Why is the City offering property tax abatement?
• 5)n both the City’s Housing Preservation Plan and its Strategic Investment Plan, the community identified the need to develop new housing to attract new market niche buyers, stimulate reinvestment in neighborhoods, and to spark catalytic change. Property tax abatement, like infrastructure enhancement, is a key way in which a city can stimulate private reinvestment in a neighborhood. • One of the main barriers to the creation of new housing in a fully built out city with a strong housing market, is the high cost of redevelopment. This typically creates a financing gap that makes these projects unprofitable to the private investor. • Tax abatement provides an alternative to using cash on hand or borrowing funds for a project.
