Baltimore City is taking a significant step to tackle its vacant housing crisis with a first-of-its-kind, noncontiguous tax increment financing (TIF) district. The initiative targets nearly 8,000 vacant properties, primarily in East and West Baltimore, as part of Mayor Brandon Scott’s $3 billion strategy to eliminate vacant housing citywide.
A TIF allows the City to borrow money against future increases in property tax revenue generated by improvements in a designated area, such as revitalized properties or new infrastructure.
The City Council will consider two bills: one to create the TIF district and another to issue up to $65 million in bonds for the work. With additional funding from the State and a revived industrial development authority, the total bond package could reach $150 million over 15 years.
“This TIF is a crucial tool in our effort to transform neighborhoods that have long suffered from disinvestment,” said Mayor Scott. “With this approach, we’ll scale up our efforts to eliminate vacant properties and bring much-needed development to areas that have been neglected for far too long.”
The proposed TIF district will focus on scattered, noncontiguous properties that require the most attention. Housing Commissioner Alice Kennedy emphasized that the funding would be a “game changer” in scaling up vacant property remediation efforts across Baltimore City.
The City plans to issue the bonds in phases, starting with $65 million in the coming months, pending City Council approval. Officials expect visible progress on vacant property rehabilitation within a year of issuing the bonds. In addition to acquisition and remediation, the funds will support infrastructure improvements like sidewalk repairs and lighting, further revitalizing disinvested neighborhoods.
