Special Assessments Resource Center

A special assessment is an additional tax on a piece of property, generally in the form of real estate taxes. This additional assessment is collected by the local taxing authority and directed to a designated fund to finance projects, improvements or programming for the assessed district.

Special assessment districts are a common development financing tool. Every state provides some form of special assessment district financing. Most states offer more than one option. These tools are known by a variety of names and can be structured in a variety of ways, but there are two predominant methods.

The first method, Business and Neighborhood Districts, is the assembly of business and neighborhood groups into a district to generate funding for projects and programs. Business and Neighborhood Districts are typically run by property owners in the district. These owners impose self-assessed taxes on themselves in order to generate funds for physical improvements or other amenities.

The second approach, Government Districts, is a directly targeted assessment program organized by the local government. Government Districts come in many shapes and sizes. These districts often provide services that are similar in scope to those provided by Business and Neighborhood Districts. However, in these cases, government entities typically direct the work of these districts.

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-Understanding Special Assessments

Special Assessments are one of the most common tools local governments use to incentivize development in a district. Interested in learning more? This section contains resources on understanding the basics of special assessment financing.

The Rise of Innovation Districts Members only

Innovation Districts are creative urban ecosystems in which city leaders, start-ups, established firms, institutions, skilled workers, and entrepreneurs converge to capitalize upon new ideas and technological breakthroughs. Innovation districts are designed to bridge gaps between fields and make unusual and creative collaboration more likely to happen.

An Overview of Special Purpose Taxing Districts Members only

The National Association of Home Builders published this report focusing on Special Purpose Taxing Districts, a more efficient and effective way to fund public improvements in advance of growth, while at the same time ensuring that new growth pays for the improvements.

What is a Business Improvement District?Members only

This guide from SB Friedman defines tax increment financing and addresses the policies and procedures for creating a Business Improvement District or similar district.

Special Improvement District: Tool for Targeting Investment Members only

Gregory Davis at Ohio State University briefly explains special improvement/assessment districts and how they work.

-Resources

CDFA // BNY Mellon Development Finance Webcast Series: Layering the Capital Stack

This webinar discussed how Bonds, Tax Increment Finance, Tax Credits as well as the litany of federal funding through recent legislation can work for your project and ultimately the community that is benefitting.

State Agency Involvement in Hawaii's Transit-Oriented Development Members only

Economic Development | Infrastructure Finance | Public-Private Partnership (P3) Financing | Special Assessment Districts | Tax Increment Finance (TIF)

This report recommends ways that Hawaii state agencies can leverage transit-oriented development (TOD) to maximize benefits to the State of Hawaii.

Project-Based Financing Approach to Economic Development Members only

Community Development | Special Assessment Districts | Tax Increment Finance (TIF)

Emily Metzler of Muni-Cap & Chris Sheehan of Stifel to speak on Project-Based Financing in Virginia.

West Sacramento Infrastructure Financing District Members only

Infrastructure Finance | Special Assessment Districts | Tax Increment Finance (TIF)

Dennis McGuire of Piper Jaffray examines the use of infrastructure financing districts in the City of West Sacramento, discusses challenges and successes for developers.

Land Secured Finance and Industrial Financing Districts Members only

Infrastructure Finance | Special Assessment Districts | Tax Increment Finance (TIF)

Anna Van Degna of Stifel walks through Infrastructure Financing Districts, understanding them, and looks at the techniques used to encourage development on San Francisco's Mission Bay.

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-Programs Map

Search the map below for Special Assessment District resources by state. This specialized search is part of CDFA's Online Resource Database. Click on a state to see a sample of Special Assessment resources by state. Login with a CDFA Member account at the top of the page to view full results.

-Case Studies

CDFA Food Systems Finance Best Practices Guidebook

Linking development finance and food systems can be a daunting undertaking for any community. Research on the current ecosystem of food systems finance has positioned CDFA to identify key strategies for the path ahead in this work. The Food Systems Finance Best Practices Guidebook defines how traditional development finance tools can be used to launch and expand food and agricultural-related businesses and projects, and create successful food systems finance programs at the local and regional levels.

CDFA Food Finance White Paper Series: Food Systems & Targeted Tools

This white paper is part of a series examining the potential creation of a food systems asset class which supports the market growth of local and regional food systems. This paper focuses specifically on targeted financing tools that can be used to geographically target local and regional food system developments.

A Framework for Assessing Feasibility of Transit-Oriented Development (TOD) Project Sites Members only

This research from the Mountain-Plains Consortium explains what factors a transit agency uses to choose among alternative TOD locations in a transit network, and the relative importance of each factor. It aims to develop a decision support framework for transit agencies to use when choosing a TOD site by incorporating their unique factors and weights using a multiple criteria decision-making tool.

Opportunities to Use Assessment Districts to Finance Facilities and Services in California Members only

This report from the California Debt and Investment Advisory Commission (CDIAC) seeks to inform local agencies as well as others in the public finance community about the opportunities for using assessments within the constraints imposed by recent court decisions. The report necessarily takes into account the court decisions that have changed the way public entities must determine and impose assessments.

Assembling Capital for Mixed-Use Development Members only

Thomas Porter, Director of Commercial Lending at the Vermont Economic Development Authority, discusses unique development financing solutions for mixed-use development.

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-Headlines

Charlotte, MI Approves Special Assessment District That Will Raise $828K a Year for Fire Services
Fox 47 News | Jun. 21, 2021 | Infrastructure Finance | Special Assessment Districts | Tax Increment Finance (TIF)

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-Publications

Tax Increment Finance Best Practices Reference Guide 2nd Edition

Tax Increment Finance | CDFA Original Research

The Tax Increment Finance Reference Guide addresses what TIF is, why it should be used and how best to apply the TIF tool. The reference guide also highlights both TIF and special assessment projects from across the country and discusses how they can be applied to address many common economic development issues.

Advance Tax Increment Finance Best Practices Reference Guide 2nd Edition

Tax Increment Finance | CDFA Original Research

The Advance Tax Increment Finance Reference Guide examines model policies, guidelines and procedures, and outlines the TIF process from A to Z. Throughout the book, clear guidance is offered for assessing project feasibility and monitoring the performance of active TIF districts. In addition, the guide outlines the critical elements of state TIF statutes that should be known in order to ensure project success and long term economic prosperity.

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-Webcasts

CDFA // BNY Mellon Development Finance Webcast Series: Layering the Capital Stack

Value Capture Strategies: Tax Increment Financing Members only

This FHWA webinar discusses how Tax Increment Financing (TIF) can be utilized as a value capture strategy for transportation projects. The webinar is intended for professionals from States, cities, counties, Tribes, and metropolitan and rural transportation agencies looking for innovative funding and financial strategies to pay for transportation projects.

CDFA // BNY Mellon Webcast Series: Special Assessment Techniques for Transformative Community Improvements Members only

Community Development | Special Assessment Districts | Urban Development | Webcasts

This month’s CDFA // BNY Mellon Development Finance Webcast Series featuring Dr. Laura Wheeler from Georgia State University, Bryant Parker from White Goss, Austin Parker from Fisher, Patterson, Sayler & Smith, and Emily Metzler from MuniCap, Inc. includes a discussion on new and innovative uses for special assessments and how this tool is poised for greater use nationwide.

Georgia Webinar: Utilizing Community Improvement Districts in the Peach State Members only

Special Assessment Districts | State Finance Program | Webcasts

Expert panelists explored the prevalence of Community Improvement Districts projects in Georgia and how they are being used to finance revitalization in communities of all sizes during this webinar.

CDFA // BNY Mellon Webcast Series: What's Special About Special Assessment Financing?Members only

Community Development | Economic Development | Special Assessment Districts | Webcasts

During this CDFA // BNY Mellon Development Finance Webcast, the diverse nature of special assessment financing is showcased with examples from around the nation.

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