Infrastructure Financing Districts (IFDs) are gaining momentum as a way to fund infrastructure projects, facilities, and affordable housing with tax increment financing (TIF). The ability to create an IFD has existed since 1990, but the process was cumbersome and often unnecessary with redevelopment. After dissolution, the State legislature paid more attention to IFDs as an alternative to redevelopment. Three new laws that go into effect in 2015 permit different variations with expanded powers.
IFDs are most viable for jurisdictions that receive a high share of the 1% general levy or who can partner with other taxing entities to fund mutually beneficial projects. RSG has prepared financial analyses to determine how much revenue could be generated by an IFD. If you would like to learn more about the IFD process and if it is right for your community, please contact an RSG staff member.
Posted by Suzy Kim who is an Associate at RSG.