A higher standard for TIF funding

Don’t take a shortcut with your TIF bonds, it will hurt your overall project’s return. Selling your bonds to Hageman Capital is the best way to maximize bond returns and keep your contributed equity within a project low.

Our team navigates the complexity of TIF structuring to maximize proceeds from your TIF award. We infuse immediate capital at construction loan closing based on the full bond term and put it towards equity in the development.

Unlock project capital

Tax increment financing (TIF) creation for your project

Typically, establishing a single-site project TIF requires direct coordination with the municipality. The process to value the TIF based on the development’s estimated taxes, will depend on local regulations, and the general negotiation between the municipality and the developer.

TIF Creation
The downside of loans and banks

Other TIF monetization methods limit proceeds and project feasibility

Traditionally, developers receiving TIF bonds either hold on to them and collect periodic cash flows or finance them through construction loans. Both strategies fall short in leveraging the full potential value of your TIF incentive for development cost. Hageman Capital provides up-front capital to purchase TIF bonds, which can cover additional project expenses and lower contributed equity.

Quote your TIF's proceeds

Municipal issuance of tax increment financing (TIF) bonds

Unlike traditional municipal bonds, single-site or developer backed TIF bonds are provided to the developer of a real estate project as an incentive, which allows them to capture a portion of incremental taxes generated by their project over time. That doesn’t mean developers receive a TIF incentive purely for a conceptual design. Tax increment financing requires major commitments from the municipality, to support further growth in their communities, and incentivize developers to complete projects that are unlikely to be developed without TIF. This exchange is usually predicated on how impactful a proposed development would be to the community.


Required plans and documentation for TIF approval

When working with your municipality to secure a TIF bond, you’ll typically need conceptual designs, as well as a feasibility study that includes a real estate pro-forma of your proposed development. Feasibility studies will normally include information on the type of project, as well as project costs (both hard and soft costs), along with the site plans and financial projections. All of this is critical to pass the “but for” test required for TIF incentives and can affect the details of your bond structure.

How project details and bond structure affect proceeds

TIF bond repayment types

Tax increment financing (TIF) can differ, whether the TIF bond is issued and secured by a TIF district or single-site project TIFs. The most common type of bond repayment is pay-as-you-go, meaning, the bonds are repaid by actual taxes collected over time. Selling your bond provides bulk up front capital for your project, without additional contributed equity.

Monetize your TIF
Tif Bond Funding and Capital

The expertise you need in real estate and financing

Maximizing your TIF for the highest proceeds requires extensive knowledge in both real estate and finance. It’s why selling developer backed bonds has not been a common option for developers in the past. Banks are willing to include it as additional proceeds in the construction loan, but funds are limited as a result. At Hageman Capital we have the expertise to help you turn your TIF bond into upfront capital for your project.

Get a free estimate on TIF proceeds today with our online calculator. Project feasibility is closer than you think.

Calculate funds from your TIF