HUD -52267 (8/2005) Print i, Reset