HOWELL – A resident has asked the Howell Township Council about a financial option the developer of a proposed affordable housing project is expected to employ.
Howell Family Apartments LLC (the Walters Group) is seeking approval from the Planning Board to construct nine two-story buildings at West Farms and Fort Plains roads. The application is currently before the board.
According to testimony presented by representatives of the Walters Group during a recent Planning Board meeting, all 72 apartments would qualify as affordable housing and be rented to individuals and families whose income meets certain guidelines.
During a March 6 council meeting, resident Steven Johnson asked about the payment in lieu of taxes (PILOT) program the Walters Group is expected to use if the apartment complex is constructed. Johnson said information was disseminated which indicated the program would run for 50 years and not for 30 years.
Under the terms of a PILOT program, the Walters Group would pay a fixed annual amount to Howell for 30 years in lieu of paying an annual property tax that would be determined based on the assessed value of the apartment complex and could vary from year to year.
Howell Director of Law Joe Clark confirmed there will be a 30-year PILOT program and a 30-year mortgage for the proposed apartment complex.
Johnson asked if the PILOT program would terminate if the mortgage is paid off sooner than 30 years and if that meant annual property taxes would be paid based on the assessed value of the apartment complex.
“As soon as the mortgage is paid off, that (PILOT) exemption ends,” Clark said.
