Bloomington city officials are developing a specific fund for affordable housing PILOT payments after city legal found Indiana code requiring it.
PILOT, or Payments in Lieu of Taxes, are funds from developers that support the city’s affordable housing initiatives in exchange for providing affordable rental units.
The city has four PILOTs with Cambridge Square, Henderson Court, Country View Apartments, and Evergreen Village.
At Wednesday night's city council meeting, Controller Jessica McClellan said standard practice was to deposit those funds into the general fund.
“Payments that we've already received, which is about $150,000 in PILOT payments. Will transfer that into this fund. We will start depositing the payments going forward into this fund,” McClellan said.
She said the city’s HAND department already administers housing programs and will use the funds as defined by state code.
A public commenter asked whether there is any consequence for not creating the fund when the program was created years ago.
“This has never been brought up as an issue when we've had our annual audits. And I don't see anything in code that gives a consequence for not creating this fund,” McClellan said.
The resolution passed unanimously.
Indiana Code § 5-20-5-15.5 provides that revenues deposited into the Affordable Housing Fund may be used only for limited purposes, including:
- Providing financial assistance to individuals and families with incomes at or below 80% of county median income to help purchase or lease housing.
- Paying expenses related to administration of the fund.
- Making grants, loans, and loan guarantees for the development, rehabilitation, or financing of affordable housing projects.
- Offering technical assistance to nonprofit affordable housing developers.
