Tax increment financing (TIF) is a public financing method used to subsidize urban redevelopment and infrastructure improvements, where the future tax revenue generated by a property is used to fund the initial costs of the project. TIF aims to attract investment in blighted or underdeveloped areas, using the increased property taxes that result from enhanced property values to pay for development costs. This mechanism can be crucial in supporting affordable housing initiatives by leveraging increased tax revenues to finance housing projects and related infrastructure.
congrats on reading the definition of Tax Increment Financing. now let's actually learn it.