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HOBOKEN PILOTs - Principles 1. We support Workforce housing as an essential component of Hoboken's residential real estate portfolio. 2. A transparent and thorough review of all existing PILOTS should be undertaken immediately to ensure compliance with the terms of the agreements and approval of any new PILOTs should be thorough and transparent, with a clear articulation of community benefit. 3. The CT PILOT has expired. There is no clear basis to claim that continuation of PILOT payments on a month-to-month basis constitutes an "implied" contract. 4. According to the CT management company, the CT mortgage has been paid and there may be no ongoing relationship with HUD or identification of a an alternative HUD program which might cover CT.

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5. Therefore, the City could be extending a PILOT for private property without an understanding of whether workforce housing will continue or what the community benefit would be from the PILOT. 6. A Council vote on "extension" of the expired CT PILOT should not be rushed until all legal, policy and community benefit issues have been reviewed.

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7. However, if the Council approves a CT PILOT, the terms should be for a limited period of time, mandate that the owners continue the building as Workforce housing as long as the PILOT is in effect, and that it be precluded from flipping the building to a Condo, or taking any other actions that remove Workforce Housing tenants in good standing, or in any way generate a "windfall" profit for the owners and reasonable terms be included to allow for cost of living adjustments to payments made to the City.

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8. In summary: a CT PILOT would be a "Standstill" agreement to continue to operate the building as if it was still under the initial PILOT, and as if all HUD and other original legal requirements remain in effect.

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9. The Council should state that a CT PILOT is not a precedent for other PILOTs when they expire, and that each situation must be reviewed separately and distinctly. HOBOKEN TAX REFORM COALITION

Mission The mission of HOBOKEN TAX REFORM COALITION, a community-based organization, is: to ensure fiscal responsibility and accountability in Hoboken government; to reduce waste and eliminate mismanagement in government to encourage broad and open policy discussion between citizens and elected officials to establish a fair allocation of property taxes among all Hoboken property owners Objectives 1. Drive a significant reduction in property taxes without compromising the safety and soundness of Hoboken. 2. Set standards for smart PILOTs that improve the fiscal condition of the City. 3. Remove the taxpayer guarantee to the Hoboken University Medical Center. 4. Force the initiation of a property revaluation as per current law. 5. Act as a fiscal watchdog / public advocate for the taxpayers of Hoboken.


Hoboken PILOTs Principles