SB2298 Summary: Tax Increment Financing (TIF) Reforms

• Shortens the completion date for new redevelopment project areas from 23 years to 10 years (after July 1, 2021), with optional extension to 15 years instead of 35 years, requiring joint review board approval.

• Adds two new eligibility factors for designating blighted areas: annual average unemployment rate at least 120% of the state's rate, or poverty rate of 20% or higher, with 50%+ of children in federal free lunch programs or 20%+ of households receiving food stamps.

• Removes or modifies several existing 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 reduces distribution timeline from 180 days to 90 days after the municipal fiscal year closes.

• Prohibits approval of new or modified redevelopment project areas that overlap with existing redevelopment project areas, effective July 1, 2021.