What is District Improvement Financing?
District Improvement Financing (DIF) is a new economic development tool that will provide towns and cities with a means to fund needed infrastructure improvements to attract business growth and/or housing development. The District Improvement Financing (DIF) statute passed in July, 2003 (Chapter 40Q of the Massachusetts General Laws and enacted into law as Section 18 of the Acts of 2003), allows a Massachusetts municipality to fund capital improvements using bond financing. The bonds are financed by the future real estate tax increases for an entire district. Choosing to commit to the DIF financing is a local decision. This mechanism does not create a new tax; rather, it is a way to direct and possibly accelerate the natural growth in real estate taxes from the development in a designated area to the payment for needed infrastructure.

The Massachusetts Chapter of NAIOP first drafted the bill in 1994 and spent the last legislative sessions educating the legislature about this highly effective tool. The Mass. Office of Business and Development is now accepting applications from municipalities for this financing.

Fact Sheets and Reports
DIF Overview
Frequently Asked Questions & Answers
DIF Process Flow Chart

Legislation & Application
DIF Statute
DIF Final Regulations
DIF Application

Media Coverage
Eyeing DIF Dollars - Boston Business Journal 8-27-04

Related Links & Agencies
Mass. Office of Business Development

Mass. Department of Housing and Community Development

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