HomeMy WebLinkAboutMemo - Read Before Packet - 7/2/2013 - Memorandum From Julie Brewen Re: Council Questions Regarding Pilot Refund Request - Agenda Item #7MEMORANDUM
TO: Honorable City Council
FROM: Julie J. Brewen, Executive Director
DATE: July 1, 2013
SUBJECT: Council Questions Regarding PILOT Refund Request
How will FCHA use the Payment in Lieu of Taxes (PILOT) refund and for what purposes
has FCHA used these funds over the last five years?
The PILOT refund will be used for operations of the 154 public housing units. Operations
include all property management functions such as routine maintenance, tenant work order
requests, required staffing, etc. The Federal Public Housing subsidy has been underfunded by
Congressional appropriations for several years. For Federal Fiscal Year 2013, FCHA will
receive 13.5% ($81,000) less than the amount HUD determines is needed to properly operate and
maintain these properties. Deferred maintenance is one result of underfunding.
Over the past five years, the PILOT refund has been used for property operations. The federal
appropriation for this program has funded 85.5% of full operational funding during this period.
How is the PILOT calculated?
This PILOT was established in the Cooperative Agreement document executed between the City
of Fort Collins and the Fort Collins Housing Authority in 1971 when the City Council
established the Housing Authority. The PILOT is calculated by a federal formula of 10% of
tenant rents less utilities and Family Self Sufficiency escrow payments. Tenant rents are based
on 30% of their household’s income.
Again, we thank you on behalf of the families served for your consideration of this request.