5. HRSR 08-01-2011 - Laserfiche WebLink

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(b) private development consisting of the construction or substantial rehabilitation of buildings and ancillary facilities commences before July 1, 2012, and would not commence before that date without the assistance; and (c) tax increments under the spending plan are spent on or before December 31, 2012. The municipality must approve a written spending plan that specifically authorizes the assistance following a public hearing on the spending plan. Tax increment authorities should consider reviewing any existing spending plans and revising any provisions reflecting the previous deadlines, subject to a new public hearing and approval by the municipality. There were no changes to the law relating to establishment of "compact development districts" for which the request to certify must be filed with the county before June 30, 2012. 2. Timeline for Housing Projects. Notwithstanding the foregoing, the timelines for housing developments were not extended as liberally. (a) To use economic development districts for low/moderate income housing, construction must commence before July 1, 2011 (i.e., no extension of time from the 2010 legislation). (b) To use economic development districts for market rate housing, construction must commence before January 1, 2012 (i.e., a six-month extension of time from the 20101egislation). (c) To use temporary pooling in accordance with a spending plan for low/moderate income housing, construction must commence before July 1, 2011, and tax increments under the spending plan must be spent on or before December 31, 2011. (d) To use temporary pooling in accordance with a spending plan for market rate housing, construction must commence before January 1, 2012, and tax increments under the spending plan must be spent on or before July 31, 2012. 3. Pooling of Tax Increments for Developing Housing on Sites of Abandoned and Foreclosed Housing. Authorities may increase by up to ten percentage points the permitted amount of tax increments (25% for redevelopment districts, 20% for others) from an existing tax increment district for expenditures outside of such tax increment district to pay the cost of site acquisition, relocation, demolition of existing structures, site preparation, and pollution abatement on one or more parcels, if the parcel contains a residence containing one to four family dwelling units that has been vacant for six or more months and is in foreclosure, and only after the redemption period stated in the notice provided under section 580.06 has expired. The acquired and cleared parcels must be used for housing, the market value of which does not exceed the lesser of: (a) 150 percent of the average market value of single-family homes in that municipality; or 387282v1 JSB KG400-1 2