Overview
On December 3, 2024, Mayor Brandon Scott signed legislation to establish the Citywide Affordable Housing TIF district, the first non-contiguous TIF district not only in Baltimore but throughout the United States. As part of this legislation, the first $65 million in TIF bonds were authorized of a planned $150 million expected over the life of the project.
How It Works
As a development district that is non-contiguous and areas are not connected, the Citywide Affordable Housing TIF district covers nearly 4000 properties in neighborhoods across Baltimore. Neighborhoods that could benefit from TIF funding include:
- Broadway East
- Harlem Park
- Druid Heights
- Park Heights
- Upton
- East Baltimore Midway
- Coldstream Homestead Montebello
The Department of Finance expects funding from the first tranche of TIF bonds to begin to be deployed in the second half of 2025. Funding from TIF bonds will be used to:
- Provide homeowner grants to allow more residents to qualify for newly rehabbed homes
- Deliver public infrastructure that includes sidewalks, parks, and alleys
- Address home appraisal gaps in a way that allows for projects to move forward and affordable homes for Baltimore residents to be delivered
TIF Bond Repayment
The success of TIF bonds depends on the City's ability to repay the associated bonds. Like other TIF bonds, the Department of Finance expects to repay the Affordable Housing TIF bonds from the increases in property tax assessments and related increases in property tax revenues. Please see the example below.
The City of Baltimore Rebuilds 100 Vacant Houses
| Year 1 | Year 5 |
Average Property Assessment Value $50,000 | Average Property Assessment Value $250,000 |
Assessment Rate $2.248 per $100 of property value
| Assessment Rate $2.248 per $100 of property value |
Average Estimated Annual Property Taxes Due $1,124 | Average Estimated Annual Property Taxes Due $5,620 |
Total Annual Taxes Due $124,000 | Total Annual Taxes Due $562,000 |
Based on the example above, an estimated $438,000 in annual increased tax payments would go toward Affordable Housing TIF bond repayment.
*$2.248 per $100 of assessed value is the property tax rate for rented homes. The effective assessment rate for owner-occupied homes is $2.048 per $100 of assessed value.