Laserfiche WebLink
WHAT IS THE LGA/HACA ELECTION ? <br /> 410 <br /> In 1990, the Legislature initiated the LGA/HACA reduction <br /> which penalized authorities for providing TIF Assistance . In <br /> 1995, the Legislature provided an alternative to this penalty. <br /> An Authority may now elect to make a qualifying contribution to a <br /> project . The contribution may not include tax increments or <br /> developer payments and must be used to pay project costs and not <br /> for general government purposes or for costs a city would have <br /> incurred without the project . A city may receive assistance for <br /> its local contribution from other affected units of government . <br /> For example, if the state contributes to a project, the local <br /> contribution may be reduced by one-half of the dollar amount of <br /> the state contribution. A limitation in the use of this <br /> exemption is that the maximum city contribution for all TIF <br /> Districts cannot exceed 20 of the city' s net tax capacity. <br /> CASSERLY MOLZAHN & ASSOCIATES, INC. 6/10/96 <br />