TITLE
Title
MEMORANDUM OF UNDERSTANDING BETWEEN GUILFORD COUNTY AND CITY OF GREENSBORO HOUSING AUTHORITY - ANNUAL PAYMENT IN LIEU OF TAXES FOR NON-ROUTINE MAINTENANCE, UPGRADING AND MODERNIZATION OF EXISTING HOUSING UNITS
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SPONSOR
Sponsor
Marty Lawing
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BACKGROUND
Background
The City of Greensboro Housing Authority (GHA) is requesting Guilford County enter into a Memorandum of Understanding (MOU) regarding the annual Payment in Lieu of Taxes (PILOT). Guilford County and the Housing Authority have operated under a previous Memorandum of Understanding that was approved in June 1987. The GHA PILOT is used to perform non-routine maintenance, upgrade and modernize housing units, and to pay debt service for such purposes. GHA had a similar agreement with the City of Greensboro.
PILOT is paid by housing authorities in lieu of ad valorem property taxes in accordance with 42 USCA 1437(d) and N.C.G.S. 157-31. The PILOT is equal to the total rent revenue collected by the authority net of all utility costs multiplied by (ten) 10 percent. The estimated total payment in lieu of taxes for FY 2016 for the Greensboro Housing Authority is $233,000, with $126,000 allocated to Guilford County and $107,000 allocated to the City of Greensboro. The PILOT is pro-rated and distributed based upon local government tax rates. Prior to FY 2016, the PILOT was forwarded to the City of Greensboro to repay $1,500,000 tax-exempt variable rate general obligation bonds issued by the City on March 3, 1998, on behalf of GHA, for facility improvements. These bonds were retired in June 2015.
The Housing Authority has entered into Cooperation Agreements with the City of Greensboro dating back to 1949, to allow the PILOT to be used exclusively for facility maintenance and upgrades. The City of Greensboro and GHA entered into a new MOU on October 20, 2015. The Cooperation Agreements and the proposed MOU would pertain to twenty (20) existing communities owned by the Housing Authori...
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