BALTIMORE, MD (Monday, September 30, 2024) - Today, Mayor Brandon M. Sott announced that legislation creating a first-of-its-kind affordable housing tax increment financing (TIF) legislation targeting vacant housing in Baltimore has been introduced to the Baltimore City Council. The legislation was introduced on behalf of the administration by City Council President Nick Mosby, who assisted in crafting the final version of the legislation.
The affordable housing TIF, which includes two pieces of legislation establishing the TIF district and authorizing the issuance of TIF bonds respectively, is a cornerstone of Mayor Scott's $3 billion vision to end vacant housing in Baltimore once-and-for-all. That plan was crafted and announced in December 2023 in partnership with community partners from the faith and advocacy community in(Baltimoreans United in Leadership Development (BUILD) and the business community represented by the Greater Baltimore Committee (GBC).
"The introduction, and hopefully the future passage, of this affordable housing TIF is a watershed moment in our effort to eliminate the issue of vacants in Baltimore once and for all," said Mayor Brandon M. Scott. "This is an innovative approach which takes proven financing strategies that have been utilized to drive some of the largest and most successful developments in Baltimore and applies it to historically disinvested-in neighborhoods in a new way. It's an encapsulation of the heart of our vacants strategy and our overall effort to overcome the intentional disinvestment that so many of our neighborhoods have faced. I am incredibly excited by this progress and I want to thank all our partners who have joined us in this work, including Council President Mosby, BUILD, GBC, and our partners at the state level in Governor Moore and his administration."
"This bill offers a creative solution to address a recurring and seemingly intractable problem our city has faced for decades, vacant homes," said Council President Nick Mosby. "This legislation helps reverse the tide of failed decisions and policies of the past. I look forward to working with the administration to pass this bill out of the council."
The legislative package includes two bills: 24-0594 City-Wide Affordable Housing Bond Issuance and 24-0595 City-Wide Affordable Housing Development District. The first of these bills will authorize the issuance of bonds up to $65,000,000 to finance the costs associated with the rehabilitation of vacant units and the development of affordable housing, eligible public infrastructure improvements, and other necessary improvements within the development district. The total overall goal for the City is to issue a maximum of $150,000,000.00 in bonds over a 15 year period. 24-0594 also defines the details pertaining to the repayment of the bonds issued and the parameters for grants related to the bond proceeds. 24-0595 defines the properties that are to be designated as the "City-Wide Affordable Housing Development District" and creates the "City-Wide Affordable Housing Development District Tax Increment Fund." The Fund will include property tax revenue from the properties identified in the Development District.
Both bills have been assigned to the Committee of the Whole, which means the bills will be considered by the entire City Council. Hearing dates have not yet been announced.
