Performance assurances are a systematic process of evaluating performance, quality, and alignment with the Housing Infrastructure Agreement. They are contractual commitments designed to ensure that the project delivers the promised housing and tax increment benefits to the municipality.
Common types of performance assurances for tax increment financed projects include:
- development milestones and timelines.
- minimum development standards, such as floor area ratios or density requirements.
- maintenance and service obligations.
- “but-for” development commitments.
- use of CHIP revenue for eligible project costs.
- job creation and economic impact targets.
- taxpayer or minimum service agreements.