Tax Increment Finance (TIF) Variance
When TIF is used for housing development, a percentage of the future tax increment revenues from the project must be used to provide housing assistance to low- and moderate-income families. The percentage required varies by county, and ranges from about 30 to more than 50 percent.
The Iowa Economic Development Authority (IEDA) is tasked with granting variances to the required percentage for low- and moderate-income assistance. Developers or communities seeking a variance must show that the project is not feasible with the required percentage. Requests for variance are accepted at any time.
For Cities – a tool has been developed by users to assist cities in estimating low and moderate income affordability housing. The tool is for informational purposes only and is not required to be used when determine affordability housing in your community. It is hosted on the Iowa League of Cities website and requires a username and password. The tool can be accessed via this link: www.iowaleague.org. Once on the site - click on Member Resources - click on “Economic Development:” then “Urban Renewal”. Scroll down on the “Urban Renewal” page to “LMI Affordable Housing Calculation Tool.”
To learn more: