Monetizing TIF

The podcast Monetizing Tax Incremental Financing for Municipalities and Developers not only explains how TIF can be used as a tool to fund and encourage redevelopment in cities but also how it can help with unexpected costs not originally identified in the development agreement the city can use TIFF as a tool to reimburse back the developer some of those additional costs.

What's New

What untamed equity is doing is to come in and monetize those future increment cash flows that we know are coming in as a reimbursement back to the developer. And generally, those are in the form of the reimbursement of property taxes that are paid by the developer. And then we look at the net present value cash flow stream and offer a lump sum loan amount based on a marginal of that net present value cash flow stream.

What Monetizing TIF Loans is really doing is adding that additional value to those payments by offering those payments to be reimbursed to the developer up front so we can fund that gap equity. It turns out to be gap equity that comes into the project because at the end of the day, we all want to get that project finished. But there are ways to obviously fund that upfront that we provide rather than having the city do it.

Many Thanks to: Emily Blaylock, President of Untamed Equity