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Home My WebLink AboutResolution - 2020-R0304 - FY 2018 -2019 Waiver of Payment in Lieu of Taxes for LHAResolution No. 2020-RO304 Item No. 7.23 September 8, 2020 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Council of the City of Lubbock hereby adopts the recommendation of the Lubbock Housing Authority (LHA) of the City of Lubbock to grant waiver of the Payment in Lieu of Taxes (PILOT) for FY 2018 & 2019. Said LHA PILOT Waiver Recommendation is attached hereto and incorporated into 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 ATTEST: mk-�7- �7 Rebecca Garza, City Secretary APPROVED AS TO CONTENT: APPROVED AS TO FORM: Leisure, Assistant City Attorney ccdocs/RES. Adoption —LHA PILOT Waiver PY 2018 & 2019 September 8, 2020 DANIEL M. POPE, MAYOR JBBOOf �N 1 uA HOUSING AUTHORITY OF THE CITY OF LUBBOCK 1708 Crickets Ave Lubbock, Texas 79401 Main Office 806.762.1191 August 18, 2020 Bill Howerton Assistant City Manager City of Lubbock PO Box 2000 Lubbock, TX 79457 Re: PILOT MM 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 2018 and 2019 audit for the year ending on September 30, 2018 and 2019. 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 years has been $541,773 for 2018 and $304,736 for 2019. Once again, the Housing Authority of the City of Lubbock would request that the City Council waive our payment of the PILOT for FY 2018 and 2019. Sincerely, Mike Chapman Executive Director Computation of Payments in Lieu of Taxes For Fiscal Year Ended 2018 U.S. Department of Housing and Urban Development Office of Public and Indian Housing Eel zI Public reporting burden for the collection of Information Is estimated to average .4 hours. This Includes the time for cellecbng, reviewing, and mpotting the data. The Information will be used for HUD to ascertain compliance with requirements of Section 6(0) of the U.S. Housing Act, which provides for PHA exemptions fare mal and Personal property taxes, and inclusion In the formula data used to determine public housing operating subsidies. Response to this request for Information Is required in Omer to receive the benefits to be derived. This agency may not collect this Information, and you are not required to complete this form unless It displays a currently Valid OMB control number. Name of local Agangt Lorllon: Cwtvact Number: Project Number: Lubbock Housing Authority Lubbock, TX WA_ All Part I - computation or Shelter Rant charcial 1. Tenant Rental Revenue (FDS Una 703) fT_- 727,765.00 2. Tenant Revenue Other (FDS Line 704) 8018$ 00 3• Total Rental Charged (Unes 1 6 2) f 787,950.00 4. Utilities Expense (FOS Una 931 • 939) -202,190.00 5, Shelter Rent Charged (Line 3 minus Line 4) 9AFJ11II_n0 Pert 11 - Computation of Shelter (lent Canceled. To be completed only If Cooperation Agreement proVldes for payment of PILOT on basis of Shelter Rent Collected.) 1. Shelter Rent Charged (Line 5 of Pert I, above) { 585,760.00 2. Add: Accounts Receivable - Tenants (FDS Lin" 126, 126.1, 6 126.2) at beginning of Racal year 6,834.00 3. Lem! Tenant Bad Debt Expense (FDS Una 904) -40,796.09 4, Letsl Accounts Receivable - Tenants (FOS Lines 126, 126.1, 6 126,2) at and of fiscal year _ 11,217.00 S. Shelter Rent Collected (Una 1 plus Una 2 minus Unn 3 6 4) 863 015.00 Part In - Computation of Approximate Pull Real Property Tear. (1) lazing UinnRs (2) Assessable Value (3) Tax Rate (4) Approximate Full Real Property Taxes Total 0.00 Part IV - Umhatlon Rased on Annual Contribution. (To be completed if Cooperation Agreement Ilmits PILOT to an amount by which real property taxes exceed 20% of annual contribution.) 1. Approximate full real property taxes 4 2. Accruing annual contribution for all prejects under the contract 6 3. Prorate share of accruing annual contribution- 4. 20% of accruing annual contribution (20% of Line 3) 5. Approximate full real property taxes less 20% of accruing annual contribution (Une 1 minus Une 4, If Line 4 exceeds Una 1, enter gem) Part V - paymanto In Lieu of Tax". 1. 10% of shelter rent (10% of Line 6 of Part I of 10% of Una 5 of Part II, whichever is applicable)— f 5a,301.00 2. Payments In Uou of Taxes (If Part IV Is not applicable, enter the amount shown on Una 1, above, or the total In Part 111, whichever Is the lower. If Part IV Is applicable, enter the amount shown on Una 1, above, or the 6 amount shown on Line 5 of Part IV, whichever I$ lower.) • Same as Una 2 If the statement includes all prejects under the Annual Contributions Contract. If this statement does not Include all projects under the Annual Contributions Contract, enter prorate sham based upon the development con of each pmpct, •• 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. Conv may result in criminal m a I peMWU (is U I e1, 1010, 1012: 31 U.S.C. 3729, 3802). Prepared RYe Approved By: -- Name: Kris Schroeder Name: Mike Chapman Title: Finance Director Date: 08/16/2019 This, Executive Director Date: 08/16/2019 Previous Editions are Obsolete Page 1 of 1 form HUD-52267 (8/2005) Computation of Payments in Lieu of Taxes For Fiscal Year Ended 2019 U.S. Department of Housing and Urban Development Office of Public and Indian Housing OMB Public reporting burden for the Collection of Information is estimated to average .4 hours. This Includes the time for coll%oPng, reviewing, and reporting 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 Local Agency: Location: Contract Number Project Number: Lubbock Housin Authority Lubbock, TX N/A All Port I - ComPMtIM of shelter Rent Charged. 1. Tenant Rental Revenue (FDS Una 703) f 714 721.00 2. Tenant Revenue Other (FDS Una 704) 56 063.00 3. Total Rental Charged (Unes 1 a 2) t 770,804.00 4. Utilities Expense (FDS Line 931 - 939) -195,669.00 S. Shelter Rent Charged (Una 3 minus Line 4) 5Z5425 00 Part IM • Computation of Shelter Rent Colinted. To be Completed Only If Cooperation Agreement provides for payment of PILOT on basis of Shelter Rent Collected.) 1. Shelter Rent Charged (Une 5 of Part 1, above) 3 575 a1 5.00 2. Add: Accounts Receivable - Tenants (FDS Lines 126, 126.1, 6 126.2) at beginning of fecal year 11,217.00 3. Less: Tenant Bad Debt Expense (FDS Line 964) _ •g� 738.00 4. Less: Accounts Receivable - Tenants (FDS Lin" 126, 126.1, 6 126.2) It and of fiscal year -0,763.00 5. Shelter Rent Collected (Line 1 plus Una 2 minus Lines 3 B A) 524 851.00 Part IIt - Computation of Approximate Pull Real Proparty Taxies. (1) Taxing Districts (2) ASSesaahle Value (3) Tao Rate (4) Approximate Full Real Property Taxes Total 0.00 Part IV - Limitagen Rased on Annual Contribution. (To be completed If Cooperation Agreement limits PILOT to an amount by Which reel property taxes exceed 20% of annual contribution.) 1. Approximate full real property taxes = 2. Accruing annual contribution for all projects under the contract a 3. Prorate sham of accruing annual contribution- 4. 20% of accruing arrival contribution (20% of Una 3) 5. Approximate full real property taxes less 20% of UCruing annual contrbution (Line 1 minus Una 4, If Line 4 exceeds Una 1, enter aem) Part V • ►ayments In Lieu of Tax". 1. 10% of shelter rent (10% of Line 6 of Part I or 10% of Una 5 of Part II, whichever is applicable)— ;_ 52,485.00 2. Payments In Ueu of Taxes (If Part IV Is not applicable, enter the amount shown on Une 1, above, or the total In Part Ili, whichever Is the lower, If t Part IV is applicable, enter the amount shown on Une 1, above, or the amount shown on Line 5 of Part IV, whichever Is lower.) ' Same as Line 2 If the statement Includes all prGlecK under the Annual Contributions Contract. If this statement does not Include all projects under the Annual Contributions Contract, enter promote 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 Igwer, SUch lower percentage shall be used. warnings :IUD will pm entte false Darns ,,d statements. Conviction may n•s,Jt m cnn'unal an or ov i enan,es (16 S. 1001, 1010, 1012: 31 U.S.C. 3729, 3602). Prepared By: �— % Approved B Name; Kris Schroeder Name; MiKe Chapman rnle: Finance Director pm, M10@020 Tide, Executive Director pater 081101= erewOus camuns am uospmW Page 1 or 1 form IfYa-g23a7 (W200s)