Tax Increment Financing Guarantee Program  (TIF)

To promote and stimulate the general economic welfare of various regions and communities in the Commonwealth, and to assist in the development, redevelopment and revitalization of brownfield and greenfield sites in accordance with the Tax Increment Financing Act (TIF). The program provides credit enhancement for TIF projects to improve market access and lower capital costs through the use of guarantees to issuers of bonds or other indebtedness.

Any issuer of TIF bonds for a project located within a municipality, other than a city of the first or second-class, may apply. Issuers include all municipalities and their authorities, including boroughs, townships, towns, counties and home rule municipalities.

• infrastructure and environmental projects for industrial enterprises and retail establishments
• infrastructure, environmental and building projects for manufacturers, hospitals, convention centers and associated hotels
• utilization of abandoned or underutilized industrial, commercial, military, previously mined institutional sites or buildings; or undeveloped sites planned and zoned for development in accordance with any existing comprehensive municipal plan

• maximum guarantee amount per project is $5 million
• unless in circumstances of foreclosure, default, or violation of loan made, the Commonwealth Financing Authority may not approve an application if the Authority would be required to operate, service or maintain the project under the lease or other agreement

• project must be located in a blighted area (containing the characteristics of blight as described in the Urban Redevelopment Law)
• project must be located within a TIF district
• project must be located on previously utilized property or on undeveloped property that is planned and zoned for development
• project must demonstrate its ability to comply with the TIF law prior to the issuance of bonds or other indebtedness
• applicants must show that the revenue to be realized as a result of the project will be sufficient to off-set the amount of the debt service
• business or private developers must agree to create a certain number of permanent full-time jobs within the TIF district

Please contact Larry Morgan for full details and assistance.