Housing authority PILOT is waived
RUSSELLVILLE — City councilmembers recently voted to waive a payment in lieu of taxes, often called PILOT, from the Russellville Housing Authority.
Public housing authorities do not pay normal property taxes. Instead, federal regulations require them to instead set aside a payment in lieu of taxes. The amount is determined by a federal formula tied to the housing authority’s rental income.
Tompkins said the payment totals about $18,000 this year. He said it was about $12,000 last year.
“If they didn’t waive it, we’d have to pay that out,” he said. “It helps us spend that money some other way.”
Tompkins said the chousing authority oversees 209 public housing units. He said 47 households are on the waiting list for public housing, which includes 30 applicants seeking one-bedroom units, eight seeking two-bedroom units, eight seeking three-bedroom units, and one seeking a four-bedroom unit.
Tompkins said public housing rent is based on household income.
“It can range from zero to $400,” he said.
The housing authority also administers the Section 8 housing voucher program, which helps qualifying residents pay rent in privately owned housing, Tompkins said.
Voucher holders typically have about 30 days to secure a rental unit before the voucher expires, though extensions can be granted.
Tompkins said some landlords decline vouchers because federal rules require housing inspections and tie payments to fair market rent limits.
He said Franklin County’s fair market rent sits around $700, but newer apartments often rent for between $900 and $1,200. Many Russellville public housing units date back to the 1950s and 1960s, he said.
Tompkins said housing authorities nationwide also face reductions in funding after the federal government reduced public housing operating funds by 14.4%.
He said the housing authority also provides assistance programs for residents, including buying shoes for children who live in housing authority properties at the start of the school year, as well as obtaining passes for the city pool during the summer.
He said public housing often provides a starting point for families who need assistance.
