18-46.When improvements in the infrastructure are financed by additional property taxes applied to properties in the geographical area of the development it is termed:

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Tax-increment financing (TIF) is the mechanism for financing improvements in infrastructure, usually in blighted or distressed areas, by using the additional property tax revenue generated by the development. The tax increment is the amount by which the increased value of the properties in the area exceeds the original assessed value before development. The additional revenue is then used to repay the financing. Density bonus is a zoning incentive that allows a developer to build additional units or floors in exchange for providing certain community benefits. Senior financing is a type of debt financing where the lender has a priority claim on assets over other creditors in case of bankruptcy or default. Partial release provision is a clause in a mortgage or loan agreement that allows a portion of collateral to be released as loan payments are made.

18-46When Improvements in the Infrastructure Are Financed by Additional Property