FHWA develop a series of primers to assist practitioners understand and navigate the different aspects of implementing Value Capture Strategies in transportation projects. Value capture is an innovative revenue-generation tool that may be either project specific or programmatic in nature. Project-specific tools include those that are typically applied to specific transportation projects, such as:
- Special assessments, that is, special charges imposed on property close to a new facility. The assessment is levied only against those parcels that receive a special benefit that can be clearly identified and measured.
- Tax increments, that is, the future increment tax revenue (property tax and economic activities) within a development or redevelopment geographically area to finance infrastructure improvements.
- Negotiated exactions, such as in-kind contributions to local roads, parks, or other public facilities, or in-lieu fees, as a condition of development approval.
Joint development, involving the development of a transportation facility and adjacent private property with a private sector partner that is either providing the facility or making a financial contribution to offset its costs. The development that occurs in the vicinity of a transit or highway facility is configured differently than it otherwise would be were the facility not present.
- Split-rate tax, which applies a higher property tax rate on land than on buildings. These taxes capture the general increase in the value of land due to improved accessibility from transportation networks.
- Transportation utility fees, which treat transportation networks like a utility. The fees are similar to other local services, such as water and wastewater treatment, that are financed primarily from user charges. Properties are charged fees in proportion to their network use, rather than according to their monetary value, as in property taxation. The fees are based on the number of trips generated and vary with land use. Transportation utility fees have been used by many cities in Oregon.
Transportation Impact Fees (TIFs) - A Primer: Coming Soon
Special Assessment Districts (SADs) - A Primer: PDF | HTML
Introduction to Special Assessments - A Presentation: PDF | HTML
- SADs are special assessments to property owners within a specifically defined geographic area, which is regarded as the main concentration of beneficiaries of respective publicly funded infrastructure improvement. This Primer provides practical information for implementing special assessments (also known as special assessment districts, benefit assessment districts, community improvement districts, etc.) for State and local departments of transportation and public works agencies as one approach for adding Value Capture to their infrastructure funding strategies. It includes an overview of this technique, processes involved in implementation, as well as real-world examples of when and how it can be used.
Tax Increment Financing (TIF) - A Primer: PDF | HTML
Introduction to Tax Increment Financing - A Presentation: PDF | HTML
Transportation Reinvestment Zones (TRZs) - A Primer: Coming Soon
Transportation Utility Fees (TUFs) - A Primer: PDF | HTML
- TUFs is primarily used by local governments to fund the maintenance of local roads. The fee is paid by property occupants based on land use intensity also knows as street maintenance fee, road use fee, street utility fee. It is distinct from transportation impact fees and mitigation fees since the fee paid is by property occupants rather than developers and paid on an ongoing (monthly) basis for maintenance.
Development Agreements and Other Contract-Based Value Capture Techniques (CDA) - A Primer: PDF | HTML
- The Primer provides practical information for implementing DA, CBA, JDA, and other contract-based VC techniques (such as public right of way [ROW] use agreements) for State departments of transportation and local public agencies to consider implementing Value Capture strategies. It includes overviews of these techniques, processes involved in implementing them, their role in key VC opportunities and challenges, as well as real-world case examples of when and how best they can be used.
Introduction to Development Agreements and Other Contract-Based Value Capture: PDF
Capital Improvement Programming (CIP): A Primer - PDF | HTML
- Capital improvement programing: Using Value Capture to Fund Transportation Capital Improvements is the multi-year scheduling of capital improvements based on available fiscal resources and community desire for specific improvements. The primer provides practical information for local communities that are interested in implementing a capital improvement plan (CIP) and understanding how value capture techniques for transportation funding can assist in this process. More specifically, it provides an overview of the most important elements of a CIP and the capital improvement planning process, with an emphasis on the use of value capture techniques for the transportation component of the CIP.
Making the Business and Economic Case - A Primer: Coming Soon
Risks - A Primer: Coming Soon