Ways & Means reviews draft 1.1 of CHIP program; asks for reporting, clarifies TIF limits

Members of the Ways & Means Committee reviewed draft amendment 1.1 to S.127 on March 9, focusing on changes to the proposed Community Housing and Infrastructure Program (CHIP) and how tax increment financing (TIF) retention limits would operate.

John Gray, of the Office of Legislative Council, told the committee, “This is draft 1.1,” and explained the amendment combines the text of S.127 with previously discussed CHIP-specific language and the committee’s affordability definitions. Gray walked members through provisions on eligible improvements, application review, and the roles of the entity that evaluates applications and the CHIP board.

The committee centered its discussion on three issues: (1) a request that staff add a reporting and evaluation requirement to track whether public funds are being used for private infrastructure; (2) clarification of the review and approval sequence in which the evaluator reviews applications, the CHIP board reviews the evaluator’s recommendations, and the evaluator (as the TIF-approving entity) issues final TIF approvals; and (3) an explanation of the proposed TIF retention limits — a $40,000,000 total cohort cap that, under the bill’s financing assumptions and cohort timing, may produce a maximum yearly…