Example of TID & Housing

Last fall, I mentioned a new law relating to Tax Incremental Districts and Tax Incremental Financing.  To summarize it, the law allows municipalities to pretend that their newly closed Tax Incremental District is still active and direct up to a year of that revenue toward housing, with at least 75% going to affordable housing and up to 25% used to improve the housing stock.

Thanks to this article, I have an example of how this could've worked in Milwaukee.

The Common Council's Zoning, Neighborhoods and Development Committee on Tuesday unanimously approved a resolution dissolving the district, along with two other tax districts created for developments that didn't occur.


As a result, the $25 million in improvements at City Hall Square, 104 E. Mason St., will be generating around $640,000 annually for local governments, according to a Department of City Development report.

If the City of Milwaukee had taken advantage of this law with the $640,000 in revenue, they could've directed at least $480,000  toward the City of Milwaukee Housing Trust Fund, giving it a much-needed boost, and up to $160,000 toward lead prevention programs targeting lead paint.

Any community with a closing TID can do the same, directing the money toward some kind of housing programs (such as rehab, homeowner loans, development grants, etc.).