tax diversion programs
Tax Increment Financing (TIF) and Transit Revitalization Investment District (TRID) are public financing tools the URA uses to foster large-scale redevelopment.
Tax Increment Financing (TIF), Transit Revitalization Investment District (TRID), and Parking Tax Diversion (PTD) are public financing tools utilized by the URA to foster large-scale redevelopment in the City of Pittsburgh that would otherwise not be financially feasible.
These tax diversion programs are a vital mechanism for diversifying the City of Pittsburgh's economic base, attracting new residents and improving the quality of life for our residents.
How it Works
Public infrastructure, such as streets, bridges, or parks, is partially financed through the issuing of revenue bonds or bank loans that are repaid by future increases in tax revenue resulting from the new development (tax increment). The TIF/TRID/PTD debt is typically backed by some form of security in addition to the pledged tax increment, such as a bank letter of credit or minimum payment agreement with the developer.
As of 2017, the URA has completed 31 TIF/TRID projects. Together with our partners at the City, County and School District, we have financed $336 million in critical public infrastructure investments that have leveraged nearly $3 billion in private capital. Our public partners have allowed the URA to expand our resources to make Pittsburgh an even more livable and competitive urban center.
TRID was established by Pennsylvania legislation in 2004. Under the TRID Act, municipalities, authorities, or transit agencies must undertake a planning study for the creation of the district. Three TRID studies have been completed in the City of Pittsburgh:
- East Liberty Station: Realizing the Potential
- Homewood Station Transit Oriented Development Study
- SmartTRID Corridor Planning Study