Gayblack Canadian Man

Foreign Policy Analysis
Highlights: Opportunities for Community Reinvestment

Highlights: Opportunities for Community Reinvestment

(instrumental music) – The state has been more interested in individual increments of the economy. And the general area of
infrastructure at large. They have been more interested
in elements of infrastructure that means a particular state need than they are in an infrastructure that would support
regional growth patterns. There was a good bit of money that went in to local housing trust funds because there was a
statute that was passed in the middle 70s that
required a certain set aside for redevelopment funds
to go into housing. And that fund build up. It wasn’t really clear to
the administrations, plural, until the mid 90s when
they discovered that most of that money came out of
the school finance system. By the late 90s, it was adult money. And then by the turn of the century, it was significant, significant money. The cities that had the most
robust redevelopment programs that put a significant
amount into housing, they were cities that
had a fairly low share of the property tax. And the schools had a large
share of the property tax. It’s the best of all worlds for them because they can use somebody else’s money to finance the things they want to do. What model should we use to
basically put new authority back into community governments now that the redevelopment system is gone. Out of this comes the so called enhanced infrastructure
financing districts. We convinced the administration
that they should take the current infrastructure
financing district statute, and expand it. We put a long list of authorities in there so that a given economic
development investment, or infrastructure investment, the financing could be
tailored to what it was you want it to do. What the state did was
the state reduced the rate that you all pay on your cars and instead back filled
that by moving property tax from the schools over
to cities and counties. So the amount of property
tax that’s available to increment for these activities
has grown significantly. Cities that had a big property tax base and had populations of
roughly over 150 thousand just that money rolled in big time. For cities that had a smaller population, they don’t get as much
money out of this deal as they otherwise did in the VLF. So we’ve had this odd problem in our state local relationship in how this money basically is distributed among the 485 cities. And what’s happening in a growing economy is that the amount of
investment that’s going on is growing significantly at a little higher clip
than change of ownership. When you look at these financing tools, they have to use some of the
communities own resources, where before they were able to use somebody else’s resources. (instrumental music)

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