As many know, Detroit Lewis isn’t a fan of TIF’s, but I am not exactly opposed to ALL TIF’s. A TIF to build a luxury hotel or condos just doesn’t make sense to me, but to clean up neighborhoods and offer affordable housing, now that makes sense. It seems the SPECIALS in town have got a corner on city hall and totally backwards when it comes to TIFs. My new favorite reporter Atyeo at the AL did a fine story of how the city is helping out the ‘little guy’ for cleaning up affordable housing;
He learned about the city’s rehab program through a mailer. Property owners can loan up to $25,000 over five years with 3 percent interest. The first six months of the loan are interest-free, and no payments are required.
This is a wonderful program and similar to a program I took advantage of after purchasing my home, community development. I believe my interest rate was either 2 or 3% to fix my windows and rain gutters. While the program has it’s merits I have often wondered if TIF’s would be a better way to clean up neighborhoods and affordable housing. NOW don’t quote me on this, but I kind of remember Darrin Smith mentioning there would have to be a change in State Law to make TIF’s available to private property owners. But what makes an individual who owns several rental properties different then a large scale developer? If this person is willing to take a risk to fix up existing properties to make them better why not offer them a property tax break (TIF) and pass that savings on to the renter?
TIF’s are good, if used properly, and I believe this would be a great way of using them, but hey we don’t need any more affordable housing, just more condos and luxury hotels 🙁