How are Community Redevelopment Agencies funded?
Video Transcript
Series are funded through tax increment revenue funding. It used to be called TIF funding and basically what it is is it's the difference between the current value of a property and the future value of a property so what happens is there will be a year that is designated as the frozen year and you'll look at the property value at that time and then any increases in there, the taxable value on that is what funds the CRA. For example, if you have a property that's worth $100,000 at the frozen year and then that property value improves to $150,000, that difference of $50,000 the taxes that are generated off that is what funds the CRA. It goes into a trust fund and that's what funds the CRA.