Waters at Gateway is a multi-family affordable housing development consisting of 276
apartments, of which 270 apartments will be for persons whose income is below 60% of the area
median income (AMI) for Savannah, and six apartments will be used for persons whose
income is below 80% of the AMI. The Housing Authority of Savannah, as co-developer of this
property, is enabling the financing of the development and will be participating in the ownership
structure of this development. Council has previously approved zoning for this development and
authorized the sale of an abandoned right of way for the development.

Under Georgia law (O.C.G.A. Sec. 8-3- 8), the property of a housing authority, including
any housing development in which a housing authority participates, is exempt from all taxes and
special assessments. A housing authority may agree to make payments in lieu of taxes for the
services provided by a city, and the City’s Legal and Housing staff have negotiated a Payment in
Lieu of Taxes (“PILOT”) Agreement.

The PILOT Agreement provides for the Housing Authority of Savannah to pay to the
City the sum of $55,200.00 per year in lieu of
property taxes. This annual payment will increase each year by either 2% or the percentage
increase in the AMI, whichever is lesser. This payment will be in addition to any fees for Water
and Sewer services, Fire services, Sanitation services and Stormwater treatment services to the
extent these services are not included in ad valorem taxes. The amount of $55,200.00 was
determined by City staff based on the amount of taxes that are paid by privately owned
apartment complexes.

Approval