SITE TAX INCREMENT CAPTURE PROGRAM
: Create a source of funding for
the Infill Housing Initiative through the capture of the "tax increment"
generated by the development of new houses on infill parcels.
: Miami-Dade County has a vast inventory of abandoned lots in hard
to develop neighborhoods. The parcels were acquired mostly as a result of prior
tax delinquencies. The Infill Housing Initiative provides these parcels to developers
for the construction and sale of new homes. It is proposed that the County create
a mechanism to track and calculate the tax revenue generated by each of these parcels
as a result of the new construction over a period of seven year. Inevitably, as
houses are constructed and sold the tax revenues generated by each parcel increases
(the "increment"). The proposed mechanism would track and document the
increment generated by each parcel. The total increment for all parcels would be
calculated and aggregated. The County would then, on an annual basis, appropriate
funds out of its general revenue for the Infill Housing Initiative in an amount
equal to the aggregate increment for that year.
: The vast inventory of vacant inner city parcels owned by the County
generate no tax revenue. Such parcels, in fact, are a revenue drain due to the maintenance
costs. As the Initiative makes these parcels available to developers, and as new
homes are constructed and occupied substantial new tax revenues are generated for
the County and maintenance costs no longer have to be paid. Despite its positive
contribution to the County's revenue the Infill Housing Initiative receives no specific
funding (other than MDHA's general operating budget). The irony is that these new
tax revenues would never have been generated had it not been for the Initiative
yet the Initiative is hampered by a lack of funding. If new funding were available
the activities of the Infill Housing Initiative could be expanded. One possible
new activity would be for MDHA to totally clean up unresolved title issues prior
to conveying lots to developers. Title companies typically require developers to
prosecute costly "quiet title" lawsuits any time that there is a tax deed
in its chain of title (virtually all lots in the Infill Housing Initiative are acquired
by the County through tax deeds). This results in an additional expense for the
developers and a delay in production. Other new activities could include a more
aggressive land assembly strategy.
: The new mechanism is, essentially, be a database that would
track all parcels "certified" by MDHA to be included in its Infill Housing
Initiative. After a parcel had been deeded to a participating developer the tax
revenue generated by that parcel would be tracked on an annual basis over the seven
year period. The "base year" for starting the measurement would be the
year that the parcel was placed with a developer. Annually, over the seven year
period, the database would track increases in tax revenue over the amounts that
had been generated during the base year. The aggregate amount of such "tax
increment" would be calculated and an equivalent amount would be appropriated
by the County each year to pay for enhanced Infill Housing Initiative Programs.
Were it not for the activities of the Infill Housing Initiative these new tax revenues
would never have become available (the parcels would have remained abandoned inner
city lien infested lots). Though there would be similarities, the new mechanism
would not be a true "tax increment financing" CRA type district that would
require approval of by the State of Florida. Implementation would merely require
an Ordinance of the Miami Dade Board of County Commissioners.