“TIF” stands for “Tax Increment Financing,” a special tool that the City of Chicago can use to generate money for economic development in a specific geographic area. TIF allows the City to re-invest all new property tax dollars in the neighborhood from which they came for a 23-year period. These “new” revenues – also called “increments” – arise if new development takes place in the TIF district, or if the value of existing properties rises, resulting in higher tax bills. These funds can be spent on public works projects or given as subsidies to encourage private development. But TIF also makes it much easier for the City to acquire private property and demolish buildings to make way for new construction.

With consistent community participation, TIF can be a tool for implementing a community-based revitalization plan through encouraging affordable housing development, improving parks and schools, fixing basic infrastructure, putting vacant land to productive use, creating good-paying jobs, and meeting other local needs.

Without strong and sustained public participation, however, TIFs can give the City power to change the basic character of a neighborhood against the wishes of those who live and work there, accelerate the pace of gentrification, and drive up property values to the point that existing residents and businesses can’t afford to stay in the community. In short, TIF is a mixed bag, and its success or failure depends on how active the community is in their planning and implementation.