HEART OF HOLLYWOOD TAX INCREMENT FINANCING (TIF) STUDY

Welcome to The Heart of Hollywood Tax Increment Financing Study (the “Study”) webpage. This Study is assessing how the Hollywood Community could use tax increment financing (TIF) to help fund infrastructure projects and affordable housing outlined in the Walk of Fame Master Plan and the proposed Hollywood Community Plan Update.

WHAT IS TAX INCREMENT FINANCING (TIF)?

Tax Increment Financing, referred to as “TIF”, is not a new tax. Instead, TIF is a set of public financing tools that allocate a portion of future property tax revenue, within an established district boundary, to be used to fund capital and operating costs related to infrastructure developments. TIF works by freezing property tax revenues from the district at a base level (“baseline revenue”) and diverting a portion of additional tax revenue in future years above the baseline revenue (the “increment”) to pay for projects directly or to pay back bonds serviced by the increment. TIF mechanisms only redirect property taxes and do not create any additional tax burden for property owners.

A Growing Increment can Fund Public Projects

A Growing TIF

 

Source: HR&A Advisors

 

WHAT IS AN EIFD?

The Study evaluated several TIF tools available in California and determined that an Enhanced Infrastructure Financing District (“EIFD”) would be most suitable for Hollywood given its flexibility as a funding source and public agency familiarity with the tool and adoption process.

EIFDs are a type of TIF district that cities and counties can form to help fund economic development projects. EIFDs can finance capital costs or operations associated with public infrastructure projects, such as parks, improved transit, enhanced water and sewer systems, as well as affordable housing. EIFDs do not increase property taxes and cannot pull property taxes from school districts.

Heart of Hollywood Graphic #2

 

HOW WILL AN EIFD AFFECT OUR COMMUNITY?

An EIFD will make growth work for Hollywood. Without imposing an additional tax burden on property owners, an EIFD promises new and accelerated funding for priority projects within Hollywood, addressing long-standing community priorities and needs. Participation of other taxing jurisdictions in the EIFD, such as Los Angeles County, will earmark TIF funds for investment in Hollywood. Moreover, EIFD-funded projects will catalyze new development that would otherwise not occur, growing the overall tax base.

Heart of Hollywood #3

WHO IS LEADING THIS ASSESSMENT?

This project is funded by Southern California Association of Governments (SCAG) Regional Early Action Plan grant program with the goal of providing planning assistance to help jurisdictions implement and adopt Housing Supportive Tax Increment Financing Districts.

This project also has the support and oversight of City of Los Angeles Council District 13 and the City of Los Angeles Economic & Workforce Development Department.

HOW CAN I LEARN MORE?

Participate in our community workshops:

Public Meeting #2 (Virtual)

Date: October 12, 2022

Time: 5:30 PM

Registration link:  https://us06web.zoom.us/webinar/register/WN_J2ZAjDDER9ynjKP9yn66lg

 

Sign up to receive project updates here

 

PROPOSED PROJECT BOUNDARIES:

The area being analyzed for this project is shown below. The proposed boundary was identified to maximize revenue potential, capture priority redevelopment projects, and align with growth areas in the proposed Hollywood Community Plan Update, including the Regional Center and Vine St commercial corridor. The boundary will be finalized based on community feedback.

 

EIFD Boundary

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PROJECT MILESTONES

  • June 2022 - Evaluation of Tax Increment Financing Mechanisms
  • Early July 2022 – Study Session #1
  • Late July 2022 – Public Workshop #1
  • Early September 2022 – Study Session #2
  • Late September 2022 – Public Workshop #2
  • January 2023 – Public Financing Authority Board Recommendations
  • February 2023 – Council Study Session
  • April 2023 – Final Deliverables on District Formation Materials
  • May 2023 – Council Meeting (to consider EIFD adoption)

PROJECT RESOURCES

STAY CONNECTED

HeartofHollywoodTIF@arellanoassociates.com

or

Councilmember Mitch O’Farrell, 13th District
councilmember.ofarrell@lacity.org