The City of Stoughton is looking into generating money for affordable housing projects through a 10-year-old provision in state law.
An “Affordable Housing Extension” was added to the state’s tax-increment financing law in 2009, allowing municipalities to extend the life of a TIF district (TID) by a year.
TIF is a financial tool used by municipalities to incentivize economic development by pooling increased taxes on that development among the overlying taxing jurisdictions. Normally, a TID must be closed after the project debt is paid off.
The Finance committee, which met Tuesday, June 25, did not take any action on extending the life of TID 3, which covers Business Park North. Alders shared thoughts on how to navigate using the extension and how the money would be used.
The parameters need to be finalized by November, finance director Jamin Friedl said at the meeting, which would give enough time for review by staff and approval by the Common Council before the end-of-the-year deadline.
Friedl said there would be around $500,000 put into the account, and the committee discussed creating a revolving loan fund and a first time homeowners program, with half possibly also going toward the Housing Authority, which works with affordable housing projects around the community.