TID Funding for Housing

Back in June, I blogged on a new item in the Wisconsin budget legislation that would provide authority for communities to extend the life of Tax Incremental Financing Districts by an additional year for housing. I think of a TID this way: it's a loan against the future value of a district, with the loan being used to make improvements that will revitalize the district & create better tax-producing parcels.

Once a municipality decides to do this, the council has to pass a legislation authorizing this, describing how the money would be used for housing. At least 75% has to be used for affordable housing, with the remaining money used to improve the housing stock (such as lead paint removal).

According to a 2008 Public Policy Forum brief on TIDs, Waukesha County has 27 districts in 14 communities as of 2007, valued at approximately $1.5 million. An updated report (this morning!) with a list of communities and their TIDs can be found at the Department of Revenue.

Think about it. Whatever those communities currently pay out annually toward the cost of the TID could be used for housing for a year! Think of how many detoriating homes could be rehabbed with that money, how many homes Habitat for Humanity or Rebuilding Together could work on, how many homes could have lead paint safely removed!

Communities have lived without the tax increments from the increased value of the districts for years-maybe even two decades, so don't tell me they can't go one more year without that money. This is a great resource for communities clever enough to take advantage of it.