How do Redevelopment Agencies secure funds?
The state law makes available to Redevelopment Agencies a method of obtaining funds called “tax increment financing.” On the date the City Council approves a redevelopment plan, the property within the boundaries of the plan has a certain total property tax value. If this total assessed valuation increases, most of the taxed that are derived from the increase go the Redevelopment Agency. These funds are called “tax increments.” Usually, the flow of tax increment revenues to the agency will not be sufficient in itself to finance the full scope of redevelopment activities and development projects. Therefore, Agencies issue bonds. These bonds are not a debt of the City or County and are repaid solely from tax increment revenue. Tax increment can be used only in the same project which generates the revenue, except for residential projects which benefit low- and moderate-income households. Twenty percent of the tax increment must be set aside into a special fund for low- and moderate-income
State law makes available to redevelopment agencies a method of obtaining funds called “tax increment financing.” On the date the city council approves a redevelopment plan, the property within the boundaries of the plan has a certain total property tax value. If this total assessed valuation increases, most of the taxes that are derived from the increase go to the redevelopment agency. These funds are called “tax increment” revenue. Usually, the flow of tax increment revenues to the agency will not be sufficient in itself to finance the full scope of redevelopment activities and development projects. Therefore, agencies issue bonds. These bonds are not a debt of the city or county and are repaid solely from tax increment revenue. Tax increment revenue primarily is used within the same project area where it originates, except for revenue utilized on residential projects which benefit low- and moderate-income households.
State law makes available to redevelopment agencies a method of obtaining funds called “tax increment financing.” On the date the city council approves a redevelopment plan, the property within the boundaries of the plan has a certain total property tax value. If this total assessed valuation increases, most of the taxes that are derived from the increase go to the redevelopment agency. These funds are called “tax increment” revenue. Usually, the flow of tax increment revenues to the agency will not be sufficient in itself to finance the full scope of redevelopment activities and development projects. Therefore, agencies issue bonds. These bonds are not a debt of the city or county and are repaid solely from tax increment revenue. Tax increments can generally only be used in the same project which generates them, except for residential projects which benefit low- and moderate-income households.
State law makes available to redevelopment agencies a method of obtaining funds called “tax increment financing.” On the date the City Council approves a redevelopment plan, the property within the boundaries of the plan has a certain total property tax value. If this total assessed valuation increases, most of the taxes that are derived from the increase go to the Redevelopment Agency. These funds are called “tax increments.” Usually, the flow of tax increment revenues to the Agency will not be sufficient in itself to finance the full scope of redevelopment activities and development projects. Therefore, agencies issue bonds. These bonds are not a debt of the City or County and are repaid solely from tax increment revenues. Tax increments can be used only in the same project which generates them, except for residential projects which benefit low- and moderate- income households.
The state law makes available to redevelopment agencies a method of obtaining funds called “tax increment financing.” On the date the city council approves a redevelopment plan, the property within the boundaries of the plan has a certain total property tax value. If this total assessed valuation increases, most of the taxes that are derived from the increase go to the redevelopment agency. These funds are called “tax increments.” Usually, the flow of tax increment revenues to the agency will not be sufficient in itself to finance the full scope of redevelopment activities and development projects. Therefore, agencies issue bonds. These bonds are not a debt of the city or county and are repaid solely from tax increment revenue. Tax increments can be used only in the same project which generates them, except for residential projects which benefit low- and moderate- income households.
