Would the value of lots being donated to cover the LMI obligation need to be entered as an Outstanding LMI Obligation?
The Fair Market Value (FMV) of the 6 lots will eventually satisfy a part of the total LMI requirement. Until the Lots are distributed, though, the FMV of the lots would need to be included in the LMI requirement. As the lots are distributed, the amount of the LMI requirement can be reduced by the FMV of each lot as it is given away. If the entire LMI requirement has been certified on Form 1 then the FMV of the lots should be decertified on Form 3 so the City does not over collect TIF to satisfy the LMI requirement.
|Program Area|| |
Tax Increment Financing, TIF