Chicago leaders prepare for ‘TIF cliff’ as several city special taxing districts expire

Mayor Brandon Johnson wants to borrow $1.25 billion to build affordable housing, rehab or construct new commercial buildings and issue small business loans across Chicago .

The money will be paid back with property tax dollars being freed up across the city as controversial tax increment financing districts, or TIFs, begin to expire.

The move could have several, sometimes divergent, consequences.

Expiration of expiring TIFs has an upside for other taxing bodies such as the city’s school and park districts.

Both will be able to tap into millions of dollars of potential revenues from this year forward.

CPS and CTU have requested it for years , and their demands have grown louder during their protracted contract battle.

The Jefferson/Roosevelt TIF , for example, has a low socioeconomic need and hadn’t been spending much money on projects in recent years .

With a $52 million balance on its books at the start of 2024 , the planning and development office let it expire.

Some TIFs west of Ogden Avenue are expected to be extended and others in areas where popular restaurants, shops and pricey properties are located will likely expire.