The City of Kalamazoo can support affordable housing developments by approving Payments in Lieu of Taxes (PILOT) for projects that include affordable units. The PILOT allows the property to pay a set service charge instead of ad valorem taxes on eligible low-income housing units.
To be considered for a PILOT, the development must have demonstrated financial support from the Michigan State Housing Development Authority (MSHDA). The City Commission will also consider the impact the proposal will have on the city, and the benefits it provides to residents. Additionally, PILOT applicants must be designated as one of the following:
PILOT proposals must be received at least six weeks before the City Commission meeting where the PILOT resolution will be considered. If the property requires a rezoning or a zoning variance, plan for additional time (approximately four weeks for a variance and ten weeks for a rezoning request). Both types of approvals will require neighborhood outreach and public hearings. For questions about zoning approval email firstname.lastname@example.org.
PILOT requests are commonly submitted for projects that are also seeking Low Income Housing Tax Credits (LIHTC) from MSHDA. To accommodate all information requested for LIHTC applications, PILOT proposals are reviewed according to the following schedule:
The City Commission may deem a proposed project as eligible for a PILOT, but the State of Michigan actually issues the PILOT. To make sure the PILOT proposal is complete, please make sure you include the following:
The developer of the proposed project must send a written proposal to be considered for a PILOT. The proposal should be sent to email@example.com. Use “PILOT Proposal” and the project address in the subject line.
Submit a PILOT Proposal