HB 5856 Summary

• Expands downtown development authority (DDA) powers to include retail business incubators, loan programs for building improvements, broadband/wireless services, and public services exceeding baseline levels within downtown districts.

• Increases transparency and accountability by requiring DDAs to maintain websites with board minutes, budgets, audits, development plans, tax increment finance plans, and detailed annual reporting on financial metrics and economic outcomes.

• Allows tax increment revenue accumulation for up to 15 years (previously 5 years) if the tax increment financing plan specifies reasons, timeframe, and uses for accumulated funds.

• Establishes "catalyst development projects" in municipalities with 600,000+ population, allowing $8 million in captured school taxes for building demolition and project costs.

• Repeals three prior economic development acts (Historic Neighborhood Tax Increment Finance Authority Act, Neighborhood Improvement Authority Act, and Private Investment Infrastructure Funding Act) consolidating their provisions into the downtown development authority framework.