Homestead Preservation Districts (HPDs), in combination with Homestead Preservation Reinvestment Zones, can provide a dedicated funding stream to reinvest in housing affordability for the most impoverished areas of a city.
Homestead Preservation Reinvestment Zones are a type of Tax Increment Reinvestment Zone or Tax Increment Financing model, which can be set up under the Homestead Preservation District law to ensure property tax dollars from economic development are reinvested in affordability for that area. The Homestead Preservation Districts and Reinvestment Zones do not establish new taxes or increase existing taxes on residents.
In 2007, Austin City Council established Homestead Preservation District A. In 2015, City Council approved Homestead Preservation Reinvestment Zone 1 and created a tax increment fund for use in HPD A.
Establishing a Homestead Preservation District will have no immediate impact on residents, however it is a preliminary step toward other actions, such as establishing a Tax Increment Reinvestment Zone, to enhance affordability tools in your area.
For more information:
The following resources provide additional information on Homestead Preservation Districts and Reinvestment Zones and their use in Austin: