Provide technical assistance with the organization and development of a Community Redevelopment Authority (CRA) or Community Development Agency (CDA) to promote rehabilitation of blight and substandard areas through Tax Increment Financing (TIF).
TIF is a redevelopment tool that Nebraska cities and villages are able to utilize for public improvements when grant funding sources are limited or unavailable.
By establishing a CRA or CDA, communities are able to create designate blight and substandard areas. A first class city can designate up to 35% of the city as blighted, a city of the second class can designate an area up to 50% of the city as blighted, and a village is eligible to designate up to 100% of the village as blighted.
Once a blight and substandard area has been designated, Redevelopment projects can begin. The Redevelopment project must be able to uphold the “if not for” clause, simply
meaning the development would not be occur without TIF assistance. TIF projects can capture property taxes generated from the increased property valuation for a period of up to 15 years.
Redevelopment projects give communities the opportunity to provide public improvements on private development projects to remedy existing blight and substandard conditions.