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Tax Increment FinancingGood Jobs First  Form

Tax Increment FinancingGood Jobs First Form

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welcome back to Fridays with George George you're up what's your real estate term for this Friday tax increment financing okay good yep so tax increment financing also known as tiffs are really a methodology for local municipalities to push forward the Redevelopment and development of certain areas so a taxing Authority will then go into a neighborhood and declare it a tiff District how this works is the city then invests Co alongside developers and redevelopers in bringing up the building so they invest in the buildings maybe on the rehab side and the idea is they'll put in 20 25% of the equity so that's a benefit for the developers to come in there and have assistance on the financing portion of it how it's paid back is through the increment of the taxing so the city still keeps the base rent but when the value goes up the incremental differential goes to pay off the notes that they supply to the developers so it allows the city to revitalize a

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