2005 House Bill 4181

Authorize “neighborhood improvement” authorities

Introduced in the House

Feb. 3, 2005

Introduced by Rep. Tupac Hunter (D-9)

To authorize the creation by local governments of “neighborhood improvement” authorities. These would be granted broad powers to create government programs intended to eliminate the causes of neighborhood deterioration, promote residential growth, and promote economic growth. The authorities would have the power to borrow, to receive revenue from property tax special assessments levied by the local government, and to accept the transfer of property condemned for the purpose by the local government under its power of eminent domain. They could also create tax increment financing plans (TIF or TIFA). This allows an authority to capture the increment of increased local property tax revenue that results from the economic growth which is supposed to be generated by the provision of new public facilities. Money is borrowed to provide these new facilities, and the “captured” tax revenue is used to pay off the debt.

Referred to the Committee on Commerce

April 18, 2006

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.