Local redevelopment boards could use their funds to repay debt early

Local redevelopment boards could use their funds to pay debt early. Boards could use their district tax funds and other funds they maintain. The payments could fall outside the yearly spending plan. The debt documents must allow early payoff. Boards making early payments could keep the taxable value tied to the original repayment schedule. This provision would start July 1, 2026.

Local redevelopment boards could spend district tax money on upkeep. This covers infrastructure projects inside the redevelopment tax district. District tax money must have funded or supported the project. Spending is limited to the project's remaining life. Other local taxing bodies keep their upkeep duties for projects the district did not fund and after the district's tax allocation ends. This provision would start July 1, 2026.

Local redevelopment boards could share district tax revenue with development groups. This covers local economic development groups. Indiana's economic development agency must recognize the group. The amount may not exceed 30% of the group's yearly budget. This provision would start July 1, 2026. A sharing period must be shorter than four years.

Local redevelopment boards would invite other taxing bodies to project hearings. The invitation goes to public bodies that tax the same area as the proposed redevelopment project. The hearing must show how releasing 10%, 20%, or 30% of the district's taxable value could affect tax cuts required by property tax caps. People must have a chance to discuss the project and comment. Boards must record which taxing bodies attend. These hearing provisions would start July 1, 2027.