California state laws on TIF

Tax Increment Financing (TIF) in California allows local governments to fund urban development projects by capturing the future increase in property taxes from a designated area. When a district is created, the current property tax base is "frozen," and subsequent increases in property values generate additional revenue, which is reinvested into the district for improvements like infrastructure, affordable housing, or economic development. State law regulates TIF to ensure accountability and transparency, preventing misuse of funds. Essentially, TIF leverages future property tax gains to finance current redevelopment efforts, fostering community growth while safeguarding public interests.