City of Plymouth Intends to Extend TID #4 for Affordable Housing Initiative
The Plymouth Common Council adopted resolution number 16 of 2019 which established the legislative intent to extend the life of Tax Incremental Finance District #4 for one additional year. The tax increment finance law authorizes the extension of a TIF district for one additional year to promote affordable housing. The affordable housing extension was added to TIF law in 2009. A municipal resolution is required to be adopted prior to TIF district closure along with documentation that all project costs have been or will be paid off.
The Department of Revenue (DOR) is required to authorize the allocation of tax increment for one additional year upon receiving a copy of the municipal resolution. A city must use at least 75% of the tax increment to benefit affordable housing within the municipality and up to 25% on housing stock renewal programs. Affordable housing is defined as housing costing no more than 30% of a household’s gross monthly income.
The planned TIF extension will allow the City of Plymouth to receive tax increment for one additional year in 2026. The City intends to establish a $2.2 million housing revolving loan fund program similar to the existing business revolving loan fund program. The Common Council will adopt a program manual prior to implementation of the program in 2026. The housing revolving loan fund program will assist homeowners with home repair and improvement projects as well as private water and sewer lateral replacements. The long-term initiative will be key to supporting revitalization of older neighborhoods and housing stock within the City of Plymouth.