Where does the redevelopment agency get money?
Claremont’s Redevelopment Agency projects are funded in a number of ways, including loans, grants, the issuance of tax allocation bonds, and tax increment financing. Tax increment financing is a funding method specifically established for redevelopment agencies by state law. It works like this. On the date that a City Council approves a Redevelopment Plan, the amount of property tax being generated by the property within the boundaries of the plan is noted. As the total assessed valuation of the properties within the project area increases, usually as a result of development activity, so does the amount of property tax generated by those properties. The difference in the two levels of property tax is known as the tax increment. Most of this tax increment goes to the Redevelopment Agency. The Agency has no power to set tax rates or impose new property taxes.Usually, the amount of tax increment revenues going to the Agency will not be enough to finance all the redevelopment activities an
