Prince George’s County lawmakers have approved a tax break for a rare affordable housing project in the big New Carrollton mixed-use development, adding to a patchwork of public financial aid that accounts for most of the project’s total cost. Developer Urban Atlantic says, and the county agrees, the project couldn’t happen otherwise.
The County Council unanimously approved a payment in lieu of taxes agreement, or PILOT, at its Oct. 8 meeting, to provide financial support for a planned new multifamily building at 4051 Garden City Drive with 50 units priced for extremely low-income households — those earning up to 35% of the area’s median income, on average, a rung of the income ladder for which the region produces a scant amount of housing, especially outside the District.
The PILOT agreement entails waiving property taxes over 40 years, a deal the county values at about $1.5 million in savings to the developer. Together with a nearly $2.8 million grant from the county’s HOME Investment Partnership program, a federal pass-through subsidy, that brings total funding from the county to $4.3 million, or 22% of the $19.4 million total project cost.
