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<br />Soils condition districts. The purpose of a soils condition district is to assist in the <br /> <br /> <br />redevelopment of property that is not developable due to the existence of hazardous <br /> <br /> <br />substances, pollution, or contaminants. The estimated cost of the removal and remedial action <br /> <br /> <br />must exceed the fair market value of the land. Tax increment revenue may be collected from a <br /> <br />soils condition district for up to 20 years from receipt of the first tax increment. Tax increment <br /> <br /> <br />money may only be used to (1) acquire property containing the conditions requiring removal or <br /> <br /> <br />remedial action, (2) pay the cost of the removal or remedial action, and (3) pay administrative <br /> <br /> <br />expenses of the district, including preparation of the development action response plan. Tax <br /> <br /> <br />increment funds may not be used for cleanup or remediation of sites contaminated by petroleum <br /> <br /> <br />products. <br /> <br /> <br />Housing districts. The purpose of a housing district is to encourage the development of <br /> <br /> <br />low- and moderate-income housing. There are no blight criteria for a housin~J district. In fact, a <br /> <br /> <br />housing district can be established on bare land, as long as the qualifying criteria are met. To <br /> <br /> <br />qualify as a housing district, at least 80 percent of the fair market value of the, improvements <br /> <br /> <br />must be for low- and moderate-income housing. Up to 20 percent of the fair market value of the <br /> <br /> <br />improvements may be for commercial uses or uses other than low- and moderate-income <br /> <br /> <br />housing. Tax increment revenues may be collected from a housing district for up to 25 years <br /> <br /> <br />from receipt of the first tax increment. Tax increment revenues may be used to finance land <br /> <br /> <br />acquisition, site preparation, installation of public improvements, administrative expenses, <br /> <br /> <br />and/or to undertake an interest reduction program. Interest reduction programs are limited to <br /> <br /> <br />rental housing and cannot exceed 15 years. <br /> <br /> <br />Economic development districts. An economic development district is a TIF district that <br /> <br /> <br />does not meet the requirements for any other type of district. A finding must be made that the <br /> <br /> <br />establishment of an economic development district is in the public interest because it will (1) <br /> <br /> <br />discourage commerce, industry, or manufacturing from moving their operations to another state <br /> <br /> <br />or city, (2) increase the employment in the state, and/or (3) preserve and enhance the tax base <br /> <br />18 <br />