Negotiators dispute TIF caps, debt term in S.127 housing conference

House and Senate negotiators meeting on S.127, an omnibus housing measure, traded detailed counteroffers on tax-increment financing rules and review timing, leaving no final decision on several key provisions.

Negotiators said they would not accept the other side’s proposal and offered three counterpoints: keep the but‑for exemption limited to “affordable” units rather than extending it to moderate‑income units; maintain a $40,000,000 cap on TIF with an additional $5,000,000 allowance while removing a sunset provision; and set increment‑retention percentages at 70 and 85 rather than the other side’s 75 and 85. They also proposed shortening the period used to assess and adjust increment retention to eight years instead of 10.

The disagreement centers on how broadly projects would qualify for TIF treatment and how quickly municipalities and developers would need…