Tax increment financing (TIF) financing tools work by transferring the property tax revenues that flow from a designated project area to the city, county, and other taxing entities. Additional tax revenue in future years (the “increment”) is diverted into a separate pool, which can be used to pay for improvements directly or to pay back bonds issued against the anticipated TIF revenue.
In California, TIF has historically been used by redevelopment agencies to raise funding for infrastructure improvements, housing and other projects in redevelopment areas. However, with the dissolution of redevelopment agencies as of February 1, 2012, the traditional form of TIF financing is not available. New financing mechanisms such as Enhanced Infrastructure Financing Districts (EIFDs) and Community Revitalization Investment Areas (CRIAs) are opportunities for public agencies to create more economic development within your community. CALED has created a Technical TIF Committee comprised of expert practitioners, attorneys and consultants to assist in sharing knowledge and resources to help California communities leverage these new tools.
The California Association for Local Economic Development (CALED) and the League of California Cities (League) are pleased to provide you this complimentary copy of the 2017 Primer on California’s New Tax Increment Financing Tools (first edition). As cities across the state are exploring the potential of Enhanced Infrastructure Financing Districts (EIFDs) and Community Revitalization Investment Areas (CRIAs) to further economic development projects within their communities, our hope is that this primer will assist you in answering key questions about these tools and assist your critical work.
In 2016, CALED created a technical committee on tax increment financing comprised of expert practitioners, attorneys, consultants and League representatives to share knowledge and resources to help communities leverage these new tools. This primer is an outgrowth of the committee’s work. This first edition navigates current state laws applicable to EIFDs, CRIAs, and other available forms of tax increment financing. CALED will issue periodic updates to the primer to reflect new legislation affecting these tools and to highlight innovative uses of EIFDs and CRIAs in practice throughout California.
The League and CALED are proud partners on this project, dedicated to improving economic development practices and growing local economies across California. We hope you find this information useful.
Download the TIF guides below for a rapid-glance review of the tools:
- Frequently Asked Questions about EIFDs and CRIAs
- EIFD CRIA comparison chart
- Click here to download the TIF Booklet
If you have additional questions regarding these tools or the work of the Technical TIF Committee, please contact CALED at 916-448-8252 or any of our expert Committee Members.
Aaron Laurel, Economic Development & Housing Director, City of West Sacramento (Co-Chair)
James Hamill, Managing Director, CA Statewide Communities Development Authority (Co-Chair)
Constantine Baranoff, Shareholder, Kronick Moskovitz Tiedemann & Girard
Lynn Hutchins, Partner, Goldfarb & Lipman LLP
Debbie Kern, Senior Principal, Keyser Marston Associates, Inc.
Larry Kosmont, President, Kosmont Companies
Ellen Martin, Executive Vice President, EPS
Mike Nuby, Manager, Economic Development Services, Southern California Edison
Jim Simon, Principal, RSG, Inc.
Randy Starbuck, Consultant, A2B Consulting
Betsy Strauss, Special Counsel, League of California Cities
Rafael Yaquián, Partner, Goldfarb & Lipman LLP
Please check back for information and updates periodically.