Law firm briefs Baltimore Village on TIFs and NCAs as tools for development

The Baltimore Village council heard a detailed presentation on tax-increment financing (TIF) and new community authorities (NCA) from Andrew of the law firm Bricker Gray & Wyatt, who explained how the two tools can be used to attract development and finance public infrastructure.

Andrew told council that a parcel or incentive-district TIF redirects the property-tax increment above a base year value into a TIF fund that can reimburse public infrastructure costs or secure bonds. He said incentive-district TIFs can include residential housing but must meet statutory tests — such as demonstrating economic-distress characteristics and complying with acreage and value caps — and that school districts and counties can require compensation or consent for longer or larger abatements.

"It allows you to essentially put [incremental tax] into a separate fund called a TIF fund," Andrew said, summarizing the mechanics and noting the need for notice to school districts and public hearings.

Andrew also described new community authorities — separate political subdivisions that can levy community-development charges (resembling a millage or other property or sales charges) on consenting property owners to fund community facilities and infrastructure. He said participation is typically voluntary for property owners inside an NCA and that developers often consent to charges as part of a package of incentives.

Council members asked whether TIFs affect existing homeowners; Andrew answered that only the increment (the increase in value) is affected and the base tax revenue remains in place. Members also discussed examples where NCAs have been used in neighboring communities, and voiced practical concerns about how charges, disclosures and the long-term governance of NCAs work in practice.

Andrew's slides and follow-up Q&A were requested for the record; he said he would send the material to Village Administrator Matt Nheiser for distribution.