Chicago Mayor Brandon Johnson suggested borrowing more than $1 billion to fund affordable housing and other economic initiatives.
Shifting away from the city’s current funding methods, the proposal allows for dozens of tax increment financing districts to expire with the goal that revenue will increase the city’s funds. TIFs currently give developers breaks in their property taxes and previously played an important role in Chicago’s economic development since their implementation more than three decades ago. In 2022, TIF districts took in $1.3 billion dollars in revenue.
Despite looming pension debt and City Hall’s ineffectiveness in collecting debt, some aldermen see this plan as the perfect opportunity to do away with TIFs.
“There was always going to come a time where we were going to have to think past TIF, and in a way, I’m grateful that this
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