Legislation was signed into law on May 12, 2010 that allows a municipality to designate a tax incremental district as a distressed or severely distressed district by resolution, thereby extending its receipt of positive increment over a longer lifetime.
Under the new law, a district designated as distressed may remain in existence and receive positive tax increments for up to 10 years after it would otherwise terminate. A severely distressed district, with value increment that has declined at least 25% from its highest value increment in any year, may remain in existence and receive positive tax increments for up to 40 years. To qualify for either designation, a district must have been in existence for at least seven years and have had no amendment to its project plan after the effective date of the legislation. A public hearing is required, and the joint review board must evaluate and approve the designation by resolution before the local legislative body may do so.
For more information on taking advantage of the new law, please contact your Stafford Rosenbaum attorney or an attorney on our Government Law Team.