Shelby County committee evaluates affordable housing and tax incentives for low-income families

The P.I.L.O.T. Ad Hoc Committee Working Group convened on May 2, 2025, to discuss critical issues surrounding affordable housing and tax incentives in Shelby County, Tennessee. The meeting focused on the implications of the Payment in Lieu of Taxes (P.I.L.O.T.) program, particularly in relation to the Health Education Board's initiatives.

The discussion began with a review of income thresholds for families in Shelby County, highlighting that a family of four would be considered very low income if earning around $40,000 annually. This context set the stage for understanding the housing crisis in the area, where there is a significant shortfall of affordable residences—estimated at 44,000 units.

Committee members emphasized the importance of the P.I.L.O.T. program as a means to address this housing deficit. They noted that without such incentives, the situation could worsen, further complicating the affordability landscape for residents. The committee acknowledged that the issues surrounding affordable housing have persisted for decades, with the Health Education Board's involvement dating back to 1978.

A key point raised during the meeting was the need for transparency and accountability in the processes governing tax incentives and affordable housing initiatives. Members expressed concern over the lack of documentation and oversight, which hinders public understanding and trust in the system. They called for a structured approach to ensure that agencies receiving incentives are held accountable for their commitments to the community.

In response, representatives from the Health Education Board clarified that their role is not to grant funds but to defer taxes on properties undergoing rehabilitation. They assured the committee that the county would still receive 50% of the taxes from these properties, even during the P.I.L.O.T. period, thus maintaining a revenue stream while supporting the revitalization of distressed properties.

The meeting concluded with a consensus on the necessity of improving the framework for affordable housing and tax incentives in Shelby County. The committee plans to continue its work on establishing clearer guidelines and accountability measures to better serve the community's needs.