SB2938 Summary: Tax Increment Financing (TIF) Redevelopment Project Areas

• Shortens the completion deadline for new redevelopment project areas designated on or after July 1, 2020 from 23 years to 10 years, with optional extension to 15 years (requires joint review board approval and 30 days' notice to taxing bodies).

• Adds two new economic distress factors to qualify areas as "blighted": unemployment rate at least 120% of state average, or poverty rate of 20%+ (or 50%+ children in free lunch program, or 20%+ households receiving food stamps).

• Removes or eliminates several previous "blighted area" factors including dilapidation, deterioration, excessive vacancies, lack of ventilation, deleterious land use, and lack of community planning.

• Requires joint review board and municipality approval of surplus funds and provides they must be distributed within 90 days (instead of 180 days) after fiscal year close, with a written report justifying the surplus determination.

• Prohibits approval of new or expanded redevelopment project areas that overlap with existing redevelopment project areas.