Public Act 281 of 1986, as amended, allows a city, village or urban township to utilize tax increment financing to fund public infrastructure improvements. The tool is designed to promote economic growth and job creation.
Communities across Michigan have utilized this tool to extend sewer and water lines, construct roads, service manufacturing, agriculture processing or high technology operations.
WHO IS ELIGIB LE TO APPLY? Any city, village or urban township, is eligible to create an LDFA.
WANT TO ESTABLISH A LDFA? The financing mechanism allows for the capture of the incremental growth of local property taxes over a period of time to fund public infrastructure improvements. By borrowing against the future tax increments, the LDFA is able to finance these public improvements, which can lead to new development opportunities within the community.
For more information visit http://www.michiganadvantage.org/cm/files/Fact-Sheets/LocalDevelopmentFinancingActPA281.pdf or to see what a local ldfa is doing to market its properties visit www.hurontwpldfa.com