SIDs: A Brief history
The need for SIDs began after World War II, when the demand for housing increased as soldiers returned home…
SID History
The SID model has become a sustainable and effective tool to provide financing for the construction of infrastructure improvements for new residential, commercial, and industrial development.
SIDs use tax-exempt debt instruments for that financing, eventually repaid using the ad valorem real estate taxes of the SID. Due to this structure, the cost of development is lower, which benefits both the developer and the home buyer.
SIDs must be located outside of city limits. This allows cities to control the specifications and scope of improvements without requiring direct investment. In reality, SIDs are a public-private partnership between the developer, city, and county.
