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City finance director lays out $3 billion plan to eradicate vacants; TIFF bonds already drawing investor demand
Summary
The finance director described a multi-pronged financing strategy including a citywide vacants TIFF, IDA bonds, state BVRI funds and philanthropy to reach a $3 billion target; the first $28.8 million TIFF bond sold with strong investor interest.
Baltimore's finance director told the council the city is pursuing a multi-part financing plan to fund large-scale vacant-property remediation and redevelopment over the next 15 years.
"We are undertaking a $3 billion strategy to eradicate vacants in the city," Finance Director Michael Boxton said, outlining a stack of tools: at least $150 million from an affordable-housing tax-increment financing (TIFF) district, an initial $150 million target through the Industrial Development Authority (IDA), recurring state BVRI funding and philanthropic support. He said a one-percentage-point local sales-tax increment would generate significant capital and could close the gap if other sources fall short.
How the TIFF works: Boxton described a novel, citywide, noncontiguous TIFF district that counts taxes generated on roughly 8,500 vacant parcels and uses the uplift from rehabilitated homes to back tranches of bonds. The city authorized a $65 million cap for TIFF issues; the administration issued a Series 2025 TIFF of about $28.8 million and met strong investor demand (about $389 million in subscription), he said, producing favorable borrowing terms and interest close to 5%.
Boxton said the first TIFF bond proceeds are being used to close appraisal gaps on small rehab projects and to support infrastructure where needed. He emphasized a tranche-by-tranche approach: houses fixed with tranche one generate revenue that can support tranche two and so on.
Council members pressed staff on disbursement timing and eligibility. Vice Chair Odette Ramos and others sought a clear timeline from award to money-in-hand for competitive awards and for "big six" developer partners; staff said smaller flows have started and larger award disbursements are expected within three to four months as projects complete pre-award steps. Members also pressed for affordability covenants and longer affordability periods than a single year; staff agreed to return with precise terms and timelines.
Boxton and council members discussed the IDA, which has been reauthorized and is being stood up to issue bonds; staff said details are being finalized and the IDA will be a near-term priority to expand bonding capacity beyond the initial TIFF cap.
The committee did not take a vote. Members requested a follow-up briefing with TIFF project lists, money-flow timelines from award to disbursement, and precise affordability and reporting requirements attached to TIFF-funded projects.
