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 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 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-inc
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 that 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.
