11 - Waiver of a portion of the Paris Housing Authority 2023 PILOTNo. 11
Memorandum
TO: Mayor, Mayor Pro Tem & City Council
FROM: Grayson Path, City Manager
SUBJECT: Waiver of a portion of the Paris Housing Authority 2023 PILOT
DATE: February 26, 2024
BACKGROUND:
On March 7, 1950, the City of Paris and the Paris Housing Authority (PHA) entered in to an
agreement that in essence created the PHA within the City. In short, the PHA agreed to provide
the services they do, and the City would fulfill initial roles in the agreement to make them
successful. Those initial roles by the City have all been fulfilled, but our continued goal is their
success on behalf of our residents who are income -eligible to live in these facilities. A term of the
agreement is the PHA would issue a "Payment In Lieu of Taxes" (PILOT) in the place of property
tax. This is calculated by formula from HUD. Some years the City receives a payment, some years
we do not. We have seen the PILOT range from $0 to $10k each year. Again, the purpose of a
PILOT vs. standard property tax is to decrease their cost so that they can divert more Federal Funds
to assisting residents with low cost living arrangements, while still providing some compensation
to the city for basic services we provide these residents (like all other city residents) such as Streets,
Parks, Recreation, Police, Fire, EMS, etc. The PISD, County and PJC all receive a PILOT through
the City proportionate to each entity's tax levies.
In August 2021, the City initiated a project to convert the PHA's Booker T Washington and George
Wright locations to 911 -based addressing. Prior to this, both sites had non -conforming addressing
unique and specific to their sites which created conflicts for our first responders. Working with the
Arkansas -Texas Council of Governments (ATCOG) who manages our 911 -addressing, as well as
the PHA management, we were successful in updating their addressing. When seconds matter in
an emergency, this change allowed for much faster responses. It also had the secondary added
benefit of assisting residents with deliveries.
The PHA set out to perform the physical changes needed to conform to the new 911 -addressing,
mainly new signage. They completed some of this in 2022.
STATUS OF ISSUE:
The PHA was informed in June 2023 that their outward facing structures still needed physical
addressing changes visible from the road, as well as monument signage within their complex to
complete the changes. This was initially missed by the PHA in 2022. They have since then
performed this work and have amassed expenses they had not budgeted for. As this was a City -
initiated project for public safety, the PHA once again requests that the expense tied to this work
be taken from the PILOT the city expects to receive. To our knowledge, no waiver request is being
made of PJC, PISD or Lamar County.
A waiver of the 2021 PILOT (2022) in the amount of $4,000.00 was granted by the City Council
on March 28, 2022, for their first round of expenses. No waiver was requested for the 2022 PILOT
(2023). The PHA is now requesting a waiver of $5,177.75 from their 2023 PILOT (2024) for
expenses accrued with this latest round of addressing changes.
To our knowledge, the waiver in 2022 was the first the City has ever granted to the PHA. As was
stated then, the City Manager is aware that some communities do allow waivers for case-by-case
appropriate reasons. In addition, there have been years when the City would receive no payment
under the HUD formulas, so it is not unheard of to receive nothing. We would however only waive
the City's portion of the PILOT, not the other taxing entities.
The intent and spirit of agreements between Housing Authorities and Cities is to create a housing
opportunity for residents of extremely low income levels. The City itself does not finance any of
these expenses; that is performed by HUD. Nevertheless, it is the intent that the City cooperate
with the PHA to assist with their overall mission.
BUDGET:
To our knowledge, the 2023 PILOT to the City is $9,460.44. The total request for waiver is
$5,177.75 to cover known expenses as itemized below:
1. SCS Graphics — Monument Signs $4,340.00
2. Forrest Signs — Street / Directional Signs on Buildings $795.25
3. Forrest Signs — Same as above $42.50
4. Total $5,177.75
The remaining balance of $9,460.44 - $5,177.75 = $4,462.69 would still come to the City.
OPTIONS:
1. Approve a resolution waiving a portion of the City's 2023 PILOT in the amount of
$5,177.75 for non -budgeted expenses tied to address changes for the Paris Housing
Authority.
2. Approve a resolution waving a different amount of the City's 2023 PILOT, up to the
maximum available of $9,460.44.
3. Request additional information to be brought back to the City Council for consideration.
4. Do not approve of a waiver of the City's 2023 PILOT.
RECOMMENDATION:
1. Approve a resolution waiving a portion of the City's 2023 PILOT in the amount of
$5,177.75 for non -budgeted expenses tied to address changes for the Paris Housing
Authority.
HOUSING AUTHORITY OF THE CITY O PARIS
I.S
650 7`h SW -Office, Paris, Texas 75460
P.O. Box 688, Paris, Texas 75461
Phone (903).784-6651 Ext. 26 Fax (903) 784-6678
January 16, 2024 RECEIVED
City of Paris
Mr. Grayson Path, City Manager QtY Manager
135 SE 1st Street
Paris, TX 75464
RE: Waiver of PILOT ^
Dear Mr. Path,
The Board of Commissioners of the Housing Authority of the City of Paris requests that a
portion of the annual PILOT (Payment in Lieu of Taxes) be waived for the FYE 06/30/2023 to
offset the cost of signage required by the 2021 address change of properties.
This request is being made to counter the costs incurred of the additional signage due to the
address changes that the City of Paris mandated for the properties of George Wright Homes and
Booker T Washington Homes. The calculated PILOT is $9460.44(please see attached). The
actual signage costs are $5177.75 (invoices attached). In addition, the administrative costs
incurred to procure and place signage. The total costs of the signage required by the City, is an
expense that was not budgeted. It would be beneficial if the costs could be restored by the
waiver of our annual PILOT.
We respectfully request the waiver of the PILOT for the FYE 06/30/2023. On behalf of the 234
families residing in these properties, I would like to express my sincere appreciation for this
consideration.
Your commitment to supporting affordable housing for our community's lowest income families
is commendable. Thank you for your assistance and support as we have worked to comply with
the requirements of this address change.
Sincerely,
)�Lqzw�� A14/9
Elizabeth Brooks
Executive Director
Attachments: Computation of PILOT for FYE 06/30/2023 & Invoices for signage
Computation of Payments U.S. Department of Housing and Urban Development
in Lieu of Taxes Office of Public and Indian Housing
For Fiscal Year Ended 6/30/2023 OMB Approval No. 2577-0072 (Exp. 11/30/2007)
Public reporting burden for the collection of information Is estimated to average A hours. This includes the time for collecting, reviewing, and reporting the data. The
information will be used for HUD to ascertain compliance with requirements of Section 6(D) of the U.S. Housing Act, which provides for PHA exemptions from real and
personal property taxes, and inclusion in the formula data used to determine public housing operating subsidies. Response to this request for information is required in
order to receive the beneifts to be derived. This agency may not collect this Information, and you are not required to complete this form unless It displays a currently
valid OMB control Number.
Name of LocalAgenc
Location
Contract Number
Project Number
ads HousingAuthorityeee.._�
ons Tx ,�
P.. „_ svv,... a.." �.v.
,,................
_. __ .. .... .....d"
TX0�48
.....
Part I - Computation of Shelter Rent Charged.
.,. .....�... ................. ...
.....
M, � e
1. Tenant Rental Revenu..
Revenue (FDS Line 703)
$
642,465.80
2. Tenant Revenue Other (Excess utilities)
$
-
3. Total Rental Charged (Lines 1 & 2)
$
642,465.80
4. Utilities Expense (FDS Line 931 - 939)
$
547,861.44
5. Shelter Rent Charged (Line 3 minus Line 4) e..........".,._........_ w
�...� ...pe
$ ..
94,604.36
�
Part II - Computation of Sheiter, Rent Collected.. To be completed._
tion e of h Rent
only ff Cooperation Agreement provides for Payment of PILOT on basis of Shelter Colleted.)
Payment PILOT Collected.)
1. Shelter Rent Charged 5 of Part I, above
rg (Line )
$
94,604.36
2. Add: Accounts Receivable - Tenants (FDS Lines 126, 126.1, & 126.2) at beginning of fiscal year
3. Less: Tenant Bad Debt Expense (FDS Line 964)
4. Less: Accounts Receivable - Tenants (FDS Lines 126, 126. 1, & 126.2) at end of fiscal year
5. Shelter Rent Collected (Line 1 plus Line 2 minus Lines 3 & 4)$
-...._..._..._...........-v.�ri.a_ ...�� ...._......_e. ......._.........._........_..
..
94,604.36
..._ .n Wee..A.. e....... .. .-.
Part Ill -Computation of Approximate Full Real Property Taxes.
Districts 1 (2) Assessable Value 1 (3) Tax Rate 1 (4) Approximate Full Real Property Taxes
Total
Part Iv -Li' mltatfon Based on Annuaun'— (To be completed if Cooperation Agreement
limits PILOTto 'an by which real propertytaxes exceed 20%
of annual contribution.)
1. Approximate full real property taxes
2. Accruing annual contribution for'all projects under the contract
3. Prorata share of accruing annual contribution'
4.20% of accruing annual contribution (20% of Line 3) $
5. Approximate full real property taxes less 20% of accruing annual
_ contribution (Line 1 minus Llne 4, If Line exceeds Line 1, enter zero) '
Part V - Payments in of . .............. ........._�..._
ym Taxes
1. 10°/C of shelter rent (10% of Line 5 of Part I or 10% of Line 5 of Part 11,
whichever is applicable)" $ 9,460.44
2. Payments in Lieu of Taxes (If Part IV is not applicable, enter the amount $ 9,460.44
shown on Line 1, above, or the total in Part III, whichever is the lower. If
Part IV is applicable, enter the amount shown on Line 1, above, or the
_amount shown on Line 5 of Part IV, whichever is lower.)
'Same as Una 2 If the statement includes all projects under n ontr.�...ntrac,,, . h .,.,..t doe. .... e a �is un _ ..An � ......
the Annual Contributions Contract. ff this statement does not ioduria all pro)ecis under the Annual
Contributions Contract' enter prorate share based upon the development cost of each project.
"If the percentage specified in the Cooperation Agreement or the Annual Contributions Contract with HUD is lower, such lower percentage shall be used.
Warning: HUD will proseaAs false clalms-and statement. Conviction ma result In criminal andlar civil penalties 18 U.S.C. 1001.1010, 1012:31 U.S.C. 3729, 380
_.� M...... . , �.".".,,.,...".W. ..._..
Prepared by: Ronald Urlaub Approved By:
Name. Name:
"a
--o
...........0..w_.._ _.."..... "....._
P�.�.... ., _..._ w� ... �.._
Title: Fee Accountant �� ��� Dale: 8130123 Title: Date:
......_�._Editionsarew.. ..... ..... ay.._.. g......�.�. ...wr... ........ ... ......
Previous Obsolete Pa e 1 of 1 form HUD -52267 (8!2005)
915 N. MAIN, PARIS, TX
903-737-8786
BILL TO
Paris Housing Authority
P. 0. Box 688
Paris, Texas 75461
DESCRIPTION
24" x 18" D/F R/E Sips
Unit Numbers
Paris Housing Auth
8.5" x 11" S/F Alum
Drop Box
22.5" x 13" S/F Alum
640 / 690 / 720 / 740 / 820 / 840 / 825 / 755
29.5" x 13" S/F Alum
1475 / 1455 / 1435/1401 / 1337 / 1.325
Thank You for Your Business!
7511
Invoice
DATE INVOICE #
10/3/2023 I 20231023
-TAX ID#_
P.O. NO.
TERMS
Net 30
QTY i RATE
AMOUNT
21 135.00
1
270.00
.1
1 -%,- 10.25
1
10.25
32.50
260.00
n6 42.50
255.00
Total
$795.25
. .....
Payments/Credits
$0.00
Balance Due
$795.25
915 N. MAIN, PARIS, TX
903-737-8786
BILL TO
Paris Housing Authority
P. O. Box 688
Paris, Texas 75461
DESCRIPTION
29.51" x 13" S/F Alum
1347
Invoice
DATE INVOICE #
10/16/2023 20231173
TAX ID
. . ..... . . ... .... .
P.O. NO.
QTY RATE
1l
, , 42.50
ThankYou for Your Business!
--
�f pa — -------------- . . % fe. e ... .............. . ...........
---;in vvA a credit card, a 3.75will be automatically added to
'
your total at check out
Total
Payments/Credits
Balance Due
TERMS
Net 30
AMOUNT
42.50
$42.50
$0.00
$42.50
'01• GRWAP SCS Graphics
3317 NE loop 286
Paris, TX 75460
903.785.4050
scs@scsgraphics.net
°�sctus • 6�'
INVOICE
BILL TO
Paris, Housing Authority
INVOICE # 8035
DATE 11/13/2023
DUE DATE 11/13/2023
ACTIVITY
QTY RATE
AMOUNT
Aluminum Frame
2 2,170.00
4,340.00
3 x 4 - Double sided frame
- Balance due upon receipt of signage. SCS Graphics reserves the
SUBTOTAL
4,340.00
right to repossess any signage provided & not paid. Sign removal,
attorney, court & collection fees will apply.
TAX
0.00
- Retums/Exchanges: Unfortunately, it is not possible for us to take
TOTAL
4,340.00
back & resell custom made signage. In the unlikely event you are not
happy with the final product, we will do our best to correct any related
BALANCE DUE
4,340.00
issues. If, for some reason, you need to cancel your order before we
finish your project, we will return your deposit, less any labor, materials
or artwork fees purchasedfused. However, if our costs are more than
your deposit, you will still be responsible for paying the difference.
Regulated by The Texas Department of Licensing and Regulation,
P.O. Box 12157, Austin, Texas 76711,1-800-803-9202, 512-463-
6599; www.license.state.tx.uslcompialnis.
TSCL# 18866
THANK YOU FOR YOUR BUSINESS!
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
APPROVING A PARTIAL WAIVER OF THE PARIS HOUSING AUTHORITY
("PHA") OF THE CITY OF PARIS' 2023 PAYMENT IN LIEU OF TAXES
("PILOT"); MAKING OTHER FINDINGS AND PROVISIONS RELATED TO
THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, on March 7, 1950, the City of Paris and the Paris Housing Authority of the
City of Paris (commonly referred to as "PHA") entered into an establishing agreement that
created a housing authority for the provision of low income housing within the City; and,
WHEREAS, a term of the establishing agreement is that PHA annually remit a
"Payment In Lieu of Taxes" ("PILOT") in lieu of ad valorem tax, the amount of which payment
is calculated by a formula from United States Department of Housing and Urban
Development; and,
WHEREAS, in August of 2021, the City initiated a project to convert PHA properties
Booker T. Washington Homes and George Wright Homes to 911 -based addressing to
expedite the City's provision of emergency services; and,
WHEREAS, as a result of this initiative, PHA incurred expenses including but not
limited to multiple letters, door-to-door education, numerous meetings, assistance with
making contacts for address changes, and giving residents several months to make the
changes to their personal billing; and,
WHEREAS, in 2021, PHA sought a waiver of its obligation to pay its 2021 PILOT of
$4,000.00 to defray those expenses, and the City Council granted that waiver; and
WHEREAS, in 2023, PHA incurred additional non -budgeted expenses related to the
re -addressing initiative related to additional signage in the amount of $5,177.75 and has
sought a partial waiver of its 2023 PILOT in that amount; and
WHEREAS, the amount of the 2023 PILOT is $9,460.44, and a partial waiver in the
amount of $5,177.75 will leave a balance of $4,462.69 payable to the city; and
WHEREAS, the City Council hereby finds that it is in the best interest of the City of
Paris and its citizens that the City Council approve a partial waiver of PHA's 2023 PILOT in
the approximate amount of Five Thousand One Hundred Seventy -Seven Dollars and 75/100
($5,177.75) .
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS:
Section 1. That the findings set out in the preamble to this resolution are hereby in
all things approved and are incorporated herein for all purposes.
Section 2. That the City Council agrees to waive a portion PHA's 2023 PILOT in the
amount of Five Thousand One Hundred Seventy Seven Dollars and 75/100 ($5,177.75) to
offset additional costs PHA incurred in 2023 related to the city -initiated 911 address
changes.
Section 3. That after said waiver, PHA will pay the remainder of the 2023 PILOT
in the amount of Four Thousand Four Hundred Sixty -Two Dollars and 69/100 ($4,462.69).
Section 4. That the waiver of PHA's 2023 PILOT is a one-time waiver, and future
requests by PHA for PILOT waivers will be considered on a case-by-case basis.
Section 5. That this resolution shall be effective from and after its date of passage.
PASSED AND APPROVED this 26th day of February, 2024.
Reginald B. Hughes, Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney