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Conference committee debates revisions to S.127 CHIP program, TIF rules and housing provisions
Summary
Lawmakers at a May 28 conference committee meeting discussed competing amendments to S.127 that would change the proposed CHIP (infrastructure-for-housing) program, clarify tax-increment financing (TIF) eligibility and timing, and reconcile related housing provisions from H.479.
A conference committee reconciling the Senate and House versions of S.127 met May 28 to negotiate changes to a new CHIP program and related tax-increment financing (TIF) rules, along with several housing provisions that appear in a parallel bill, H.479.
The meeting focused on disagreements over how to define eligible improvements, how to measure whether a project needs state increment retention (the "but-for" test), affordability thresholds and retention percentages, program timelines and caps, and how much rulemaking to put into statute versus deferring to existing TIF guidance and agency rules.
Committee members said they want the CHIP program to remain usable for smaller municipalities and to preserve the TIF program’s flexibility. Members opposing the House draft asked to restore broader, more flexible definitions of eligible improvements to match long-standing TIF language and to avoid prescriptive statutory rulemaking that could delay projects. They also proposed extending the program timeline from 2031 to 2035 and lengthening the program term to 10 years rather than a shorter pilot period described in…
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