Affordable Housing Tax Increment Financing Program

The Affordable Housing Tax Increment Financing (AHTIF) Program offers municipalities a flexible financing tool to assist affordable housing projects and support related infrastructure and facilities by designating a specific area of the municipality as an affordable housing development district and adopting an affordable housing development program for the district. AHTIF enables communities to use the incremental tax revenues from the affordable housing district to help make the housing affordable and to pay for related costs.

Communities using AHTIF also avoid the decreases in state revenue sharing and state education subsidy and increases in county taxes that otherwise would occur with increased property values from the AHTIF district.

Eligible uses of incremental tax revenues from a district include:

• Costs inside the AHTIF district: Capital and operating costs of affordable housing and public infrastructure improvements, related soft costs, support services for residents of the affordable housing, and costs of recreational and child care facilities.
• Costs outside the AHTIF district:
Costs outside the AHTIF district can be funded with tax increment revenues from the district only if those costs are directly related to or made necessary by the establishment or operation of the district, and then only to a proportional extent. Examples include infrastructure and public safety improvements, costs to mitigate adverse impacts (including to local schools), and costs to establish a permanent housing development revolving loan or investment fund.