Homestead Preservation District Could Soften The Blow Of Gentrification

With its downtown booming, Austin, Texas is trying to help homeowners who are feeling the squeeze from rising property values -- by buying their land.

1 minute read

January 12, 2007, 7:00 AM PST

By Christian Madera @http://www.twitter.com/cpmadera


"A homestead preservation district is modeled after tax increment financing. In a TIF district, a percentage of revenue generated by property taxes in a geographic area is designated to fuel future growth, repair, upkeep, or development;"

Now this financing model, which is often used as a tool to raise an areas property values, is being used to help owners effected by its success.

"The idea is that if a resident has trouble keeping pace with rising property taxes, the city could buy the homeowner's land and lease it back to her at no cost. This drastically lowers taxes by leaving homeowners to pay tax only on their homes and any subsequent improvements, not on the spiraling land costs. The city would pay for the lands by garnering a percentage of the increased appraisal costs in the district."

Friday, January 12, 2007 in The Austin Chronicle

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