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Committee discusses using TID funds for gap financing, suggests RFP or application process
Summary
Middleton planning staff and committee members discussed how Tax Increment District (TID) funds could be used for developer gap financing and recommended creating an RFP or grant/loan application modeled on Madison to define eligibility and selection criteria.
Committee members pressed planning staff for clarity on how Tax Increment District (TID) funds might be used to provide gap financing to developers for affordable housing projects and what procedural safeguards would be required.
A member asked whether the plan should include logistics for dispensing TID-derived gap financing, or focus primarily on priorities. Staff responded that while the funding originates with the TID, later use of those funds would not necessarily carry the same TID eligibility constraints and that the city should develop an application process or RFP to define eligibility and selection criteria.
"Something similar to that or even just, you know, some kind of, like, grant application process or, you know, loan application process," a planning staff member said when describing options for administering funds, adding that a rolling or RFP-based application could be developed after the plan is fleshed out.
Members emphasized that gap financing should not be available to every developer and suggested preference for developers with documented experience in affordable housing. Staff recommended using established models (Madison was cited) when drafting the selection process to ensure transparency and measurable eligibility.
No formal motion or vote occurred; the group agreed this procedural design should be included in the strategy and finance draft for future committee review.
