Welcome to the course! This session will introduce CDFA, explain how to use the online software, and discuss the framework for the Advanced Tax Increment Finance Course.

Understanding your state’s TIF statute is essential to mastering the use of TIF as an economic development finance tool. This session will look at common components of model TIF statutes from a variety of states. In addition, speakers will discuss issues related to the political process and recommended practices for formulating or revising a TIF statute.

Ideally, TIF policies should be proactive but flexible. This session will cover the process of establishing a sound TIF policy and typical elements of effective guidelines and procedures. Speakers will discuss what should and shouldn’t be included in TIF guidelines, consequences of not following guidelines, and issues related to transparency, due diligence, and accountability.

This session will cover three distinct but related elements of project feasibility and underwriting: a) Reviewing real estate market feasibility of a proposed TIF-funded project; b) Developing sound, conservative TIF revenue projections for use in sizing and structuring the transaction; and c) Assessment of the project “financing gap” to determine how much TIF is needed, and what deal structure is most appropriate. Speakers will discuss the technical issues of modeling TIF revenue and pro forma-based gap analysis.

This session will focus on how TIF can fit into the overall financing structure of a project. Topics will include up-front vs “back ended” TIF funding arrangements and the various methods of packaging TIF funding, including bonds, notes, and “pay as you go.” This session will wrap up with an overview of term sheets and development agreements—the key documents defining the TIF deal.

Bonds are one of the most important methods by which TIF funds are made available to fund public and private improvements. This session will focus on the major types of TIF bonds, outline key considerations in successful TIF bond issuance, discuss bond market dynamics, and describe how the feasibility of TIF bonds can be enhanced by other tools such as backup special assessments.

It is important to understand the typical challenges faced when managing and monitoring active TIF districts. This session will address what you should expect once a TIF deal has been completed and why it is critical to maintain communications with bond investors and the community.