The South Bend Common Council on Aug. 25 approved a resolution expanding the River West tax-increment finance district and creating a residential TIF set‑aside to capture tax revenue from new housing in the Lincoln and Kennedy Park area.

The measure—passed 9–0—adds parcels to the River West TIF and designates a subset as a residential housing development area. Joseph Molnar, assistant director of Growth and Opportunity, told the council the residential TIF would capture incremental tax revenue from new single‑family construction beginning Jan. 1, 2025, and dedicate that revenue to local infrastructure and development projects in the district.

Molnar said the tool differs from commercial TIFs because it captures increment generated by new single‑family homes (not increases to existing home values). He described the district as having one of the city’s highest concentrations of vacant lots and said the city has signed partnerships with nonprofit developers already building homes there, including Intend Indiana and South Bend Mutual Homes. Intend Indiana has committed to build 92 houses over the next five years, Molnar said, and the residential TIF will allow tax revenue from those new homes to be reinvested in the same neighborhood.

The council heard that the residential TIF can fund sidewalks, streets, utility upgrades, parks, and development assistance. Molnar said the city set the base assessment date at Jan. 1, 2025, so tax increment from houses currently under construction would be eligible. He said the residential TIF would run for 20 years from that base date.

Council members asked how the city will communicate the change to residents and whether the city has used a residential TIF before. Molnar said state law requires mailed notice of hearings to affected property owners; the city will also send a plain‑language Q&A and provide staff contact information. He said South Bend previously used a form of residential capture near Eddy Street 15–17 years ago but that this would be the city’s first use of the statute in its current form.

Council President Lee then called for a vote; the resolution passed unanimously. Molnar said if the council’s action is confirmed by the Redevelopment Commission and the required public hearings proceed as scheduled, the TIF would be finalized later this fall.