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Summary or Tax Increment 17-manci,ng Bill March 27, 1989 Page 2 clornpliance at less than 25 percent, of the cost, of constructing a new building. Parcels are not considered to he crcSMnt�Uthe land area 'is occupied. Each arca ol" a non- oiccu� licid by build'Lngs, and structures,, unle&&-�� P as contiguous distnicit W C11 as the entire district, must satis, Y one of the 'redevelopment tests. Bqxnditurc Of Pro=fi. The bill requires 95 lerccnt off the increment rcvcmucs from redcN,clopmeni districts to bic used to correct the conditions that quill Fie-s—,IaMarca as a i'ledevelopment district. The principal USC 41 M these funds VAU, be for acquiring and prepariRg--sftEs"tH`& contain substandard, buildings to mak-c fliese site competitive N61th blare land sites in undeveloped areas., Housing d1stricts, need not meet blight criteria, but at least two-thirds of the market value of projects must be used to, subsidize low and moderate income housing,. The law does, not contain specific income definitions or 0 a gwdelines for low and modcrate, incorne houslngt except that, the project must be "intended for occupancv by persons, or families of low and moderate income," as defined under a variety of state and federal law. To the extent, that tax increments are used, for interest reduction programs, state law does, impose income and rent lirniisyloo These districts are additionally subject, to a shorter, 12, year duration limit. li aw &'4 Wa 41 The bill I'Llnposes m" come requirements for TIC financed boos i.ng districts equivalent to those undcr federal 13%%- for bousm"g projects financed with, tax exempt bonds. Thiese, limitations apply for the duration of the district. F 1 #11 ailure to comply results in a reduction of the housing distnct"s, duration, limit to that of an economic dievelopment, district. � ko Vol N1 RTS) R, P P, z f 9 1 TIF is per mi,teed to be used to subsidize low and moderate M*Zome housing, in areas that do not meet the redevelopment criteria. Available, evidence, taken frorn a sample, of housing, district TIF plans on rile %vith the