SB 0621 Allows Tax Increment Financing for Housing Fund
LR Number:S2433.01I Fiscal Note:2433-01
Committee:Insurance and Housing
Last Action:01/10/96 - Hearing Conducted S Insurance & Housing Committee
Effective Date:August 28, 1996
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Current Bill Summary

SB 621 - This act would a allow municipality to set aside 20% of the funds collected from tax increment financed developments to be used exclusively for affordable housing. In the alternative, the municipality may require that 10% of the housing units created under the redevelopment plan be set aside for low income families.

The tax collecting entity would calculate 20% of the increment of increased taxation attributable to the redeveloped improvement, and forward that 20% to a special fund administered by the municipality in which the redevelopment project is located. The municipality would loan or grant the funds to newly constructed or rehabilitated housing for persons below 60% of the median income with an eighteen-year use restriction to maintain affordability.