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Amendment proposed to clarify TIF extensions for affordable housing and transit‑oriented development
Summary
Legislators and DECD asked the Taxation Committee to adopt technical clarifications to a recent TIF extension law so that qualifying transit projects can be funded outside a TIF district and the 75% test can be met by any mix of housing and transit spending.
Representative Amy ____ (presenting) and DECD officials asked the Taxation Committee to adopt clarifying language for a bill enacted during the previous session that allows development‑district tax increment financing (TIF) to be extended 20 years at the original valuation if at least 75% of incremental revenue is used for affordable housing and/or transit‑oriented development.
The amendment responds to implementation questions that surfaced after the earlier law was enacted. The bill clarifies two points: that qualifying transit‑oriented development funded by the TIF extension may be located outside the development district (provided it is transit‑connected) and that the 75% test may be met by any combination of spending on affordable housing and transit (not either/or).
Municipal economic‑development directors testified in favor, saying the change would allow longer‑term planning and provide municipalities more certainty to use TIF revenue for housing and transportation projects that support job growth and mobility. ‘‘This gives municipalities the tools to move forward with affordable housing. It also with the extension, you know, we ask municipalities to do long term planning,’’ Jay Brenchick, Auburn’s economic development director, said.
DECD said the clarifications align statutory text with legislative intent and recommended adopting the department’s suggested language for the definition of qualifying spending. The committee asked staff and agencies for drafting coordination and indicated it would consider the department’s suggested text at work session.
Why it matters: The change matters to towns and cities using TIF as a financing tool to promote both housing and transit in designated areas and to meet climate and housing goals.
Next steps: Committee to review suggested DECD language and take up at work session.
Sources: Representative testimony; Jay Brenchick (Auburn economic development); DECD testimony.
