Baltimore officials outlined plans for the city's noncontiguous tax‑increment financing (TIF) program and reviewed legal thresholds used to declare properties vacant during an oversight hearing of the Housing and Economic Development Committee.

Alice Kennedy, housing commissioner, and the department's development staff described a multi‑agency effort to use a mix of city TIF funds, state commitments and philanthropic and private capital to rehabilitate vacant properties across targeted neighborhoods. Director Moxton (DHCD) said the TIF "makes up $150 million of the city's $300 million commitment" and that the state has pledged roughly $900 million over 15 years; the city's initial ordinance authorizes an initial sale of up to $65 million in TIF bonds. The department opened a competitive application portal on Sept. 19 and set an Oct. 3 deadline for submissions; officials said funds could be available in early 2026 pending bond market conditions.

Officials described IRS and underwriter constraints that shape how tax‑exempt TIF bonds may be structured: the department noted that tax‑exempt bond rules expect 85% of net proceeds to be spent within three years and at least 5% of net proceeds to be incurred within six months of issuance. DHCD also told the committee all TIF grants will be reimbursements for construction costs, not upfront loans, and that grantees can submit requests for reimbursement during construction; DHCD said it typically models an average incentive of roughly $50,000 per property but has no fixed per‑property cap because award sizes depend on appraisal gaps and the targeted affordability level.

On vacant building notices (VBNs), Deputy Hessler explained the department's legal standard in plain terms: "In order for a property to get a vacant building notice, it must be unoccupied and then unsafe or unfit in some way." Hessler said inspectors look for casual entry, boarded openings, roof or structural damage visible from the curb, or repeated unremediated code violations; a property can also be treated as a nuisance where it has two or more unabated code violations beyond their appeal windows or six property‑maintenance citations in a 12‑month period.

Committee members pressed for clarity on how the TIF will reach historically disinvested neighborhoods, how smaller and minority developers will access technical assistance and financing, and how DHCD will monitor use‑and‑occupancy permits and reimbursements. DHCD said it has been conducting outreach to smaller emerging developers and is coordinating with CDFIs and other partners on technical assistance; the department also said grantees must obtain a use‑and‑occupancy permit within 12 months of executing a grant agreement and that some retainage of funds is held until that milestone.

Key near‑term milestones disclosed in the hearing:
- Sept. 19: application portal opened;
- Oct. 3, 5 p.m.: application deadline for the initial tranche;
- Sept. 25: report required by ordinance submitted to council; and
- early 2026: anticipated availability of funds, contingent on bond sale and market conditions (officials said the department expects underwriting and Board of Estimates approvals prior to market sale; bond pricing and sizing will determine final award capacity).

Ending: The committee asked DHCD and finance to return with additional material for public review once underwriting and market sizing are finalized; the department said it will provide regular reporting and pursue technical assistance partnerships for smaller developers.