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Special Session Brings New Requirements for Redevelopment Commissions

By Matt Eckerle, Principal, May 29, 2018

The May 14th special session of the Indiana General Assembly saw passage of HEA 1242 in both chambers, and the bill was subsequently signed into law by Governor Holcomb. Included in this law are new requirements affecting redevelopment commissions.

Effective July 1st, all redevelopment commissions will be required to hold an annual meeting during which it must present certain financial information for the governing bodies of the taxing units that overlap with the boundaries of established Tax Increment Finance (TIF) allocation areas. The requirement, which mandates long-term planning for TIFs and direct engagement with other taxing authorities, encourages increased communication between redevelopment commissions and its other taxing units.

Although specific guidance from the state regarding timing and content requirements is not yet available, the bill outlines items that a redevelopment commission must address in its meeting with overlapping units. The commission’s meeting must address the following items:

  • its budget for tax increment revenues
  • the long-term plan for each TIF area
  • the impact of each TIF area on overlapping taxing units.

Additionally, the new law states that the governing body of an overlapping taxing unit may request that a member of the redevelopment commission appear at a public meeting of that body.

This new law affects all redevelopment commissions in the State. Direct engagement with overlapping taxing units and the development of strategic financial plans for TIF areas, while always a best practice, now have greatly increased importance to redevelopment commissions.

Your community’s overall financial planning process can make use of the information developed to meet these new requirements. Moreover, the redevelopment commission will have access to additional information as it makes its annual assessed value pass-through determination each spring.

Please note: This article references the special session version of HEA 1242, which addresses State and Local Administration. Bill details can be found by clicking here.

Umbaugh will assist your community with the development of TIF strategic financial plans, budgets and impact analyses so you are compliant with the new requirements. Please contact us at .(JavaScript must be enabled to view this email address).

Information in this article was believed current as of the date of publication. As you know, changes occur frequently. The information presented is of a general educational nature. Before applying to your specific circumstances, please contact us at vision@umbaugh.com.


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