Why are special assessments good for Manhattan and its citizens?
In many states and cities, subdivision improvements are not financed by special assessments. Instead a developer or property owner is required to obtain private financing at conventional interest rates. The cost of the improvement and financing is added to the price of the lots and homes sold by the developer. Because the City of Manhattan issues special assessment general obligation bonds to finance subdivision infrastructure improvements, which are exempt from Federal and State income taxes, developers and homeowners are able to secure lower interest rates on the specials they do pay. Additional advantages are that public financing of infrastructure improvements reduces the cost of housing in our community, helps promote growth in the local tax base and also helps to stimulate the local economy.
In many states and cities, subdivision improvements are not financed by special assessments. Instead a developer or property owner is required to obtain private financing at conventional interest rates. The cost of the improvement and financing is added to the price of the lots and homes sold by the developer. Because the City of Manhattan issues special assessment general obligation bonds to finance subdivision infrastructure improvements, which are exempt from Federal and State income taxes, developers and homeowners are able to secure lower interest rates on the specials they do pay. Additional advantages are that public financing of infrastructure improvements reduces the cost of housing in our community, helps promote growth in the local tax base and also helps to stimulate the local economy. All these benefits are achieved with no monetary loss to the property owner because a special assessment project generally increases the value of the property by an amount at least equal to t
