For a developer to receive an abatement for property taxes on the leased property, as calculated at 100% of the County’s real property tax due on the leased property for a period of 15 years, a developer must enter into a PILOT with the County. The PILOT must include the following requirements:
a. The developer must not use a contractor or subcontractor for any part of the qualifying development if they have three (3) or more final penalties totaling at least $5,000 each, for violations of applicable wage and hour laws over the past three (3) years.
b. The developer must ensure that 25% of the workers constructing the qualifying development are residents of Montgomery County.
c. The property must contain a qualifying development pursuant to 52-24A of the County Code.
d. The qualifying development must be more than 8 stories above ground and located on land owned by WMATA and leased to the developer by WMATA.
e. At least 50% of the square footage of the qualifying development must consist of residential apartment units located in high rise residential apartment buildings.
f. At least 25% of the qualifying development’s Moderately Priced Dwelling Units (“MPDUs”) required under Chapter 25A of the County Code must be maintained and rented to persons or households whose income is not more than 50% of the area median income (“AMI”).
g. The developer must execute, and the County must record among the land records, a covenant to maintain the affordable housing required under Section 52-24A of the County Code and these regulations which runs with the land for 15 years from the date that the qualifying development receives a use and occupancy permit for residential units. If the use and occupancy permit is issued on a per building or per floor basis, separate covenants will be recorded to accurately reflect the commencement date of the covenants. At the Director’s discretion, the affordable housing covenant required under this subsection g. may be included as part of the MPDU covenant required under Chapter 25A; however, nothing in Section 52-24A or these regulations alters the MPDU requirements and procedures under Chapter 25A of the County Code.
h. The developer must notify the Director of the addition, sale, transfer, assignments, or other termination of the property as a qualifying development not less than thirty (30) days prior to the effective date of any such event.
i. The developer must provide annually verified compliance certificates on a form approved by the Director, and supporting documentation, to the Director every year during the covenant period. Supporting documentation includes: (i) rent rolls, (ii) household income certifications, (iii) financial audits, and (iv) any other documentation that the director deems necessary to ensure the developer’s compliance with Section 52-24A of the County Code and this regulation.
j. The developer must permit the County to examine its books and records upon reasonable notice and during normal business hours. The developer must retain its books and records for a period of five (5) years after the expiration of the covenant period.
k. The developer must comply in all respects with the provisions of Section 7-501 of the Tax-Property Article and Section 52-24A of the County Code.