A special assessment is an additional tax on a piece of property, generally in the form of real estate taxes. This additional assessment is collected by the local taxing authority and directed to a designated fund to finance projects, improvements or programming for the assessed district.
Special assessment districts are a common development financing tool. Every state provides some form of special assessment district financing. Most states offer more than one option. These tools are known by a variety of names and can be structured in a variety of ways, but there are two predominant methods.
The first method, Business and Neighborhood Districts, is the assembly of business and neighborhood groups into a district to generate funding for projects and programs. Business and Neighborhood Districts are typically run by property owners in the district. These owners impose self-assessed taxes on themselves in order to generate funds for physical improvements or other amenities.
The second approach, Government Districts, is a directly targeted assessment program organized by the local government. Government Districts come in many shapes and sizes. These districts often provide services that are similar in scope to those provided by Business and Neighborhood Districts. However, in these cases, government entities typically direct the work of these districts.
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Special Assessments are one of the most common tools local governments use to incentivize development in a district. Interested in learning more? This section contains resources on understanding the basics of special assessment financing.
The Rise of Innovation DistrictsMembers only 
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Innovation Districts are creative urban ecosystems in which city leaders, start-ups, established firms, institutions, skilled workers, and entrepreneurs converge to capitalize upon new ideas and technological breakthroughs. Innovation districts are designed to bridge gaps between fields and make unusual and creative collaboration more likely to happen.
An Overview of Special Purpose Taxing DistrictsMembers only Login
The National Association of Home Builders published this report focusing on Special Purpose Taxing Districts, a more efficient and effective way to fund public improvements in advance of growth, while at the same time ensuring that new growth pays for the improvements.
Search the map below for Special Assessment District resources by state. This specialized search is part of
CDFA's Online Resource Database. Click on a state to see a sample of Special Assessment resources by state. Login with a CDFA Member account at the top of the page to view full results.
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This session of the Federal Financing Webinar Series will highlight the resources available at the U.S. Department of Treasury and Small Business Administration to finance economic growth in distressed communities. Featured programs include the State Small Business Credit Initiative, the CDFI Fund, New Market Tax Credits, and other small business financing programs like SBA 504 and 7a. Learning about these programs can help with projects in your community such as leveraging private lending to help finance underserved small businesses and manufacturers, creating and retaining jobs, as well as funding alternative energy solutions, supermarkets, and critical resources in distressed urban and rural communities.
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