A New Way to Rebuild Baltimore's Neighborhoods

Introduction

Since taking office in December 2020, Mayor Scott's administration has reduced the City’s vacant property inventory by over 20% (track continued progress).  Resources such as the American Rescue Plan Act (ARPA) funds contributed to this reduction but were not enough to solve the decades of redlining and disinvestment that created the City’s vacancy problem.

To keep up the momentum to reduce vacant buildings in Baltimore city, Mayor Scott signed the City’s first Affordable Housing Tax Increment Funding (TIF) legislation into law In December 2024, providing up to $150 million over time to support neighborhood-based, block level redevelopment throughout the City’s historically disinvested communities. Developers, community-based organizations and legacy residents will now have access to large-scale capital to build wealth through homeownership, scale up business growth and development, and lead neighborhood-based change.  

The City-Wide Affordable Housing Tax Increment Funding (TIF) is the one of the first non-contiguous Tax Increment Funding (TIF) Districts in the country.  It is also one of the first to target funds to build the local economy by directing funds to small and emerging developers, community development partners, and individuals combatting vacants.  

Available Public Information Presentations

Notice of Funding Opportunity

Info Session Slide Presentation

Info Session Recording - 9/15/25

Info Session Recording - 9/16/25

Budget Info Session - 02/18/26

What is a TIF?

The Tax Increment Financing (TIF) legislation authorizes the City of Baltimore to sell bonds and borrow money for development projects by designating a specific area where the bonds will help fund new development (in the Tax Increment Funding District).  Tax Increment Funding are intended to provide additional City revenue by increasing the property tax base and attracting new residents.  By authorizing the City to sell bonds, that revenue pays for new development, typically public infrastructure, parks and open spaces.

What is the Affordable Housing TIF?

In 2023, Mayor Scott launched the Vacancy Reduction Initiative (VRI), a bold 15-year plan to eliminate Baltimore’s concentrations of vacant properties by identifying uses for vacant property that result in a whole block outcome and creating partnerships to raise more than $3 billion.  The Citywide Affordable Housing Tax Increment Funding (TIF) is the centerpiece of the City’s financial commitment to the VRI by focusing on supporting new housing construction that will increase the City’s homeownership rates and preserving communities by redeveloping vacant buildings.  Learn more about the Vacancy Reduction Initiative by visiting ReframeBaltimore.com. 

General Overview

The Affordable Housing Tax Increment Funding (TIF)  Bond proceeds can only be used to:

  • help redevelop vacant buildings for residential use, or
  • build public infrastructure for City-sponsored new construction homeownership projects

Tax Increment Funding (TIF) funds can only be spent on properties included in the City-Wide Affordable Housing Tax Increment Funding (TIF) District. The Tax Increment Funding ( TIF) funds will be provided as grants, with no requirement for repayment.  This helps reduce the appraisal gap, which has stalled development from taking place at scale where it is most needed, and helps to ensure and preserve affordable housing. 

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Frequently Asked Questions

How is the Affordable Housing Tax Increment Funding (TIF) different from the City’s "Other" Tax Increment Funding -TIF’s?
Traditional Tax Increment Funding (TIF)Affordable Housing  Tax Increment Funding (TIF)
Defined project and development area – boundaries are contiguousCitywide with a focus on areas with high vacancy rates
Tax Increment Funding bonds are sold based on development that is ready to proceed: the increased property taxes from the completed development repays the Tax Increment Funding BondUses prior year assessment that includes properties have received a Use and Occupancy permit and are included in the Tax Increment Funding District
One primary developerCity sponsored with multiple users
Developers is subject to special tax to ensure sufficient tax revenuesNo special tax as City sponsored and affordable households
How were the properties in the Affordable Housing  Tax Increment Funding (TIF) District identified? 

Properties included in the Tax Increment Funding District were identified through DHCD’s ongoing whole block planning efforts where potentially using TIF funds could help 1) achieve a whole-block outcomes, 2) leverage other funding sources, 3) were identified as a community priority, or 4) are part of a DHCD-sponsored development project. 

All of the properties in the TIF District met one or more of the following criteria:

  • Eligible for Judicial In Rem Foreclosure.  Judicial In Rem Foreclosure allows the Baltimore City Department of Housing & Community Development (DHCD) to foreclose on the liens on a vacant lot or building where the value of the liens exceeds the assessed value of the property, and thereby take title to the property.  To learn more about In Rem Foreclosure, click here  In Rem Eligibility | Baltimore City Department of Housing & Community Development
  • Acquired using American Rescue Program Act (ARPA) Funds or other City funding sources.
  • City-owned vacant building.
  • Vacant property (building or lot) needed for a development project.
  • Generate income to support the sale of the first Tax Increment Funding Bond series.

DHCD met with multiple community partners to review the Tax Increment Funding District properties, including providing a list of properties for review, and deleting and adding as requested..

How can I find out if my property is in the Tax Increment Funding District and eligible to apply for Tax Increment Funding?  

The City-Wide Affordable Housing Tax Increment Funding  District includes approximately 4000 properties that have been issued a Vacant Building Notice (VBN) and could be eligible to be awarded Tax Increment Funding, funds.  To apply for Tax Increment Funding, funds, your property must be located in the Tax Increment Funding  District.

Please use this link to determine if your property is eligible to be considered for TIF Funds.  Type in the address(es).  If your property is in the Tax Increment Funding District, it will be identified with a green dot.  If the address is not identified with a green dot, it is not eligible for Tax Increment Funding, funds.  

How are property owners with eligible properties being made aware of this opportunity? 

DHCD mailed over 4000 notices to eligible property owners.  Information was sent to the listed Mail To address of each identified property owner and provided details on the program and the Notice of Funding Opportunity.  

How do I request Tax Increment Funding (TIF), funds? 

Tax Increment Funding, funds can only be requested by submitting an Application.  Please review the Notice of Funding Opportunity for application information and guidelines.  If you decide to submit an application, all applications will be submitted through an online application process. 

What is the total amount of funds available for this initial round of TIF Funds?

The amount of funds will be finalized when the Tax Increment Funding Bonds are sold, however DHCD is estimating that between $15-18 million be available through this Notice of Funding Opportunity.

How much Tax Increment Funding (TIF), funds can I ask for? 

There is no limit to the amount of Tax Increment Funding, funds you can request for a specific project.  However, Tax Increment Funding, funds can only be spent on hard construction costs – for example, roofs, foundations, framing, and roofs. 

How does this Tax Increment Funding prioritize equity and give priority to legacy and current residents? 

This Notice of Funding Opportunity places a priority on equity, legacy and current residents by:  

  • Allocating an estimated $3 million of the total potential Tax Increment Funding, funds to applications submitted by legacy residents, small, emerging and minority developers, a resident who lives in the Tax Increment Funding  District and may not be a legacy resident, a business owner, an individual who is applying for funds to renovate a family-owned home, or other similar applicants.
  • Prioritizing awards to projects that use Tax Increment Funding, funds to close an appraisal gap, or to create or preserve affordability.
  • Not requiring competitive scoring for legacy and other residents.  These applications will be reviewed to confirm they meet the Threshold Criteria outlined in the Notice of Funding Opportunity, in particular that the project can be financed and then completed within 12 months of executing a Grant Agreement with DHCD.  
Why is the time to submit an application only two weeks?  

We do recognize that two weeks is a short amount of time to prepare and submit an application.  The shortened application period is necessary to allow the City to receive all of the required financial and legal approvals we need in order to sell the bonds by the end of this calendar year.  We must sell the bonds before we can make the funds available to our applicants.  Our goal is to be able to make these funds available in early 2026.

Will there be multiple opportunities to apply for Tax Increment Funding, funds?

Yes.  There will be multiple opportunities to apply for Tax Increment Funding, funds and  the information will be released in various rounds.   

If I can only use Tax Increment Funding, funds for some of the costs, where will the remaining funds to complete redeveloping the property come from?

Applicants are responsible for identifying funds needed to complete the redevelopment of their property. 

If my property is approved for Tax Increment Funding, funds, how can I access the money? 

Tax Increment Funding, funds are provided as grants, and you will need to execute a grant agreement with the City.  The grant agreement will include the amount of Tax Increment Funding, funds awarded, a development budget, schedule and other City requirements.   

Can I live in a property that I renovate?

Yes.  You can live in the property, sell it or rent it.  Whoever lives in your property cannot earn more than 115% of the area median income, which is approximately $150,000 for a household of four. Click here to find the income limits for the Tax Increment Financing. 

Can I do my own renovations? 

Work can only be done by licensed contractors and subcontractors.  Before a grant is finalized, you will need to provide licenses and proof of insurance for your contractors and subcontractors.   

Background 

Policy Goals

The Affordable Housing Tax Increment Funding (TIF) is designed to support the following city-wide goals:

  • Equitable neighborhood development
  • Reduce the appraisal gap (difference between costs and sales price)
  • Expand resources for community development
  • Provide opportunities for small, emerging, women and minority-owned businesses
  • Sustainable and healthy communities
  • Supports violence reduction initiatives
  • Grow the City’s population
  • Increase the City’s tax base
City-Wide Affordable Housing Tax Increment Funding (TIF) Legislation

The city-wide Affordable Housing Tax Increment Funding includes two bills:

The Development District defines the properties that are designated as the "City-Wide Affordable Housing Development District."  An important feature of the Affordable Housing Tax Increment Funding is prioritizing homeownership opportunities for legacy residents.  In order to apply for TIF funds, your property must have been issued a Vacant Building Notice (VBN) and be included in the Development District.

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