Even though the Housing Authority of Williamsburg doesn’t have to pay property taxes, the organization recently gave several thousand dollars to the city to help cover services provided by the city for its residents.
On Feb. 23, the housing authority gave the city of Williamsburg $17,483 for Payment in Lieu of Taxes (PILOT).
PILOT is a payment in lieu of taxes, which is made to compensate a local government for some or all of the tax revenue that it loses because of the nature of the ownership or use of a particular piece of real property. Usually it relates to the foregone property tax revenue.
“The Housing Authority is, by state law, exempt from real estate taxes. However, we make these payments to the taxing bodies for the services they provide to public housing residents,” said Williamsburg Housing Authority Executive Director James Lovitt.
“Providing financial support to our local governing bodies is the right thing to do even though we are tax exempt. We are limited by federal law as to the amount of the PILOT payments. However, we always pay the maximum amount permitted.”
Lovitt estimates that the housing authority has been making such payments for over 30 years.
“We make PILOT payments every year to the three taxing bodies. We believe in paying our share to support governing bodies’ services and functions that benefit our residents and, indirectly, the entire community,” Lovitt said.
“The Authority wants to help soften the budget crunch for the City of Williamsburg, Whitley County and for the Williamsburg Independent School District.”
The Housing Authority of Williamsburg exists to provide safe, decent and affordable housing for lower-income families, the elderly, and persons with disabilities, and to foster among the residents served by the Authority economic self-sufficiency and a sense of community and pride in the neighborhoods where they reside.