AffordableHousingTaxIncrementFinancing ( ATIFF ) isavariationofTaxIncrementFinancing ( TIF ) tailored tosupportaffordablehousing developmentorpreservation . MunicipalTax IncrementFinancing ( TIF ) isaflexiblefinancetoolusedbymunicipalities , plantations , and unorganizedteritoriestoleveragenew propertytaxesgeneratedbyaspecificprojectorprojects withinadefinedgeographicdistrict . Anyportionofthenew taxesmaybeusedtofinancepublic orprivateprojectsforadefinedstatutorilyalowableperiodoftime .
TheTIFProgram islocalydriven : Themunicipalityorplantationdefinesthedistrictsize , determinestheamountofnew taxestobecaptured , identifiesalowablepublicandprivate projectsalongwiththeterm , withthewholeproposalrequiringlocalpoliticalapproval . LiketraditionalTIFs , ATIFFscapturefuturepropertytaxrevenueincreasesfrom development projectsandredirectthem tofinancepublicinfrastructureorcommunitybenefits . However , ATIFFsprioritizeaddressinghousingaffordabilitybyalocatingTIFfundstoaffordablehousing initiatives .
Thisarangementdedicatesincreased property tax revenue to fund affordable housing programs , subsidies , orincentives , supportingvariousaspectsofaffordablehousingprojects such asland acquisition , construction , orrehabilitation . By leveraging ATIFF financing , municipalitiesencourageprivateinvestmentinaffordablehousing , expandinghousingoptions inunderservedcommunities , especialyinhigh-costhousingmarkets .
OneexampleofacommunitythathasusedAffordableHousingTaxIncrementFinancing ( ATIFF ) isthecityofPortland , Oregon . Portlandhasfacedsignificantchalengeswithhousing affordabilityduetorapidpopulationgrowthandrisinghousingcosts . Inresponse , thecityhas implementedvariousstrategiestoincreasethesupplyofaffordablehousing , includingtheuseof ATIFFstosupportaffordablehousingdevelopmentprojectsliketheGrantParkVilageproject .
DevelopedbyGuardianRealEstateServicesandPortlandCommunityReinvestmentInitiatives ,
DevelopedbyGuardianRealEstateServicesandPortlandCommunityReinvestmentInitiatives , Inc ., thismixed-usedevelopmentincludesmarket-rateandaffordablehousingunits . Theproject receivedfinancialsupportfrom Portland ' sHousingBureauthroughtheATIFFprogram , which helpedmaketheaffordablehousingcomponentfinancialyfeasible .