TIF Incentives
Rate stability through the planning phase
Hageman Capital locks purchase price and rate ahead of closing, holding proceeds stable while borrowing costs and Treasury yields move.
- Rate-locking mechanisms for proceeds stability while treasury rates fluctuate
- Proceeds certainty prior to construction loan closing
Bond Backing Types
Developer-backed and municipally backed bonds
Municipalities have increasingly shifted TIF financing from municipal general obligation credit support to developer backing. Hageman Capital purchases both structures and underwrites each on its own terms.
- Developer-backed bonds — repaid from a single project's incremental taxes
- Municipally-backed bonds — supported by municipal credit, and potentially general obligation credit
Single-Site TIF
Closing the equity gap without incurring additional debt
Single-site TIF bonds are issued for projects that would not start "but for" the incentive. Borrowing against the TIF bond may require the developer to contribute additional equity; selling it does not.
- Immediate cash proceeds from the TIF bonds
- No additional debt on the project, or additional developer equity contributed
- Improved returns at the project level
TIF as Project Capital
Tax increment financing is an advantage for commercial real estate developers.
TIF bridges the gap between a community's development objectives and a project's economics. Hageman Capital purchases the resulting single-site bonds and delivers the proceeds at closing.