Baltimore's mayor, Brandon M. Scott, in a move aimed squarely at addressing the long-standing issue of vacant housing, has brought forward legislation proposing a tax increment financing (TIF) initiative. The goal is to transform vacant houses into affordable homes throughout the city. According to the Mayor's office, City Council President Nick Mosby introduced the legislation, which included two bills, one to establish the TIF district and another to authorize the issuance of TIF bonds.
The mayor's strategy, which was first announced last December and developed in collaboration with community and business partnerships like Baltimoreans United in Leadership Development (BUILD) and the Greater Baltimore Committee (GBC), is part of an ambitious $3 billion plan to end the scourge of vacant housing once-and-for-all. In crafting the plan, Mayor Scott has begun to employ financing strategies historically used in Baltimore's thriving developments, this time redirecting their focus toward neighborhoods that have long suffered from neglect and underinvestment. As reported by the Mayor's office, this innovative approach is seen by Mayor Scott as a "watershed moment" in the challenge to eradicate vacant houses in the city.
The legislative package is composed of two specific proposals: Bill 24-0594, which deals with the issuance of bonds up to $65,000,000 to fund rehabilitation and affordable housing developments, and Bill 24-0595, which delineates the properties comprising the new "City-Wide Affordable Housing Development District." The plan, with a 15-year horizon, looks to max out at $150,000,000 in bonds. The latter bill also establishes the "City-Wide Affordable Housing Development District Tax Increment Fund," earmarking property tax revenues from identified properties in the development district for reinvestment, as detailed by the Mayor's office press release.
While hearing dates have yet to be set, the council's consideration of the package signals a proactive stance in Baltimore's ongoing efforts to combat affordable housing shortages.
