Tax increment financing approved for Betsy Ross House in South Portland
Municipal attorney, Shana Cook Mueller provides insight into the TIF district proposal for a Low Income Housing Tax Credit project proposed by the South Portland Housing Development Corporation in a recent article from the Portland Press Herald.
According to the memo that was sent out to the council by Shana Cook Mueller of the law office of Bernstein Shur, The TIF district proposal includes a 20-year term of years with a 15-year credit enhancement agreement.
“The TIF district proposal includes a capture of 100 percent of increased assessed value,” said Mueller in the memo. “Seventy-five percent of the TIF revenues generated on the captured assessed value would be obligated to be paid to the developer over time through a credit enhancement agreement (CEA). Twenty-five percent of the TIF revenues generated on the captured assessed value would be available to the city to be used for permanent housing development revolving loan funds or investment funds. With a projected increased assessed value of $5,500,000, the project is anticipated to generate a total of $80,850 in annual TIF revenue during the term of the CEA, $60,638 of which would be paid to the developer and $20,213 of which would be available to the city for housing development revolving loan funds or investment funds.”
For the full article, click HERE.