HB 712 -- Tax Increment Financing Projects

Sponsor:  Curls

For all tax increment financing (TIF) redevelopment plans and
projects, including housing units, adopted or approved by
ordinance after December 31, 2009, this bill requires 16% of the
payments in lieu of taxes deposited into the Special Allocation
Fund to be transferred into the newly created Affordable Housing
Fund.

The housing fund will be administered by the municipality's TIF
commission and will provide low-interest loans and grants within
the municipality for affordable housing units for a low-income
project.  A low-income project is a housing project which has
restricted rents which do not exceed 30% of the median income for
at least 40% of its units and are occupied by individuals or
families with incomes of 60% or less of the median income or at
least 20% of the units occupied by individuals or families with
incomes of 50% or less of the median income.

Prior to receiving loans or grants from the housing fund, the
owner or any successive owner must enter into an 18-year
agreement with the commission limiting the use of these units to
affordable housing during the life of the agreement.  Instead of
complying with this requirement, the proponents of the
redevelopment project may choose to reserve 8% of any new housing
units created under the redevelopment plan for affordable housing
units that have restricted rents not exceeding 30% of the median
income and must be occupied by individuals or families having an
income of 60% or less of the median income.  The owner or any
successive owner must enter into an 18-year agreement with the
commission limiting the use of these units to affordable housing.
In either case, if the agreement is violated, the commission may
sue to recover the full amount of any loan or grant, plus any
damages of up to $1,000 per month from the first day of each
month of the violation.  The performance of the agreement must be
secured by a deed of trust or other lien encumbering the property
and must be filed with the county recorder of deeds.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:25 am