City reviews proposed improvements to Tax Increment Financing

City reviews proposed improvements to Tax Increment Financing

The City’s Combined Economic Development and Housing Committee heard a briefing from the Office of Economic Development (OED) on Tax Increment Financing (TIF) and its applicability for encouraging mixed income housing. TIF is used to stimulate new investment and increase real estate values.

Proposed improvements to City TIF policy include creation of an Affordable Housing Trust Fund to incentivize developers to build affordable units in market-rate areas and market-rate units in areas with concentrations of affordable units.

Since 2005, the TIF program is the only tool the City has consistently used to promote mixed-income housing by helping facilitate 2,320 affordable housing units.

Currently, any increase in property tax values over the base value of the District is paid into a special TIF fund to finance improvements within the District. TIFs limit financial risk as funding only occurs when a project is completed and City Council approved requirements are met.

To view a complete copy of the presentation click here.

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