Not General Obligation Bonds: TIF bonds are non-recourse debt. They are not backed by the full faith and credit of the city. If the projected increase in tax revenue doesn’t materialize, bondholders bear the loss.
Self-Financing (in theory): The investment is designed to pay for itself. Growth triggered by improvements generates the revenue to repay the bonds.
In summary, TIF bonds are a tool for financing redevelopment by borrowing against the future property tax growth that the redevelopment itself is expected to create.
For developers or municipalities not wishing to wait out the full term of repayment, Builder Financial Resources can introduce opportunities for clients to monetize TIF bonds in discounted lump-sum payments, or collateralize subject TIF bonds to obtain a loan.
TIF bonds are municipal bonds issued by a city or local government to pay for public improvements in a defined district. They are repaid solely by the increase in property tax revenue — the “tax increment” — generated by rising values within that district.
Think of it as a bet on future growth: the city borrows today to make an area more attractive, then uses the new taxes from that investment to pay off the loan.
Base Property Value: $100 million
Property Tax Rate: 2%
Annual “Base” Tax Revenue: $100M × 2% = $2M (continues going to city, schools, and county)
The city issues TIF bonds to build new roads and sewers. This attracts a corporate headquarters and apartments.
New Total Property Value: $150 million
Increment Value: $150M – $100M = $50M
Annual “Increment” Tax Revenue: $50M × 2% = $1M (dedicated to repaying the TIF bonds)
65% LTC, converts 100% construction loan, up to $10m, interest only, 18 months.
Up to 80% LTC, 24 month term w/12 month extension, up to $25m. line or draw disbursement.
Up to 85% LTC, 24-60 month term, up to $50m, primary and secondary markets, mixed use.
Multi year lines, up to 100% land cost and construction costs, land no more than ⅓ of construction cost, additional funds may be available for horizontal development.
Builder Lot Loan
65% LTC, converts 100% construction loan, up to $10m, interest only, 18 months.
SINGLE FAMILY
MULTI FAMILY
We fund residential, mixed-use, commercial, and public-private developments—especially those with complex capital stacks, incentive layers, or timing gaps. Projects with TIF, special assessments, abatements, or pending entitlements are a strong fit.
Traditional construction loans often come with rigid underwriting criteria and longer approval times. Our capital solutions are faster, more flexible, and tailored to meet the timing and structure of your specific deal—including predevelopment, bridge, and incentive-backed needs.
Yes. We commonly provide gap or subordinate financing that complements senior debt. Our team works collaboratively with your lender to structure funding that strengthens the entire capital stack.
No. While we specialize in incentive-aligned capital, we also fund private projects where timing, equity constraints, or deal complexity require custom financing.
We move quickly. Once terms are agreed upon, funding can be completed in a matter of weeks—often in parallel with your primary loan or entitlement schedule.
Yes. We offer funding for site acquisition, entitlement, and predevelopment activities. These are critical stages we understand deeply from a development and capital perspective.
Not General Obligation Bonds: TIF bonds are non-recourse debt. They are not backed by the full faith and credit of the city. If the projected increase in tax revenue doesn’t materialize, bondholders bear the loss.
Self-Financing (in theory): The investment is designed to pay for itself. Growth triggered by improvements generates the revenue to repay the bonds.
In summary, TIF bonds are a tool for financing redevelopment by borrowing against the future property tax growth that the redevelopment itself is expected to create.
For developers or municipalities not wishing to wait out the full term of repayment, Builder Financial Resources can introduce opportunities for clients to monetize TIF bonds in discounted lump-sum payments, or collateralize subject TIF bonds to obtain a loan.
TIF bonds are municipal bonds issued by a city or local government to pay for public improvements in a defined district. They are repaid solely by the increase in property tax revenue — the “tax increment” — generated by rising values within that district.
Think of it as a bet on future growth: the city borrows today to make an area more attractive, then uses the new taxes from that investment to pay off the loan.
Base Property Value: $100 million
Property Tax Rate: 2%
Annual “Base” Tax Revenue: $100M × 2% = $2M (continues going to city, schools, and county)
The city issues TIF bonds to build new roads and sewers. This attracts a corporate headquarters and apartments.
New Total Property Value: $150 million
Increment Value: $150M – $100M = $50M
Annual “Increment” Tax Revenue: $50M × 2% = $1M (dedicated to repaying the TIF bonds)
65% LTC, converts 100% construction loan, up to $10m, interest only, 18 months.
Up to 80% LTC, 24 month term w/12 month extension, up to $25m. line or draw disbursement.
Up to 85% LTC, 24-60 month term, up to $50m, primary and secondary markets, mixed use.
Multi year lines, up to 100% land cost and construction costs, land no more than ⅓ of construction cost, additional funds may be available for horizontal development.
Builder Lot Loan
65% LTC, converts 100% construction loan, up to $10m, interest only, 18 months.
SINGLE FAMILY
MULTI FAMILY
We fund residential, mixed-use, commercial, and public-private developments—especially those with complex capital stacks, incentive layers, or timing gaps. Projects with TIF, special assessments, abatements, or pending entitlements are a strong fit.
Traditional construction loans often come with rigid underwriting criteria and longer approval times. Our capital solutions are faster, more flexible, and tailored to meet the timing and structure of your specific deal—including predevelopment, bridge, and incentive-backed needs.
Yes. We commonly provide gap or subordinate financing that complements senior debt. Our team works collaboratively with your lender to structure funding that strengthens the entire capital stack.
No. While we specialize in incentive-aligned capital, we also fund private projects where timing, equity constraints, or deal complexity require custom financing.
We move quickly. Once terms are agreed upon, funding can be completed in a matter of weeks—often in parallel with your primary loan or entitlement schedule.
Yes. We offer funding for site acquisition, entitlement, and predevelopment activities. These are critical stages we understand deeply from a development and capital perspective.