ATTRACTING INFILL DEVELOPMENT IN 

DISTRESSED COMMUNITIES: 30 STRATEGIES

EPA 230-R-15-001 

May 2015

www.epa.gov/smartgrowth

Office of Sustainable Communities

Smart Growth Program

United States

Environmental Protection

Agency
Attracting Infill Development in Distressed Communities: 30 Strategies 

Acknowledgments

The U.S. Environmental Protection Agency (EPA), through its Office of Sustainable Communities, 

managed the preparation of this report. This report has been subjected to the Agency’s peer and 

administrative review and has been approved for publication as an EPA document. Mention of trade 

names or commercial products does not constitute endorsement or recommendation for use.

Renaissance Planning Group developed much of the research, analysis, and case studies underlying this 

report as well as the initial drafts of the report.

Supported by technical assistance from EPA, Mayor of Fresno, California Ashley Swearengin and 

Director of the California Governor’s Office of Planning and Research Ken Alex co-chaired the Fresno 

General Plan Implementation and Infill Development Task Force in 2013. The Task Force identified 

most of the strategies detailed in this report. The Task Force members were some of the brightest and 

most experienced practitioners in California and represented the areas of greenfield and infill 

development, business management, lending, city planning, land use and environmental law, transit 

and high-speed rail development, public finance, tax credit and other real estate development 

finance, and affordable housing. 

Contributors and reviewers:

• EPA Region 9: Scott Stollman

• California Strategic Growth Council: Suzanne Hague

• EPA Office of Sustainable Communities: Geoff Alexander, Matthew Dalbey, Abby Hall, Adhir Kackar, 

and Megan Susman

Cover photo credits:

• Front cover, main photo: Heather Heinks, City of Fresno

• Front cover, bottom left photo: Dan Burden

• Front cover, bottom middle photo: Gretchen Moore

• Front cover, bottom right photo: Mike Bellamente

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Attracting Infill Development in Distressed Communities: 30 Strategies 

Table of Contents

Executive Summary....................................................................................................................................... 1

Introduction .................................................................................................................................................. 5

What Is a Distressed Community? ............................................................................................................ 5

Benefits of Infill ......................................................................................................................................... 5

Benefits of Infill Development in Distressed Communities...................................................................... 7

Challenges to Infill Development in Distressed Communities.................................................................. 8

Fresno: A Case Study to Encourage Infill in a Distressed Community .................................................... 10

How to Use This Report .............................................................................................................................. 13

Strategies to Encourage Infill Development in Distressed Communities................................................... 14

Building a Strong Foundation.................................................................................................................. 15

Priorities .............................................................................................................................................. 16

Policies ................................................................................................................................................ 19

Partnerships........................................................................................................................................ 28

Perception ........................................................................................................................................... 34

Paying for Infill Development and Infrastructure ................................................................................... 38

Funding for Infill Development........................................................................................................... 38

Funding for Infrastructure .................................................................................................................. 45

Appendix A.................................................................................................................................................. 49

Self-Assessment Questions for Strategies .............................................................................................. 49

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Attracting Infill Development in Distressed Communities: 30 Strategies 

Executive Summary

Since post-World War II, many communities in the United States developed outside city and town 

centers, leaving older neighborhoods, traditional downtowns, and central business districts abandoned 

and underserved. In the past two decades, many communities have revitalized their central 

neighborhoods through infill development—development in a built-up neighborhood, often using 

vacant land or rehabilitating existing properties. New development and redevelopment can bring new 

housing choices, amenities, services, and jobs. Other communities, however, have been unable to 

attract infill development and attain the economic, environmental, health, and quality of life benefits 

that accompany it. 

EPA developed this report to help local governments overcome 

obstacles and encourage infill development, particularly in 

distressed communities. Distressed communities have high 

residential vacancy rates, poverty, and unemployment, which 

further compound the many challenges that municipal 

governments face, such as limited financial resources. A 

distressed community could be a city or a neighborhood or 

community in a larger, less-distressed city or town. In distressed 

communities, the market alone cannot spur significant infill 

development, and the public sector often does not have the 

financial resources to invest in improving market conditions. 

Infill development can bring several benefits: 

• Municipalities can save money by promoting development in areas that already have 

infrastructure connected to public services, as opposed to financing new infrastructure for 

greenfield development. 

• Infill development can raise property values in the surrounding neighborhood. 

• It can bring residences and destinations closer together, making it easier for people to walk, 

bike, use transit, or drive shorter distances, which reduces pollution from vehicles. 

• For distressed communities especially, infill development can help stabilize a community by 

attracting a greater diversity of household income levels, bringing new resources to a 

neighborhood and reducing concentrated poverty. 

Distressed communities face challenges in attracting infill development. In neighborhoods where 

vacancy rates are high, private developers cannot generate adequate returns on investment to justify 

the investment risk. Public incentives and investment could make a project attractive, but distressed 

communities usually lack the financial resources to provide them. Even if developers are willing to take 

on the risk of an infill development project in a distressed community, they often face difficulty securing 

financing because lenders see these projects as risky. Finally, if existing infrastructure in an infill site 

requires substantial improvements, developers might not be willing to develop there. 

Infill development occurs in a 

built-up neighborhood, often 

using vacant land or rehabilitating 

existing properties. Infill 

development can bring many 

benefits, including financial 

savings for municipalities, 

increased property values for 

residents and businesses, easier 

travel, reduced pollution, and 

economic stabilization of 

distressed communities. 

Executive Summary 1 
Attracting Infill Development in Distressed Communities: 30 Strategies 

Infill in existing neighborhoods can bring environmental and 

economic benefits to a community, but it can also disrupt life for 

existing residents and businesses, and potentially lead to the 

displacement of existing residents and businesses. It is important 

for local governments to listen to and consider the concerns of 

people living in priority infill areas as they develop policies and 

programs to attract new development and investment into these 

areas. This means giving careful consideration to strategies that 

can help longtime residents and businesses stay in these 

neighborhoods, actively participate in planning for infill, and 

ultimately benefit from new growth. 

Fresno, California, is a useful case study in identifying strategies and tools to attract infill development 

despite serious obstacles. Disinvestment and declining property values across the city’s historic core 

drained public coffers and constrained tax revenues; contributed to a rise in concentrated poverty and 

crime; and detracted from the overall image of Fresno as a good place to live, work, and invest. The 

decline of Fresno’s central business district and central historic neighborhoods after World War II 

coincided with the city’s outward expansion, which consumed a disproportionate share of the city’s new 

growth and investment. In 2011, the White House designated Fresno to participate in the Strong Cities, 

Strong Communities (SC2) initiative, which provides intensive technical assistance and capacity building

to economically distressed cities. Recognizing infill development as key to the city’s goals of revitalizing 

downtown and central neighborhoods, the federal SC2 team in Fresno, led by EPA and the state of 

California, partnered with the city to convene a task force of more than 20 of California’s leading experts 

in development finance, law, public policy, planning, and business. The task force’s work, along with the 

SC2 team’s other experiences in Fresno, informed the strategies in this report. 

Figure 1: Downtown Fresno, California skyline. Infill development helps conserve agricultural lands and open space, like some 

of the nation’s most productive farmland and the foothills of the Sierra Nevada pictured here just outside Downtown Fresno. 

Photo source: Heather Heinks, City of Fresno

Answering the self-assessment 

questions in this report can help 

local governments decide 

whether their community is ready 

to pursue infill development in 

distressed communities. Local 

governments can then use the 

strategies and tools in this report 

to help them do so successfully.

Executive Summary 2 
Attracting Infill Development in Distressed Communities: 30 Strategies 

Strategies to Encourage Infill Development in Distressed Communities 

This report organizes 30 strategies into two main categories: foundation and funding. 

Strategies in the foundation category refer to critical steps a jurisdiction can take to make infill 

development more feasible, such as establishing priorities, policies, and partnerships, and changing 

public perceptions. Strategy 1 calls for local governments to identify specific areas to direct infill 

development to before they dedicate time, energy, and resources to implement other strategies 

described in this report. Strategy 1 lays the foundation for the strategies that follow. 

PRIORITIES

Strategy 1: Identify Priority Infill Development Areas

POLICIES

Strategy 2: Expedite Development Review

Strategy 3: Set Tiered Impact Fees

Strategy 4: Ease Parking Requirements in Infill Locations

Strategy 5: Adopt Flexible Codes

Strategy 6: Provide Clear Rules for Renovating Historic Buildings

Strategy 7: Adopt an Adaptive Reuse Ordinance

Strategy 8: Offer Density Bonuses in Infill Locations

Strategy 9: Put Public Offices in Infill Locations

PARTNERSHIPS

Strategy 10: Seek State and Regional Partners

Strategy 11: Identify Key Anchor Institutions

Strategy 12: Explore Employer-Assisted Housing

Strategy 13: Engage Philanthropic Organizations

Strategy 14: Create a Public Sector-Developer Liaison 

Strategy 15: Create a Local Developer Capacity-Building Program

PERCEPTION

Strategy 16: Strengthen Code Enforcement

Strategy 17: Build Complete Streets

Strategy 18: Create a Business Improvement District

Strategy 19: Hold Public Events and Festivals in Infill Locations

Strategy 20: Initiate a Neighborhood Identity Campaign

Strategies in the funding category include some common and innovative federal, state, and local 

programs and strategies that can fund infill and infrastructure. FOUNDATION 

Executive Summary 3 
Attracting Infill Development in Distressed Communities: 30 Strategies 

FUNDING FOR INFILL

Strategy 21: Enact a Property Tax Abatement Program for Infill Locations

Strategy 22: Implement a Land Banking Program

Strategy 23: Implement a Land Value Tax

Strategy 24: Attract Private Equity

Strategy 25: Encourage Community Development Corporations

Strategy 26: Encourage Crowdfunding for Projects and Businesses in Priority Infill 

Development Areas 

FUNDING FOR INFRASTRUCTURE

Strategy 27: Create a Tax Increment Financing District

Strategy 28: Establish a Capital Reserve Fund

Strategy 29: Create Special Assessment Districts

Strategy 30: Generate Revenue through Naming Rights and Advertising

Appendix A includes self-assessment questions for each strategy to help local governments determine 

which strategies are appropriate for their context. 

Answering the self-assessment questions should help local governments decide whether their 

community is ready to pursue infill development in distressed communities. Local governments can then 

use the strategies and tools in this report to help them do so successfully. FUNDING 

Executive Summary 4 
Attracting Infill Development in Distressed Communities: 30 Strategies 

Introduction

In the latter half of the 20th century, the United States experienced rapid growth on the periphery of its 

urban areas. Over time, many older neighborhoods, traditional downtowns, and central business 

districts were abandoned and today struggle to attract investment. Yet over the last several decades, 

many of these central areas have been revitalized as local governments recognized the importance of 

revitalizing their core neighborhoods to achieve more robust economic development as well as to raise 

the quality of life for their residents. 

Development of vacant or underutilized land in previously developed areas, known as infill 

development, has helped bring life back to these areas. Infill development can bring new homes, jobs, 

services, and amenities to neighborhoods while using previous public investments more efficiently. But 

many communities are still waiting for revitalization to reach their older neighborhoods and 

downtowns. They often have distressed economies and real estate markets that left them with neither 

the demand nor the means to develop in these areas. This report describes several strategies that 

distressed communities can use to catalyze infill development. 

What Is a Distressed Community?

In this report, the phrase “distressed community” refers to a place with the following challenges: 

• High rates of unemployment and poverty compared to regional, state, or national averages.

• A low-skilled workforce or low rates of educational attainment compared to state and national 

averages. 

• High residential vacancy rates or weak real estate markets.

• Severely constrained fiscal resources at the municipal level and limited infrastructure finance 

tools, such as bonding capacity, to pay for the basic services and functions of municipal 

government. 

In distressed communities, the market might not be strong enough to spur significant infill development, 

or the public sector might not be able to fund the infrastructure that could help make the market more 

attractive. A distressed community can be an entire city or a sub-market in a larger, less-distressed area. 

This report contains strategies that can be useful to communities of any size, but it is most useful for

communities where the municipal government has few resources to support infill development. 

Benefits of Infill

Local governments are promoting infill development for a variety of reasons related to the economy, 

environment, equity, and quality of life. 

• Infill development makes good fiscal sense. Developers can typically use existing infrastructure 

to serve their projects, which is more efficient than extending infrastructure to undeveloped 

greenfields and incurring long-term maintenance liabilities. Studies also demonstrate that 

policies allowing more compact, mixed-use development could raise property values and 

Introduction 5 
Attracting Infill Development in Distressed Communities: 30 Strategies 

generate more property tax revenue per acre than developing on the periphery, which typically 

less compact.

1 Aligning public investments and incentives to encourage infill can also help 

distressed communities capture more market share of their region’s private investment in 

development. This benefit is especially important in the wake of the 2007-2009 national 

recession, which caused some cities to more closely examine the costs and benefits of 

continued greenfield development compared to infill development. 

• Infill development can bring environmental and quality of life benefits. For example, research 

shows that infill development can reduce driving—and associated greenhouse gas emissions and 

other pollution—by bringing houses closer to daily destinations.

2

 Closer proximity makes it 

easier for people to walk, bike, use transit, or drive shorter distances. 

• Investing in established neighborhoods and downtowns can help stabilize neighborhoods that 

have long struggled with the social problems resulting from concentrated poverty. Concentrated 

poverty can contribute to depressed property values, which in turn can reduce property tax 

revenues in distressed neighborhoods. Infill can attract new investment that results in a more 

balanced mix of incomes within a neighborhood. This, in turn, can attract more businesses and 

amenities, increase the tax base, and help stabilize schools.

• Infill development responds to the nation’s changing demographics and market preferences 

by providing more housing choices. Greenfield development3 dominated the real estate 

market for several decades. While suburban locations and lifestyles are still attractive to many 

people and are part of a complete spectrum of housing choices, demand for housing, 

employment, and retail in city centers and historic downtowns is on the rise. Real estate 

surveys indicate a growing interest for more diverse housing options in vibrant, walkable 

neighborhoods where residents do not need to drive everywhere.

4 U.S. Census data indicate 

that these changing preferences are affecting settlement patterns. For example, between 

2010 and 2011, the nation’s major cities grew faster than their combined suburbs for the first 

time since the 1920s.5

 A 2011 survey from Builder Magazine indicated that more than half of 

people who had recently bought a home wanted to live closer to where they worked and 

closer to downtown, and would accept a smaller yard in exchange for more parks and public 

amenities.6 The 2013 National Association of Realtors Community Preference Survey found 

that 60 percent of respondents prefer a neighborhood with a mix of homes and businesses 

within walking distance, instead of communities that require driving between home, work, 

1 Minicozzi, Joe. “Thinking Differently About Development.” Government Finance Review. Government Finance Officers Association. 

Aug. 2013. 

2 Ewing, Reid, and Robert Cervero. “Travel and the Built Environment.” Journal of the American Planning Association 76 (3). 2010. 3 Greenfield development refers to development on previously undeveloped (“green”) parcels in suburban or non-urban locations with 

limited existing infrastructure and development. (http://www.epa.gov/smartgrowth/pdf/infill_greenfield.pdf) 4 Urban Land Institute. What’s Next? Real Estate in the New Economy. 2011. http://www.uli.org/wpcontent/uploads/2012/06/WhatsNext1.pdf. 5 Frey, William H. “Demographic Reversal: Cities Thrive, Suburbs Sputter.” Brookings Institution. Jun. 29, 2012. 

http://www.brookings.edu/research/opinions/2012/06/29-cities-suburbs-frey. 6 Warrick, Brooke. “Builder Home Buyer Study 2011.” Builder Magazine. 2011. 

Introduction 6 

 
Attracting Infill Development in Distressed Communities: 30 Strategies 

and recreation.7 Demographic shifts are also influencing demand for housing in infill locations 

as aging baby boomers seek smaller homes with less upkeep, the Millennial generation starts 

new households and prefers mixed-use neighborhoods with transportation options, and the 

number of single-person households increases.8

Many cities and towns now desire the benefits of infill development, and they are finding willing 

developer partners, especially in strong real estate markets. Developers can earn a high return on 

investment because they can generally build more on a smaller footprint than in greenfield 

development. However, many distressed cities are competing with jurisdictions with suburban and 

exurban sites that might offer developers lower upfront infrastructure costs. If infrastructure upgrades 

are needed in infill areas and infrastructure costs are subsidized in greenfield areas, the competition for 

private development investment can be an uneven playing field. It is critical to ensure that regional 

infrastructure investment decisions consider full and complete costs, including the long-term 

replacement costs that will someday be needed for new infrastructure. Infill development can increase 

costs because developers may have to repair or upgrade aging infrastructure that already exists, but in 

other circumstances where existing infrastructure is in good condition, infill can help reduce 

construction costs. Distressed communities typically have fewer interested developers due to weak real 

estate demand, aging or neglected infrastructure that imposes additional investment risks and costs, 

and small and/or irregular parcel sizes. 

Benefits of Infill Development in Distressed Communities

Some of infill’s benefits are especially important for distressed communities, which see infill as a way to 

relieve fiscal stress and retain younger adults by providing a wider array of housing options. Distressed 

communities can achieve these additional benefits: 

• Compared to greenfield development, infill development reduces the need to extend 

infrastructure and add services, which can reduce capital costs for a municipality in the near 

term and maintenance costs in the long term.9

 

• Compact infill development with a mix of uses yields more property tax revenue per acre than 

spread-out, single-use greenfield development. 10

• Infill development can help stabilize impoverished or abandoned areas by introducing a more 

diverse mix of households at different income levels. 

• Infill development provides more choices to meet changing consumer preferences driven by 

demographic shifts. 11 

7 National Association of Realtors 2013 Community Preference Survey, http://www.realtor.org/reports/nar-2013-communitypreference-survey. 8 EPA. Smart Growth and Economic Success: Investing in Infill Development. 2014. http://www2.epa.gov/smart-growth/smartgrowth-and-economic-success-investing-infill-development. 9 Burchell, Robert. W., et al. The Costs of Sprawl—Revisited. Transportation Research Board. 1998. 10 Langdon, Philip. “Best Bet for Tax Revenue: Mixed-use Downtown Development.” New Urban News. Sep. 13, 2010. 

http://bettercities.net/article/best-bet-tax-revenue-mixed-use-downtown-development-13144. 11 Warrick 2011. 

Introduction 7 

 
Attracting Infill Development in Distressed Communities: 30 Strategies 

Figure 2: Infill development is compact development, which helps reduce driving, promotes walking, and typically consumes less land.

Photo source: Mike Bellamente

Challenges to Infill Development in Distressed Communities

Distressed communities face several obstacles to attracting more infill. Weak market demand for real 

estate, resulting in low prices and rents, is common. As a result, infill development is not financially 

feasible without public incentives or investments in infrastructure improvements. Some common 

market challenges are:

• Market dilemma: Sometimes, a private developer simply cannot generate adequate returns on 

its investment to justify the risks and challenges. As a result, the local government must

intervene with an investment or incentive to make the project attractive. Unless an incentive is 

available, the market for infill could struggle to reach a “tipping point” where incentives are no 

longer needed. Most distressed communities cannot afford to make the needed investments, 

but nor can they wait for sufficient market demand.

• Risk gap: Developers that are willing to take on the additional risk and invest in an infill project 

could find it difficult to secure financing. Lending institutions are risk averse and might shun 

infill projects because they are perceived as higher risk than similar projects in more affluent 

areas. Once again, the local government might find that it needs to provide incentives to an 

infill project or invest directly in the project to close the financing gap between what the lender 

is willing to provide and other private investment.

Introduction 8 
Attracting Infill Development in Distressed Communities: 30 Strategies 

• Greenfield-infill relationship: A regional market can absorb only so much growth. The growth 

might happen in greenfield areas, infill areas, or most likely, some combination of the two. 

Development in greenfield locations can absorb market demand that could have gone to infill 

areas, such as downtowns or established neighborhoods. Therefore, market demand for infill 

development can be influenced by a region’s balance of greenfield and infill development. 

• Infrastructure condition: Developers are wary of building in areas where they might need to 

make expensive infrastructure improvements. As the cost of replacing infrastructure increases 

building costs, developers might not be able to get high enough rents or sale prices to recoup 

their investment.

Common public-sector responses to these challenges include funding infrastructure improvements, 

acquiring and selling property for redevelopment, and offering financial incentives that require 

significant public funds. Yet in distressed communities, these strategies can be out of reach because the 

public sector cannot afford to make major investments. For example, many distressed communities lack 

access to capital markets and, as a result, can have long-term public finance constraints that prevent 

them from paying for needed infrastructure upgrades, improving public spaces, and cleaning up 

abandoned properties or brownfields.

12

Local governments might not know how to use different tools or funding resources that could remedy 

the market and infrastructure challenges. For example, federal and state governments have funding 

programs that can help close the gap between the cost to build and feasible rents and sale prices. 

However, these programs are often complex, and funding typically goes to experienced applicants. Local 

developers and government staff might not have this experience. 

Public perception also affects the market for infill development in distressed communities. A city might 

have lost a major employer and could face high unemployment and outmigration as a result. If infill 

locations have been neglected or abandoned for a long time, it could be difficult to imagine new growth 

or activity in these areas or to envision why these areas would be attractive. These perception issues can 

affect the local government’s ability to secure financing and could further dampen interest from 

developers and retailers. 

These challenges affect both supply and demand for infill development. On the supply side, distressed 

communities need developers that are willing and able to produce homes, shops, and office space in 

infill locations. Enticing these developers might require the public sector to help fill near-term financing 

gaps, assemble parcels, clean up a contaminated site, improve nearby amenities such as parks and 

streetscapes, or otherwise make infill more attractive. On the demand side, distressed communities 

need people and businesses that want to rent or buy space. Demand is affected by many factors, but 

local demographics, the economy, income levels, and public perception play important roles. The public 

12 EPA defines a brownfield site as “real property, the expansion, redevelopment, or reuse of which may be complicated by the presence 

or potential presence of a hazardous substance, pollutant, or contaminant.” For more information on brownfields, see: EPA Brownfields 

and Land Revitalization. Basic Information. http://www.epa.gov/brownfields/basic_info.htm#plan. Accessed Dec. 3, 2014. 

Introduction 9 

 
Attracting Infill Development in Distressed Communities: 30 Strategies 

sector and other committed partners can help increase demand in several ways, such as improving 

public perception, helping to recruit anchor businesses, and creating location-based incentives for 

prospective investors and buyers. Distressed communities will need to consider all of these factors as 

they craft approaches to increase both the supply of and demand for infill development. 

Equitable Development and Meaningful Community Engagement

This report is focused on strategies that local governments can use to make infill development as viable and 

attractive as greenfield development. Policies that encourage redevelopment and infill in existing 

neighborhoods can bring environmental and economic benefits to a region, but they can also disrupt life for 

existing residents and businesses. It is important for local governments to listen to and consider the 

concerns of people living in priority infill areas as they develop policies and programs to attract new 

development and investment into these areas. This means giving careful consideration to strategies that 

can help longtime residents and businesses stay in these neighborhoods, actively participate in planning for 

infill, and ultimately benefit from new growth. 

Involving residents and stakeholders in decisions about infill and development can help ensure that 

reinvestment is informed and improved by a variety of perspectives, and that it brings the amenities that 

resident’s need and desire, and increases the likelihood that new development will bring fair access to new 

opportunities. Meaningful public engagement and involvement can also build long lasting support for infill 

from a broad range of constituents. For developers, this can lead to more predictable development 

processes and reduce costly delays caused by community opposition. EPA’s Office of Environmental Justice 

and Office of Sustainable Communities have developed an informational publication that brings together 

smart growth, environmental justice, and equitable development principles and that community-based 

organizations, local and regional decision makers, developers, and others can use to build healthy, 

sustainable, and inclusive communities. The document, entitled “Creating Equitable, Healthy, and 

Sustainable Communities: Strategies for Advancing Smart Growth, Environmental Justice, and Equitable 

Development,” aims to build on past successes and offers low-income, minority, tribal, and overburdened 

communities approaches to shape development that responds to their needs and reflects their values. The 

publication provides a brief introduction to a range of different strategies that communities have 

successfully used to improve development outcomes in their neighborhoods. 

For more information on equitable development and other strategies to accompany infill, visit: 

http://www.epa.gov/smartgrowth/pdf/equitable-dev/equitable-development-report-508-011713b.pdf. 

Fresno: A Case Study to Encourage Infill in a Distressed Community 

Fresno, California, is an instructive case study for identifying and implementing strategies to foster infill 

development in distressed communities. Fresno is the fifth-largest city in California, located in the heart 

of one of the most productive agricultural regions in the world. The city faces severe economic and fiscal 

challenges, which were compounded by the economic recession. Disinvestment and declining property 

values across acres of the historic city core drained public coffers and constrained tax revenues; 

contributed to a rise of concentrated poverty and crime; and diminished Fresno’s overall image as a 

good place to live, work, and invest. Moreover, the city has some of the worst air quality in the nation, 

making transportation options that could reduce driving a key strategy to help reduce air pollution. 

Introduction 10
Attracting Infill Development in Distressed Communities: 30 Strategies 

Fresno’s steady population growth over several decades dramatically expanded the region’s footprint, but

not all parts of the city have shared in the benefits of this growth. As in many distressed communities, 

Fresno’s central business district and historic neighborhoods have been in decline for several decades

as new growth and investment were focused more heavily on areas of outward expansion. 

Figure 3: Fresno General Plan Update. This map shows post-1945 growth (red) and pre-1946 growth (blue).

Image source: City of Fresno

The city studied several different growth scenarios for its 2035 general plan update and found that 

increasing infill development would likely increase tax revenue and reduce infrastructure and service 

costs in the long term.13 The city also views infill development as a tool to help solve several other 

problems, including:

• Steady outward growth of the city’s footprint, which is placing stress on infrastructure and 

municipal services. 

• High vacancy rates in historic downtown office buildings. 

• Neighborhoods that suffer from some of the nation’s highest levels of concentrated poverty. 

• A workforce challenged by high unemployment and low educational attainment. 

• A trend of educated young adults leaving the region for job opportunities elsewhere. 

• Perception of poor safety and school quality in many older neighborhoods and the downtown.

13 Moody, Jason. Fiscal Impact Analysis of the General Plan Implementation. Economic and Planning Systems. 2014.

Introduction 11

 
Attracting Infill Development in Distressed Communities: 30 Strategies 

Fresno’s efforts to attract infill development have faced several obstacles common in distressed 

communities. First, fiscal constraints made it difficult for the city to replace and expand aging water, 

sewer, drainage, and street infrastructure in older neighborhoods and downtown. Some of the areas 

where Fresno would like to encourage infill development also suffer from poor public perception. 

Meanwhile, Fresno’s residents are accustomed to living in places where they have to drive everywhere,

as a result of decades of outward growth into inexpensive farmland. For example, 50 percent of all land 

developed between 1990 and 2000 in the Fresno region was considered high-quality farmland.14 The 

combination of fiscal, perception, and market forces make Fresno a good city in which to test strategies 

to promote infill development.

In 2011, the White House designated Fresno as one of seven cities to participate in the Strong Cities, 

Strong Communities (SC2)15 initiative, which provides intensive technical assistance and capacity building 

to economically distressed cities. SC2 helps cities achieve locally-driven economic development and 

revitalization goals through sustained collaboration with teams of federal government staff from different 

agencies. Recognizing infill development as a key component to the city’s goals of downtown 

revitalization, EPA and the state of California partnered with the city to convene a task force of more than 

20 of California’s leading experts in development finance, law, public policy, planning, and business. The 

task force’s charge was to identify solutions that were feasible in Fresno’s challenging economic and fiscal 

environment, as opposed to strategies that would work only in strong markets or where more public funds 

are available to support new development.

The task force met three times in 2013. Its first meeting focused on the challenges to infill development 

and included a discussion of the city’s economy and potential future drivers of demand for infill 

development. The second meeting helped the city identify specific areas where infill development could 

work in the near term and where public infrastructure investments could catalyze development. During 

the final meeting, task force members evaluated the merits of specific infill development strategies. The 

task force’s recommendations for Fresno were compiled in a report16 and form the basis of many of this 

report’s strategies for fostering infill in distressed communities. While creating a task force of 

development experts is not a strategy in this report, Fresno benefited substantially from this outside 

perspective and expertise. The city also benefited from including state agency representatives in the 

task force to further explore how the city’s infill efforts could align with other regional and state goals. 

Other distressed communities could benefit from the same approach. 

14 American Farmland Trust. “Fresno County Comparison of Plans & Performance.” 

http://www.farmland.org/programs/states/futureisnow/m_fresno.asp. Accessed Jul. 9, 2014. 15 For more information on SC2, see: U.S. Department of Housing and Urban Development (HUD). “Strong Cities, Strong Communities 

Initiative (SC2).” http://www.huduser.org/portal/sc2/home.html. Accessed Jun. 4, 2014. 16 The Fresno-specific infill development report is not publicly available; however, many recommendations of the report appear in the 

Implementation chapter of Fresno’s 2035 General Plan Update. http://www.fresno.gov/NR/rdonlyres/FCF88C7F-4C08-4E04-9ECCE97091958D02/0/GPFinal12ImplementationJan202015.pdf. 

Introduction 12
Attracting Infill Development in Distressed Communities: 30 Strategies 

How to Use This Report

While there are many success stories of infill and neighborhood redevelopment across the country from 

economically thriving regions, this report discusses strategies specifically geared toward helping

distressed communities better position themselves to attract infill development. 

These strategies are organized into two main categories: 

• Foundation includes strategies related to the priorities, policies, partnerships, and perceptions 

that create an environment that supports infill development. These strategies help reduce the 

cost to developers to build new infill projects. They also create markets for infill through public, 

private, and philanthropic investments and action and increase the visibility and familiarity of 

existing neighborhoods and infill locations as viable locations for development. 

Priorities

Partnerships 

Perception Policy Infill 

• Funding includes strategies to help finance the replacement of aging infrastructure and other 

aspects of infill projects. These strategies will be most effective if they are accompanied by a 

public involvement and community outreach process that engages existing residents in the land 

use and development decision-making process. Authentic engagement can help to ensure that 

strategies are used in ways that make it easier and less costly for developers to build infill 

projects, and increase the likelihood that infill projects deliver benefits for both existing and new 

neighborhood residents. 

Appendix A includes self-assessment questions that communities can use to determine if a strategy is 

appropriate for their context. 

How to Use this Report 13
Attracting Infill Development in Distressed Communities: 30 Strategies 

Strategies to Encourage Infill Development in Distressed Communities

Developed using the Fresno task force work and experiences in other communities nationwide, these 30 

strategies can help distressed communities that want infill development. 

PRIORITIES

Strategy 1: Identify Priority Infill Development Areas

POLICIES

Strategy 2: Expedite Development Review

Strategy 3: Set Tiered Impact Fees

Strategy 4: Ease Parking Requirements in Infill Locations

Strategy 5: Adopt Flexible Codes

Strategy 6: Provide Clear Rules for Renovating Historic Buildings

Strategy 7: Adopt an Adaptive Reuse Ordinance

Strategy 8: Offer Density Bonuses in Infill Locations

Strategy 9: Put Public Offices in Infill Locations

PARTNERSHIPS

Strategy 10: Seek State and Regional Partners

Strategy 11: Identify Key Anchor Institutions

Strategy 12: Explore Employer-Assisted Housing

Strategy 13: Engage Philanthropic Organizations

Strategy 14: Create a Public Sector-Developer Liaison 

Strategy 15: Create a Local Developer Capacity-Building Program

PERCEPTION

Strategy 16: Strengthen Code Enforcement

Strategy 17: Build Complete Streets

Strategy 18: Create a Business Improvement District

Strategy 19: Hold Public Events and Festivals in Infill Locations

Strategy 20: Initiate a Neighborhood Identity Campaign

FUNDING FOR INFILL

Strategy 21: Enact a Property Tax Abatement Program for Infill Locations

Strategy 22: Implement a Land Banking Program

Strategy 23: Implement a Land Value Tax

Strategy 24: Attract Private Equity

Strategy 25: Encourage Community Development Corporations

Strategy 26: Encourage Crowdfunding for Projects and Businesses in Priority Infill 

Development Areas 

FUNDING FOR INFRASTRUCTURE

Strategy 27: Create a Tax Increment Financing District

Strategy 28: Establish a Capital Reserve Fund

Strategy 29: Create Special Assessment Districts

Strategy 30: Generate Revenue through Naming Rights and Advertising

FOUNDATION FUNDING 

Strategies to Encourage Infill Development in Distressed Communities 14
Attracting Infill Development in Distressed Communities: 30 Strategies 

The first set of strategies can help establish a strong foundation for infill development. These strategies 

include setting priorities, setting policy, developing partnerships, or changing public perceptions. The 

second set of strategies includes some common and innovative funding strategies. The description of 

each strategy includes basic information:

• What is the strategy?

• Why is the strategy important? 

• How does the strategy work, and how can it be applied?

Appendix A includes a self-assessment for each strategy with questions that can help a community

determine whether the strategy is appropriate for its context. While the questions are mostly meant for

local government staff and officials, private developers and other stakeholders can also use the 

assessment questions to help determine how they can be stronger partners in attracting infill 

development. Implementing these strategies typically requires partnerships among government, private 

developers, and community organizations. The self-assessment could be a good technique to bring 

these parties together to jointly identify the most viable strategies for the community. 

Building a Strong Foundation 

To make infill development more feasible, local governments need to create a strong foundation that 

establishes priorities, policies, and partnerships, and changes public perceptions. Applying a 

combination of these strategies can increase both the supply of and demand for infill development.

• The priorities strategy helps focus public investment by targeting specific areas. 

• The policies strategies help local governments adopt new policies or amend existing ones to 

remove obstacles to infill development such as high costs and low market demand. 

• The partnerships strategies help leverage resources, build capacity, and coordinate efforts. 

• The perception strategies can rectify negative perceptions of an area, which can strengthen 

demand and reduce the perceived risk for lending institutions. 

Strategies to Encourage Infill Development in Distressed Communities 15
Attracting Infill Development in Distressed Communities: 30 Strategies 

Priorities

STRATEGY 1: IDENTIFY PRIORITY INFILL DEVELOPMENT AREAS PRIORITIES

What? Local governments should identify specific priority infill development areas before they 

dedicate time, energy, and resources to implement other strategies described in this report. 

It is critical that local governments involve existing residents in these decisions. This strategy 

lays the foundation for the strategies that follow.

Why? Concentrating investment in priority areas is more likely to produce the highest return on 

investment—either financially or in terms of visibility and catalyzing private investment—

than spreading limited resources thinly across the community. Focusing on a small area 

yields a cumulative effect that could send positive messages to the public and investors. For 

example, one block with three new storefronts or nighttime establishments has a greater 

impact on perception compared to the same three new establishments spread among five 

blocks. In addition, often the sheer scale of existing developed or underdeveloped land in 

need of reinvestment, coupled with significant fiscal constraints, dictate that near-term 

actions focus on smaller geographic areas. These areas could have the best development 

potential, and targeted public and private investments could signal to the marketplace that 

something positive is happening. This, in turn, could strengthen market perceptions and 

foster further private investment. 

Figure 4: The city of Fresno, California's priority infill development areas.

Image source: Renaissance Planning Group

Strategies to Encourage Infill Development in Distressed Communities 16
Attracting Infill Development in Distressed Communities: 30 Strategies 

STRATEGY 1: IDENTIFY PRIORITY INFILL DEVELOPMENT AREAS PRIORITIES

How? To identify priority infill development areas, a community needs a vision for where and 

how it would like to grow and the change it would like to see. Some communities broadly 

identify priority development areas and priority preservation areas. Public involvement is 

critical to the success of this strategy. The local government can make more informed 

and equitable decisions by involving existing residents, business owners, and community 

groups early in the process of identifying these areas. Authentic, meaningful, and 

sustained community engagement is particularly important in distressed communities, 

where existing residents may be hesitant or unable to be actively involved in the 

decision- making process because of cultural, linguistic, or other barriers. Linguistic 

barriers can be addressed through multi-lingual outreach. Common public involvements 

techniques include community meetings, charrettes, social media, and focus groups. 

These techniques allow these groups to voice their concerns about problems that may 

arise due to infill development, such as loss of affordable housing and displacement of 

existing residents. This knowledge allows local governments to craft more effective and 

targeted policies.

In addition to public involvement, there are several ways a local government can identify 

priority infill areas. Some key considerations are presented in Table A-1 in the Appendix. 

For example, the local government can look for areas that are already attracting growth; 

areas with higher than average property values, which indicates higher demand; areas 

with sufficient infrastructure to support new growth without requiring large investments; 

or areas where other public investments are already being made.

Several funding resources for making these improvements are described later in this 

report. However, communities also have several existing streams, such as Community 

Development Block Grants (CDBG) and other formula funds that can be directed to 

priority areas. For example, Richmond, Virginia, refocused existing community 

development funds to improve distressed neighborhoods.

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Attracting Infill Development in Distressed Communities: 30 Strategies 

Case Study: Targeting Investment with the Neighborhoods in Bloom Program, Richmond, Virginia

Richmond’s Neighborhoods in Bloom program directs local, federal, and nonprofit funds to distressed 

neighborhoods that are most likely to leverage private investment. The Federal Reserve Bank of Richmond 

summarized the program’s approach to revitalizing neighborhoods, which runs counter to how most local 

governments invest their community development funds: “Typically, cities satisfy federal eligibility 

requirements by targeting HOME [U.S. Department of Housing and Urban Development’s HOME Investment 

Partnerships Program] funds to low-income individuals and CDBG [Community Development Block Grant] 

funds to low- to moderate-income districts. In practice, this means that cities spread CDBG and HOME funds 

somewhat thinly among many low-income neighborhoods, responding as much to political pressures from 

these neighborhoods as to low-income needs. An unfortunate result of this practice is that the critical mass of 

public investment that may be needed to stimulate self-sustaining private market activity in a neighborhood 

may never be achieved.”

Richmond applied its targeted investment approach starting in the late 1990s. The city invested about 80 

percent of its federal housing funds in six- to 12-block sections of six neighborhoods. Richmond also directed 

many of its own capital improvement resources to these areas, and the Local Initiatives Support Corporation 

(LISC) aligned many of its investments with the city’s strategy. Richmond obtained political support for the 

strategy by working closely with community groups, elected officials, and community development 

corporations to select the targeted areas. Richmond also used data on neighborhood condition criteria and 

revitalization potential to inform its selections. The neighborhood condition criteria included vacancy rates, 

crime, poverty level, homeownership rate, and housing quality. Revitalization criteria included the strength of 

civic organizations in the neighborhood, the existence of redevelopment plans, and market trends.

After selecting the neighborhoods, Richmond worked with nonprofit partners to buy vacant houses and lots, 

rehabilitate old houses, build new houses, provide down payment assistance and counseling to homebuyers, 

and help owners with maintenance. The city also stepped up code enforcement and increased police patrols in 

the areas. Five years after the program started, the Federal Reserve Bank Study found evidence that it had a 

positive effect on home prices in the targeted neighborhoods. Housing prices grew 10 percent faster in the 

target neighborhoods than citywide, indicating higher market demand. The program was also cost effective. 

The study’s authors noted that the increase in property tax revenue from the neighborhood would pay for the 

program’s investments within 20 years. 

As a result of the program’s success, the American Planning Association and HUD selected Neighborhoods in 

Bloom as the 2006 recipient of its Opportunity and Empowerment Award. Each year, this award goes to one 

project nationally that improves quality of life for low- and moderate-income community residents. Richmond 

cut the program’s funding during the 2007-2009 recession as the real estate market cooled and smaller 

developers lost access to credit. However, the program demonstrated its value during the more favorable 

market conditions, and the city continues to fund it, albeit at a lower level that reflects the weaker housing 

market since the recession.

Sources: Accordino, John, George Galster, and Peter Tatian. The Impacts of Targeted Public Investment and Non-Profit 

Investment on Neighborhood Development. Federal Reserve Bank of Richmond. Jul. 2005; Adesanya, Ireti. “Carver 

Revitalization Efforts Cut Short.” Richmond.com. December 26, 2013. http://www.richmond.com/citylife/article_db71ecc8-6904-11e3-829a-001a4bcf6878.html. Accessed Dec. 16, 2014; American Planning Association. 

“Richmond Revitalization Program Receives HUD Award.” https://www.planning.org/newsreleases/2006/apr25.htm. 

Accessed Dec. 16, 2014; and City of Richmond. “Neighborhoods in Bloom.” http://www.richmondgov.com/neighborhoods. 

Accessed Dec. 16, 2014.

Strategies to Encourage Infill Development in Distressed Communities 18
Attracting Infill Development in Distressed Communities: 30 Strategies 

Figure 5: Communities like Richmond, Virginia have concentrated investment in priority areas to produce higher returns on 

investment—either financially or in terms of visibility and catalyzing private investment.

Photo source: Ron Cogswell, Flickr

Policies

STRATEGY 2: EXPEDITE DEVELOPMENT REVIEW POLICIES

What? Development review is an important tool for ensuring development proposals are consistent 

with a local government’s policies and codes. Local governments often set time limits on 

each step of their review process. Steps could include a preliminary meeting between the 

developer and local government staff, plan review, and a public hearing. A local government 

could use expedited development review to shorten the period in which it promises to take 

action on qualified proposals.

Why? Reducing the time for the local government’s review process can help developers save 

money because the project takes less time to complete. 

Strategies to Encourage Infill Development in Distressed Communities 19
Attracting Infill Development in Distressed Communities: 30 Strategies 

STRATEGY 2: EXPEDITE DEVELOPMENT REVIEW POLICIES

How? To use this strategy, the local government must decide what kind of projects it would like to 

encourage and where it wants them (see Strategy 1). Then, it can develop criteria to 

determine which projects qualify for expedited review. Criteria might include the amount of 

new housing or retail, density, or floor area ratios. The local government should market this 

incentive to prospective developers. 

San Diego, California, uses expedited permit review to encourage infill development through 

its Affordable/In-Fill Housing and Sustainable Building Expedite Program. Through the 

program, San Diego expedites the development review process for projects that increase the 

city’s affordable housing stock or for infill projects that provide more affordable housing 

units than they replace. The city’s policies for expediting permit review are in City Council 

Policy #600-27.17

STRATEGY 3: SET TIERED IMPACT FEES POLICIES

What? Local governments charge impact fees to developers to offset the cost of new capital 

facilities and services for the development. Some local governments set different fee levels 

based on factors such as distance from existing infrastructure or services and the scale and 

type of development. Using a tiered approach allows a local government to better align the 

fees with the anticipated impacts. For instance, the fee might be lower for development 

closer to the community’s center, where infrastructure is already in place. Some local 

governments have applied the same logic to charge lower fees for smaller new homes, 

where the anticipated impacts per household could be lower. Another creative approach is 

to revise transportation impact fees for new development if the development is in an area 

where people can easily walk, bike, or take transit, which is often the case in infill locations.

Why? Uniform impact fees throughout a community ignore differences in the cost to the public 

sector of providing public services in greenfield versus infill locations. As discussed in the 

introduction to this report, infill development typically saves money over greenfield 

development because it reuses existing infrastructure such as streets and water and sewer 

lines and public service capacity such as police and fire protection. However, infill developers 

often need to upgrade the existing infrastructure in addition to paying impact fees, adding to 

the cost of infill development. As with expedited development review, reducing impact fees 

for infill areas can make development in those areas more financially feasible. 

How? Communities should first study how the cost of providing services varies by location. This 

information can be the basis for a tiered impact fee structure in which infill development 

pays lower impact fees than greenfield development. 

17 City of San Diego, Development Services Department. “Incentive Programs: Sustainable Building Expedite Program.” 

http://www.sandiego.gov/development-services/news/archive/ah.shtml. Accessed Dec. 1, 2014. 

Strategies to Encourage Infill Development in Distressed Communities 20

 
Attracting Infill Development in Distressed Communities: 30 Strategies 

Figure 6: City Walk Apartments near Downtown Charlottesville, Virginia. Parking requirements typically assume suburban 

conditions where people expect abundant free parking, which are difficult – if not impossible – to meet for many infill projects.

Photo source: Renaissance Planning Group

STRATEGY 4: EASE PARKING REQUIREMENTS IN INFILL LOCATIONS POLICIES

What? Local governments often have minimum parking requirements in their zoning or 

development codes based on the square footage or number of housing units in a 

development. Some local governments have reduced these standards or switched to 

maximum parking requirements in areas where they want to encourage infill development.

Why? Often, communities set minimum parking requirements based on assumptions for areas with 

spread-out, automobile-oriented development patterns. These standards can require more 

parking than is needed in more developed areas such as a downtown, where people can park 

once and visit multiple destinations or can arrive on foot, by bike, or on public transit. 

Reducing parking requirements for infill development reduces the cost to developers by 

alleviating the need to build new parking and freeing up developable land for homes, offices, 

and other uses that generate a higher economic return. Construction costs can range from 

$3,000 for a parking space in a suburban surface parking lot to $35,000 for an underground 

Strategies to Encourage Infill Development in Distressed Communities 21
Attracting Infill Development in Distressed Communities: 30 Strategies 

STRATEGY 4: EASE PARKING REQUIREMENTS IN INFILL LOCATIONS POLICIES

space in a central business district. These estimates do not include the cost of land or 

operations and maintenance, which can significantly increase these estimates.18

How? First, a local government should assess its existing supply of parking in infill areas, as well as 

current and projected demand. If the local government finds a surplus of parking, it could be 

in a good position to reduce parking requirements for new development. However, in some 

places, residents and businesses expect dedicated parking even in downtown areas. Lenders 

might also require a certain amount of parking. In these instances, the local government 

might be able to satisfy market or lender demands through other strategies,19 20 such as:

• Shared parking between adjacent or nearby properties with different peak demand 

times. For example, an office building might share garage parking with an apartment 

building because office workers generally park during the day and residents at night.

• A district approach where permit holders can park in any public space.

• Parking cash-out, which allows employees to exchange the dedicated parking space 

offered by their employer for cash. The employee typically agrees to walk, bike, or 

use transit instead of driving. 

Expanding other choices such as transit or car sharing. Car-sharing services allow members 

to rent vehicles for short periods without needing insurance. Car sharing works well in 

compact areas where people can reach most daily necessities by walking or transit but 

occasionally need a vehicle for errands or longer trips. Car sharing makes it easier for people 

to own fewer cars or even go without a car, thereby reducing parking demand. 

STRATEGY 5: ADOPT FLEXIBLE CODES POLICIES

What? In this report, “flexible codes” refers to building, zoning, and other development regulations 

that give developers more discretion to build a project that responds to current and 

changing economic conditions while still meeting local standards for safety and design. 

Some types of flexible codes include mixed-use zones, historic preservation and adaptive 

reuse districts, form-based codes21, or expedited zoning review procedures for reuse of 

existing buildings. 

Why? Codes that specify only exterior form and allow a broad range of uses can allow developers 

to respond to market demand for different uses. If demand increases for one use in the 

future, flexible zoning and building codes allow owners to change a building’s use with 

18 Victoria Transport Policy Institute. “Parking Solutions: A Comprehensive Menu of Solutions to Parking Problems.” 

http://www.vtpi.org/tdm/tdm72.htm. Accessed Dec. 1, 2014. 19 For more information on these and other strategies, see: EPA. Parking Spaces/Community Places: Finding the Balance Through 

Smart Growth Solutions. 2006. http://www.epa.gov/smartgrowth/parking.htm. 20 Shoup, Donald. The High Cost of Free Parking. Planners Press. 2005 and 2011. 21 The Form-Based Codes Institute (FBCI) defines form-based codes as “a method of development regulation, adopted into municipal 

or county law that emphasizes the physical character of development (its form) and includes – but often de-emphasizes – the 

regulation of land uses.” The FBCI offers more information in its publication A Step-by-Step Guide to Form-Based Codes available at 

http://formbasedcodes.org/blog/education/cmap-guide-to-form-based-codes. 

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Attracting Infill Development in Distressed Communities: 30 Strategies 

STRATEGY 5: ADOPT FLEXIBLE CODES POLICIES

minimal permitting burdens. Flexible codes are useful in distressed markets where demand 

for infill is fairly weak and rigid requirements might scare off potential developers. Adding 

this flexibility to local codes allows developers to be more responsive to near-term market 

demand. For example, a flexible code can allow buildings to be designed to be used for 

commercial purposes when the commercial market is strong and then converted to housing 

when that market strengthens.

How? Rather than trying to control every element of design, a local government can stipulate a few 

major objectives or design features it wants infill development to achieve and let the 

developer design a project that meets the objectives. This flexibility can be applied 

communitywide or to a specific area through an overlay zoning district. These efforts often 

take substantial time, money, and political will. The local government should consider these 

changes while updating its comprehensive plan or community vision. Local governments could 

consider forming an advisory committee and seeking zoning code expertise as first steps. 

Figure 7: Hotel Rehabilitation, Fresno, California. Developers often encounter challenges in converting a historic building to a new use.

Photo source: Renaissance Planning Group

Strategies to Encourage Infill Development in Distressed Communities 23
Attracting Infill Development in Distressed Communities: 30 Strategies 

STRATEGY 6: 

PROVIDE CLEAR RULES FOR RENOVATING HISTORIC BUILDINGS

POLICIES

What? Developers want certainty; they want the local government to clearly communicate what is 

permissible under the code. Encouraging infill in areas with many historic buildings might 

warrant specific rules for adaptive reuse22 and perhaps even a separate code or process for 

historic structures that identifies the currently acceptable life-safety standards while 

supporting creative and economically viable rehabilitation and renovation. 

Why? Developers and investors can be discouraged by real or perceived additional costs and 

complications of renovating historic buildings often located in infill areas. A local 

government can make these projects more attractive by providing clear guidance and 

identifying some common reuse strategies and design features through design guidelines or 

demonstration projects. 

How? First, the local government can identify its priority historic buildings for reuse in an infill area 

and establish clear rules for development through an overlay zoning district with regulations 

that preserve the district’s historic character. This step provides clarity for developers. For 

current tenants of historic properties, the local government can establish design guidelines

that show how to respect historic features while accommodating business needs such as 

outdoor seating, signage, awnings, and landscaping. Design guidelines can be applied in a 

district or building by building. Strategy 7 discusses adaptive reuse ordinances, which also 

make it easier to renovate older office or industrial spaces. 

STRATEGY 7: ADOPT AN ADAPTIVE REUSE ORDINANCE POLICIES

What? An adaptive reuse ordinance makes it easier to convert older, economically obsolete 

buildings to new uses, such as housing, by providing tailored zoning and code requirements 

that recognize the differences between reuse and new development. Local governments can 

apply an adaptive reuse ordinance in specific zones with concentrations of historic and 

underused buildings. 

Why? Developers often encounter challenges in converting a historic building to a new use. They 

might find it difficult or impossible to earn an acceptable return on investment if they must 

apply standards for new construction to a historic building. For example, in Los Angeles, 

prior to the city’s adoption of its Adaptive Reuse Ordinance, developers had to provide two 

or more parking spaces for each housing unit, which made it nearly impossible to convert a 

vacant downtown building into housing.23 An adaptive reuse ordinance applies specifically to 

older and historic buildings to make development economically feasible. By making it less 

costly to reuse an existing building, communities can increase jobs, housing options, and 

retail activity in existing and distressed neighborhoods. 

22 Adaptive reuse refers to converting historic and underutilized buildings to new uses that respond to market demand. The City of Los 

Angeles has one of the most successful adaptive reuse programs. Information is available here: 

http://preservation.lacity.org/incentives/adaptive-reuse-ordinance. 23 Rosenberg, Jeremy. “How Downtown LA Became a Place to Live (without Parking).” KCET. April 2, 2012. 

http://www.kcet.org/socal/departures/columns/laws-that-shaped-la/how-downtown-la-became-a-place-to-live-without-parking.html. 

Strategies to Encourage Infill Development in Distressed Communities 24

 
Attracting Infill Development in Distressed Communities: 30 Strategies 

STRATEGY 7: ADOPT AN ADAPTIVE REUSE ORDINANCE POLICIES

How? As a first step, the local government can identify parking, density, design, and/or fire and 

safety standards that developers might have difficulty meeting when redeveloping a 

historic building and assess which of these standards might be relaxed for infill 

development. An adaptive reuse ordinance could, in certain zones, eliminate density 

restrictions, reduce the minimum housing unit size, waive parking requirements, and allow 

expedited development review. 

The city of Los Angeles has catalyzed significant adaptive reuse in downtown Los Angeles 

through changes in the city code. The city’s Adaptive Reuse Ordinance reduced the 

minimum size for apartments and condominiums, waived density standards within the 

zones where the Adaptive Reuse Ordinance applies, removed the requirement for 

developers to seek height and setback variances for their adaptive reuse projects, and 

eliminated requirements for developers to add parking spaces. These changes made 

adaptive reuse projects more financially feasible.24 In the 30 years prior to the adaptive 

reuse ordinance, downtown Los Angeles added only 4,300 housing units. In the 10 years 

following the city’s adoption of the Adaptive Reuse Ordinance, in 1999, the downtown 

added at least 7,300.25 For more information, see: 

www.preservation.lacity.org/incentives/adaptive-reuse-ordinance.

STRATEGY 8: OFFER DENSITY BONUSES IN INFILL LOCATIONS POLICIES

What? Density bonuses allow developers to build at a higher density than is allowed under the 

existing zoning code. This is typically allowed in exchange for a community benefit, such as 

a park or affordable housing. 

Why? A density bonus allows a developer to spread the cost of land and other predevelopment 

costs among more units or square feet. By adding square feet and/or housing units, the 

developer might be able to increase the return on investment from the project. Density 

bonuses are also important incentives for developers to provide community benefits, such 

as park space or other infrastructure that are often needed in infill areas. Therefore, 

density bonuses can bring both the benefits of more people living in the priority infill area 

and much needed community facilities and infrastructure to support existing residents and 

new development. 

How? Density bonuses can be governed through the zoning code or applied during development 

review and approval. They can be effective in areas where the high cost of land is an obstacle 

to infill development. Local governments might want to assess the market conditions to 

determine if density bonuses will be appropriate and effective. In areas with weak demand for 

infill development, developers might not be able to price the finished product high enough to 

24 The City of Los Angeles. “Specific Plan for the Areas of Chinatown, Lincoln Heights, Hollywood Community Redevelopment Project 

Area, Certain Portions of the Wilshire Center/Koreatown Community Redevelopment Project Area, and Central Avenue South of 

Freeway Number 10 and North of Vernon Avenue.” December 20, 2002. http://ladbs.org/LADBSWeb/adaptive-reuse-projects.jsf. 25 Rosenberg, Jeremy. “How Downtown LA Became a Place to Live (without Parking).” KCET. April 2, 2012. 

http://www.kcet.org/socal/departures/columns/laws-that-shaped-la/how-downtown-la-became-a-place-to-live-without-parking.html. 

Strategies to Encourage Infill Development in Distressed Communities 25

 
Attracting Infill Development in Distressed Communities: 30 Strategies 

STRATEGY 8: OFFER DENSITY BONUSES IN INFILL LOCATIONS POLICIES

recoup the higher costs of building at higher densities. In these weaker infill markets, allowing 

greater density is not likely to be helpful. Once existing neighborhoods experience greater 

investment and development activity, density bonuses may become a more useful mechanism 

to encourage infill development and shape such development in a manner that helps meet the 

needs of new and existing neighborhood residents. 

STRATEGY 9: PUT PUBLIC OFFICES IN INFILL LOCATIONS POLICIES

What? Local, state, and federal agencies can improve market conditions for infill development by 

locating their offices in priority infill areas. They have more flexibility than businesses to make 

their location decisions based on social, environmental, or other quality of life benefits. 

Why? Public-sector employers can improve the market for infill development by filling vacant 

office space or building new offices in priority infill areas. Office workers coming into the 

neighborhood stimulate demand for services, restaurants, and homes. Government 

employers can also help developers secure financing and reduce their risk by agreeing to 

rent or buy space in their projects. 

How? A local government would first assess its own future space needs and determine which 

departments or functions are suited to an infill location. It can also determine which priority 

infill areas could benefit the most from having a government office—for example, places 

where employees would patronize local businesses, provide an audience for local events, and 

improve the sense of safety simply by bringing more activity to the neighborhood. Locations 

where workers will drive in and drive out and never leave the building are less likely to 

stimulate additional investment in the area. 

The local government could also contact state and federal agencies, authorities, and 

educational institutions that own or lease space in the region to find out what their needs 

are and help them find suitable infill locations. The federal government has made siting 

federal offices in central business districts and rural town centers a priority, as established in 

Presidential Executive Order 13514 for Federal Leadership in Environmental, Energy, and 

Economic Performance. 26 The General Services Administration (GSA) represents federal 

agencies that own or lease space, and would work with local governments to identify 

locations that meet federal needs.

26 Executive Order 13514 (http://www.whitehouse.gov/administration/eop/ceq/sustainability).

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Attracting Infill Development in Distressed Communities: 30 Strategies 

Figure 8: Johns Hopkins public-private partnership to redevelop East Baltimore.

Photo source: Anne Ditmeyer, Flickr

Case Study: Bundling Public and Private Resources: East Baltimore Development, Inc. 

East Baltimore Development, Inc. (EBDI) is a 501(c)(3) nonprofit consortium founded in 2003 to redevelop the 

economically distressed East Baltimore neighborhood just north of Johns Hopkins University. The consortium, 

managed by the city of Baltimore, the state of Maryland, Johns Hopkins University, local businesses, and 

nonprofit groups, plans to spend about $1.8 billion to redevelop an 88-acre area. The 2012 project plan calls for 

up to 2,000 new or renovated mixed-income homes, 122,000 square feet of retail space, an elementary school, 

and nearly 2 million square feet of commercial space, including a new university biotech center. EBDI acquired 

2,000 properties on behalf of the city and helped 750 families and businesses relocate to prepare the site for 

redevelopment. Many residents are expected to return to the neighborhood after the new homes are built. 

The project stoked opposition among some residents concerned that the new development would displace 

people that had lived in the neighborhood for several decades. This is a common concern in major 

redevelopment projects. In response to these concerns, EBDI included affordable housing in the 

redevelopment and provided support to families for five years after relocation. 

While community concerns have presented a challenge to EBDI, the project is a good example of how public 

and private resources can combine to support infill development. EBDI received public funds from the city, 

state, and federal governments; private funds from Johns Hopkins University and several businesses; and 

philanthropic funds from the Annie E. Casey Foundation, Jeanette Weinberg Foundation, and Atlantic 

Philanthropies. EBDI also received $22.3 million from HUD’s Section 108 program in 2003 to acquire and 

demolish structures and provide services to families temporarily displaced by construction. EBDI is also using 

New Markets Tax Credits, and the city established a tax increment financing district for the project (see 

Strategy 28 for more on tax increment financing). 

The 2007-2009 national recession delayed work on the project, but new office space, apartments, and the 

school opened by 2014 and the project started moving forward again. 

Sources: East Baltimore Development Inc. Financial Information. http://www.ebdi.org/financial_information. Accessed 

Dec. 23, 2014; East Baltimore Development Inc. “Forest City New East Baltimore Partnership, 2011 Recommendations.” 

March 12, 2012. http://www.ebdi.org/master_plan_recommendation. Accessed Dec. 16, 2014; Kilar, Steve. “From ‘Middle 

East’ to ‘Eager Park,’ a Community Is Rebranded.” Baltimore Sun. May 25, 2013; and Sherman, Natalie. “East Baltimore 

Development Moves to Next Phase.” Baltimore Sun. Dec. 14, 2013.

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Attracting Infill Development in Distressed Communities: 30 Strategies 

Partnerships

STRATEGY 10: SEEK STATE AND REGIONAL PARTNERS PARTNERSHIPS

What? Distressed communities often lack the financial resources and staff to promote infill 

development. Partnerships with state and regional government agencies or institutions can 

help close these gaps. 

Why? State and regional partners often have resources that local governments can use to plan or 

prepare areas for infill. For example, the region’s metropolitan planning organization can 

fund studies and infrastructure that set the stage for infill, and a state’s housing agency 

might provide technical assistance or tax credits that help attract new development. These 

partners might also help build the market for infill by putting offices in priority infill areas, as 

described in Strategy 9. 

How? A local government can build relationships with state and regional partners by dedicating a staff 

person to infill development. Part of this person’s responsibilities could include monitoring state 

and regional funding programs and policies while also developing relationships with key staff of 

agencies that can help the community get infill development. Local elected officials can also 

forge relationships with state staff and elected officials. These relationships help state 

government staff understand the local government’s goals and vision.

Fresno, California, partnered with the California Governor’s Office to convene an expert task 

force that helped the city identify strategies for supporting infill development. The state’s 

participation increased the stature of the task force and attracted some of the state’s leading 

experts. The contacts that arose through the task force allowed the state to point Fresno 

toward specific funding sources. In 2014, with the knowledge gained from the task force, 

California started creating a pilot funding mechanism to support infill development statewide.

STRATEGY 11: IDENTIFY AND ENGAGE KEY ANCHOR INSTITUTIONS PARTNERSHIPS

What? Anchor institutions are businesses or nonprofit organizations that have a vested interest in 

the community because of real estate holdings, capital investment, history, or mission.

Why? Anchor institutions can often make real estate investments that serve their programmatic 

needs while contributing to economic development. Nonprofit anchor institutions might be 

less subject to market imperatives than private businesses, allowing them to target their 

investments in ways that encourage additional private investment.27

How? Local governments can start by identifying anchor institutions that might have a stake in 

priority infill areas and determining where their interests overlap with those of the local 

government in areas such as housing rehabilitation, streetscape improvements, or public 

safety. The local government could invite the anchor institutions to participate in existing 

programs or create a new program to work together on community improvement projects. 

For example, anchor institutions can encourage infill development and neighborhood 

revitalization through employer-assisted housing programs (see Strategy 12). Public anchor 

27 EPA. Anchor Institutions and Downtown Reinvestment in Fresno. Aug. 20, 2012.

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STRATEGY 11: IDENTIFY AND ENGAGE KEY ANCHOR INSTITUTIONS PARTNERSHIPS

institutions, such as neighborhood schools, can be very important partners. Schools play a 

large role in neighborhood perception, and school leaders can help improve their 

neighborhoods through programs that connect residents to school improvement projects and 

mentoring programs.

Anchor institutions are physically and economically “anchored” to the broader community, 

so the local government could also engage those that are located outside of priority infill 

areas. They still have an interest in improving their region’s economy. 

The Cleveland Foundation initiated a partnership with the City of Cleveland and its leading 

anchor institutions in 2005 to launch the Greater University Circle initiative. The initiative is 

helping guide new investment in a four-square mile area known as Greater University Circle. 

The district is home to the region’s top cultural institutions as well as major universities and 

medical institutions, some of which are international leaders. The goal of the initiative is to 

turn this district into the best place to live, work, and visit in Northeast Ohio by harnessing 

the resources of the area’s large anchor institutions to benefit the residents and transform 

their neighborhoods. The initiative is led by a non-profit, University Circle Inc., responsible 

for the development, service, and advocacy of University Circle. (See: 

www.clevelandfoundation.org/grants/our-priorities/greater-university-circle/ )

Figure 9: Johns Hopkins University, Baltimore. Anchor institutions also have a stake in infill development and revitalization.

Photo source: Let Ideas Compete, Flickr

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Case Study: Engaging Anchor Institutions: Fresno, California

Fresno’s Mayor Ashley Swearengin came to the conclusion that Downtown Fresno and its surrounding 

historic neighborhoods could not be revitalized without the collaboration of local anchor institutions. In 

early 2014, Mayor Swearengin convened the leaders of Fresno’s educational institutions, medical 

institutions, and other key sectors such as banking and agriculture to stand up the Fresno Presidents’ 

Council. The Council developed a declaration, signed by all its members, which stated:

Our industries and institutions are, by nature, rooted to this region. We will still be here in 100 years, a 

part of the community for as long as Fresno exists. Our futures are inextricably tied to the ability of the 

region to prosper and be healthy. 

Anchor institutions in other communities throughout the country have successfully partnered with one 

another, with local government, and with other community institutions to spur catalytic community 

investments. Working together, these institutions have brought new life to downtowns, urban 

neighborhoods, and local economies. 

The Fresno Presidents’ Council resolves to:

• Support public investments in the inner city, starting with infrastructure and regulatory changes, 

necessary to restore Downtown Fresno as the regional center for commerce and culture.

• Plan together and create programs, facilities, events, etc., that combine the strengths of our 

offerings to provide novel and needed health care, educational, financial management, and 

nutritional services to the community, especially in neighborhoods of greatest need, furthering our 

institutions’ individual missions.

• Work collaboratively with one another and with other businesses and community-based organizations 

to maximize the positive impact on the local economy of our institutions’ buying power.

• Explore nontraditional opportunities to invest directly in historic neighborhoods of concentrated 

poverty, such as by creating housing and recreational opportunities for employees that aid in 

recruitment and retention while contributing to neighborhood revitalization.

• Advocate for a long-term approach to land use decisions at all levels, reflecting consciousness of 

the high value of food production over time as one of the primary drivers of the region’s export 

economy, and of the connection between threats to the region’s future and continued 

disinvestment in the existing, urbanized area of the community.

• Collaborate with additional partners and pursue the funding and other resources necessary 

to achieve our objectives.

Source: Sheehan, Tim. Fresno Mayor Swearengin corrals business, education leaders to support downtown efforts. 

The Fresno Bee. http://www.fresnobee.com/2014/02/26/3791931_fresno-mayor-swearengin-corrals.html?rh=1.

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STRATEGY 12: EXPLORE EMPLOYER-ASSISTED HOUSING PARTNERSHIPS

What? Employer-assisted housing includes financial assistance or education offered by an employer 

to help its workers purchase homes. Housing finance company Fannie Mae describes 

employer-assisted housing as “an employee benefit that helps an employer achieve business 

goals while helping their employees with housing needs.”28 

Why? Employer-assisted housing supports an employer’s interest in providing decent and 

affordable housing for its employees to attract and retain a skilled workforce. Employerassisted housing programs can have the added benefit of stimulating weak-market areas by 

bringing new residents and new investment. In downtown areas, employer-assisted housing 

can help balance the number of jobs and homes. 

The Metropolitan Planning Council in the Chicago region found that employees participating 

in one employer-assisted housing program had far lower turnover rates than nonparticipating employees.29 More information on employer-assisted housing programs is 

available through HUD: http://portal.hud.gov/hudportal/HUD?src=/states/illinois/news/eah.

How? A municipal government can establish its own employer-assisted housing program as a 

model for other employers in the area. The program could involve direct financial assistance 

to homebuyers or renters, or homebuyer counseling. With its newfound expertise, the local 

government can work with employers to establish their own programs, with a special 

emphasis on older neighborhoods and infill locations. Employers can often deduct the 

expense from their federal taxes. Additionally, in some states, employers receive a tax credit 

for their investment in employer-assisted housing.

STRATEGY 13: ENGAGE PHILANTHROPIC ORGANIZATIONS PARTNERSHIPS

What? Local, regional, state, and national philanthropic organizations can support local 

governments’ community development efforts. Organizations that support environmental 

protection, affordable housing, social equity, distressed communities, and economic 

development will have a natural interest in infill development. 

Why? Distressed communities often need financial and technical assistance to achieve their 

economic and development goals. Philanthropic organizations can fill this void through 

grants, loans, advocacy, training, or even direct investment in projects. 

How? The local government can identify local and national organizations that might have funding 

programs relevant to the community’s development goals.30 In addition to tracking and 

applying for funding opportunities, the local government can build relationships with 

philanthropic organizations to engage them as long-term partners in solving complex 

community development challenges. Locally based foundations have a particular interest in 

28 Ross, Lynn M. Quantifying the Value Proposition of Employer-Assisted Housing: A Case Study of Aurora Health Care. Center for 

Housing Policy. May 2008. 

29 Metropolitan Planning Council. “Employer-Assisted Housing.” http://www.metroplanning.org/work/project/8. Jan. 31, 2014. 30 The Smart Growth Funders Network maintains a list of its members, foundations that focus on growth, and development issues, at 

http://www.fundersnetwork.org/connect. 

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STRATEGY 13: ENGAGE PHILANTHROPIC ORGANIZATIONS PARTNERSHIPS

local revitalization initiatives, similar to anchor institutions (see Strategy 11), but they might not 

know about the initiatives or understand how to get involved. Public and private stakeholders 

in infill development can approach these organizations to share information on local initiatives, 

learn about the organization’s funding priorities, and look for areas of mutual interest. 

Philanthropic organizations typically want to support projects with a high likelihood of 

success, rather than being “first out of the gate” investors in an untested idea. The local 

government can identify infill projects that fit a philanthropy’s mission and goals where the 

foundation can provide meaningful support as one of several partners. 

Phoenix, Arizona, tapped into local and national philanthropic groups and nonprofit 

organizations to launch a $20 million revolving loan fund that supports transit-oriented 

development in some of the region’s most economically distressed neighborhoods. LISC and 

Raza Development Fund contributed the seed money, and a partnership of local 

governments, nonprofit anchor institutions, state and regional agencies, and local businesses 

manage it. Between 2011 and 2014, the fund leveraged $141 million in private investment 

and funded more than 900 housing units in 15 projects. To learn more about the fund’s 

accomplishments, visit www.sustainablecommunitiescollaborative.com/ouraccomplishments/. 

STRATEGY 14: CREATE A PUBLIC SECTOR-DEVELOPER LIAISON PARTNERSHIPS

What? A public sector-developer liaison is a local government staff person who helps developers 

navigate the development review process; researches and recommends policy changes that 

support infill development; and provides technical assistance to developers on applicable 

local, state, and federal financing programs. 

Why? Developers can consume valuable time navigating and understanding a local government’s 

codes and policies. The government can help make infill projects easier and faster by 

providing a knowledgeable staff person to work with developers to navigate the municipal 

processes. This person could be a local expert on local, state, and federal funding programs 

for infrastructure and development finance to help developers identify and understand 

financing tools and other resources to help get infill projects off the ground. Many 

development incentive programs are very complex and can be intimidating for lessexperienced developers. 

How? The community could establish a position dedicated to encouraging infill development and 

assisting developers build infill projects. This person would learn about state and federal 

infrastructure and development financing programs and establish good working 

relationships with local developers who are interested in infill projects. The staff person 

probably fits most naturally in the planning department or an authority or department 

dedicated to economic or downtown development. The local government might want to 

establish some criteria for which projects are eligible for this liaison service—for example, 

those within a priority infill area.

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STRATEGY 15: CREATE A LOCAL DEVELOPER CAPACITY-BUILDING PROGRAM PARTNERSHIPS

What? A capacity-building program sponsored by the local government could help local developers 

learn the skills they need to build infill projects. This program could encompass training, 

financial support, and partnerships with local colleges or technical schools. 

Why? Local developers might be more likely to invest in infill projects that larger national 

developers might view as too risky. But these developers might not have the experience of 

larger firms. Unlike the developer liaison described in Strategy 14, a capacity-building 

program would go beyond facilitation to enhance local developers’ skills and knowledge of 

infill development techniques, design, organizational development, and financing. 

How? Local governments can help improve local developers’ skills through training programs or by 

collaborating with existing programs. For example, many community colleges and 

universities offer construction management and development training programs. Local 

governments can also work with the local chapters of national real estate organizations, real 

estate development certification and training programs, and coordinate with conferences 

and seminars on real estate development. City-assisted pilot infill development projects are 

another way to build capacity that can make a tangible improvement in a priority infill area. 

Supporting such a program could be one of the job descriptions of the liaison. A developer 

liaison (Strategy 14) could lead a pilot project.

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Perception

STRATEGY 16: STRENGTHEN CODE ENFORCEMENT PERCEPTION

What? Local governments enforce codes through dedicated code enforcement officers, the local 

police department, or both. Enforcing property maintenance codes is especially important to 

improving people’s perception of a neighborhood. Consistent code enforcement can 

improve a neighborhood’s look and feel, improve safety, and boost the confidence of 

community members and potential investors. 

Why? Derelict housing and vacant commercial spaces can decrease the value of adjacent 

properties. They can also affect the perception of potential homebuyers, renters, and 

businesses looking to relocate to the area. Effective code enforcement can help redress 

blight and improve people’s perceptions of the neighborhood’s safety and value. 

How? The local government can start its enhanced code enforcement efforts by working with 

neighborhood associations in priority infill areas to identify properties that need help. Some 

property owners might be neglecting maintenance and violating codes due to economic 

hardships. For these owners, some local governments provide financial assistance to make repairs. 

The local government can also take legal action, such as assessing a tax lien for cleanup, or apply 

fines when property owners fail to fix code violations. This approach will likely work best in 

neighborhoods with a few problem spots. Enhanced code enforcement is less likely to work in 

neighborhoods with extensive abandonment and disinvestment. In these neighborhoods, the 

local government may choose to acquire vacant properties and assemble them into larger parcels 

to make available for redevelopment. This work is often carried out through land banks, which are 

described in strategy 22. Some local governments have also worked to turn these neighborhoods 

back into open space or park lands rather than encourage future infill development. 

Figure 10: Occupied and vacant housing side-by-side in Gary, Indiana. Something as simple as a broken window can indicate a 

lack of respect for property, or indicate that a neighborhood is in economic and social decline. 

Photo source: Eric Allix Rogers, Flickr

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STRATEGY 17: BUILD COMPLETE STREETS PERCEPTION

What? During the second half of the 20th century, most streets in American cities were designed 

with the primary consideration of moving vehicles. Now, many cities are adopting the 

concept of “complete streets,” which are safe and comfortable for all users—pedestrians, 

bicyclists, transit riders, and drivers.31 

Why? Complete streets are especially important in priority infill areas. These areas are more likely 

to attract the interest of potential residents and businesses—and therefore developers—if 

they are welcoming to all modes of transportation and offer people easy access to daily 

destinations without needing a car. Complete streets can also improve the public perception 

of an area by adding more activity and eyes on the streets, which improves public safety. 

Also, by creating more travel options, complete streets can reduce parking demand and the 

cost to build parking in new development. 

How? Several design elements help transform an automobile-oriented corridor into a complete 

street, including wider sidewalks, street trees, a buffer between moving traffic and the 

sidewalk (e.g., a parking lane), protected bicycle lanes, and buildings that face the street. 

Some particularly wide roads might be well suited for a “road diet,” which reduces the 

number of lanes or narrows existing lanes. The narrower street naturally encourages drivers 

to slow down; shortens the distance pedestrians must cross, which is particularly important 

for people with mobility problems; can create room for bike lanes; and can reduce the 

amount of impervious surface, which can reduce stormwater runoff.32 

The local government can take an important early step by identifying future complete streets 

in its transportation or comprehensive plans. Once the community knows where it would like 

to make these improvements, it can work with its metropolitan planning organization (MPO) 

or state department of transportation to design the improvements and program funds for 

construction. This process can take several years. 

31 For more information and resources on complete streets, including model complete streets policies, see: Smart Growth America.

“National Complete Streets Coalition.” http://www.smartgrowthamerica.org/complete-streets. Accessed Aug. 13, 2014. 32 See the following resources: Complete Streets Coalitions Resources page (http://www.smartgrowthamerica.org/completestreets/complete-streets-fundamentals/resources); 

Institute of Transportation Engineers “Designing Walkable Urban Thoroughfares: A Context Sensitive Approach

(http://library.ite.org/pub/e1cff43c-2354-d714-51d9-d82b39d4dbad); and EPA’s Restructuring the Commercial Strip: A Practical Guide 

for Planning the Revitalization of Deteriorating Strip Corridors (http://www.epa.gov/smartgrowth/corridor_guide.htm).

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STRATEGY 18: CREATE A BUSINESS IMPROVEMENT DISTRICT PERCEPTION

What? A business improvement district (BID) is a defined area within which businesses pay an 

additional tax or special assessment to fund projects within the existing business area. Local 

governments can establish BIDs to raise additional property tax revenue and reinvest the 

funds into the district to improve the business climate. The additional revenue can go toward 

maintenance, marketing, cleaning, events, and moderate capital and streetscape 

improvements, such as rebuilding sidewalks. These services go beyond the baseline services 

provided by the local government. 

Why? Private malls have advantages that public business districts lack. For instance, they provide 

shared parking, security, litter and graffiti cleanup, marketing, and capital improvements. The 

merchants share these expenses by paying their rent to the mall’s owner. Business districts 

typically have fragmented land and building ownership, and, as a result, it is more difficult to 

pursue collective action that improves the entire district. BIDs can remedy this competitive 

disadvantage. 

How? BIDs require state enabling legislation, and their organization and powers vary from state to 

state. BIDs are typically established through a vote by property owners in the defined district. 

In some states, the vote requires a supermajority of two-thirds or more before the BID is 

approved. Once approved, the property owners pay an additional increment on their 

property taxes that can be used only to benefit the district. BIDs are typically managed by an 

executive director and overseen by a board of property owners in the district. The board 

typically decides how to spend funds generated by the district. 

BIDs can be used in any business district that includes several businesses and buildings under 

different ownership. However, they are especially useful for areas that are struggling to 

attract shops and investment due to poor collaboration among property owners or poor 

public perception. Often, communities establish them in downtowns. The city of Oklahoma 

City is an example of a community that used BIDs to revitalize struggling commercial districts. 

Information about Oklahoma City’s program is available here: 

www.okc.gov/planning/cdrp/bid.htm. 

STRATEGY 19: HOLD PUBLIC EVENTS AND FESTIVALS IN INFILL LOCATIONS PERCEPTION

What? Public events and festivals can bring foot traffic and customers to priority infill areas. 

Why? Regular, neighborhood-centered events such as farmers’ markets, bike rodeos where bike 

safety is taught to children, craft and food fairs, winter holiday ice rinks, and church festivals 

can connect neighbors and build a neighborhood’s identity (see Strategy 20). Some cities 

have also organized housing tours to market the downtown and historical neighborhoods. 

The tours can introduce people to the housing options in these areas and highlight locations 

where the community wants to attract investment and infill development. These events can 

help to change perceptions and support local businesses.

How? Events can be organized and promoted by neighborhood anchor institutions, a BID, local 

businesses, or other organizations. 

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STRATEGY 20: INITIATE A NEIGHBORHOOD IDENTITY CAMPAIGN PERCEPTION

What? A neighborhood identity campaign strengthens or establishes an area’s identity by giving it a 

name and tying specific architecture, signage, public art, or public spaces to it. 

Why? Local governments can encourage development in older neighborhoods by promoting their 

distinctive characteristics. These strategies can improve residents’ perceptions of an area, 

which can increase market demand for housing, commercial space, and offices. 

How? Community identity can come from its historic or cultural roots; a specific facility or public 

place such as a park, cultural institution, or commercial district; or an architectural style or 

identity. Local governments, community groups, and residents can develop a community 

identity campaign to confirm a neighborhood’s identity or rebrand it based on these 

attributes. Once the identity is established, the local government and community members 

can improve public awareness of distinctive neighborhoods through tools such as marketing 

materials, distinctive signs, a neighborhood website, or a neighborhood nickname. 

Neighborhoods can also undertake joint promotional activities with anchor institutions that 

have a stake in the neighborhood’s health and perception.

Figure 11: Unique street signs in The Fan District of Richmond, Virginia. Local governments can encourage development in 

older neighborhoods by promoting their distinctive characteristics. 

Photo source: Jason Coleman, Flickr

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Paying for Infill Development and Infrastructure 

A strong foundation of supportive policies is necessary for an infill development market to emerge and 

thrive, but it does not guarantee success. Infrastructure improvements add to the cost of infill 

development projects. When infrastructure is in place, developers must still get financing to build their 

projects. They might find it difficult to secure financing for a concept with few comparable projects in 

the region, or the anticipated revenue might be too low to cover the cost of development. In these 

instances, the local government needs to decide if it is willing to financially help an infill project to 

achieve its vision for the area. 

This section describes some standard and innovative funding options, focusing on emerging or creative 

funding mechanisms, to support development and fund infrastructure. 

Funding for Infill Development

STRATEGY 21: 

ENACT A PROPERTY TAX ABATEMENT PROGRAM FOR INFILL LOCATIONS

FUNDING FOR INFILL 

DEVELOPMENT

What? Local governments use property tax abatement to waive property taxes on improvements 

such as a new or remodeled house for a fixed period of time.

Why? Without a tax abatement policy, a property owner could receive a substantially higher tax 

bill after improving his or her property. Higher taxes resulting from property improvements 

are an economic disincentive to investment. Communities can attract investment in priority 

infill areas by reducing or eliminating property taxes on new investment. With a lower future 

tax obligation, the owner or developer can more easily afford to take on debt to make 

improvements or repurpose a property. 

How? A popular tax abatement strategy is to hold the property taxes constant after an improvement, 

until reaching the time limit set by the local government. Cleveland and Philadelphia both manage 

tax abatement programs with 10- to 15-year abatement windows depending on the building type. 

The local government would need to establish rules for project eligibility, design, geographic 

coverage of the program, and transferring the abatement from one owner to another. Geographic 

coverage is an especially important consideration for local governments looking to attract 

development to a priority infill area. Cleveland and Philadelphia’s programs cover their entire 

jurisdictions, while Portland, Oregon provides tax abatement in targeted development areas, such 

as around transit stations. Some cities also choose to attach design requirements. For example, 

under Cleveland’s program, residential projects seeking tax abatement must meet the city’s green 

building standards. However, applying too many conditions could defeat the purpose of helping the 

developer overcome the funding gap by increasing the costs.33 34

33 For more information on Philadelphia’s tax abatement program, see: Office of Housing and Community Development. Tax 

Abatement. http://www.phila.gov/ohcd/taxabate.htm. Accessed Dec. 2, 2014. 34 For more information on Cleveland’s tax abatement program, see City of Cleveland. Tax Abatement. 

http://www.city.cleveland.oh.us/CityofCleveland/Home/Government/CityAgencies/CommunityDevelopment/TaxAbatement. 

Accessed Dec. 2, 2014. 

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STRATEGY 22: 

IMPLEMENT A LAND BANKING PROGRAM

FUNDING FOR INFILL 

DEVELOPMENT

What? Local governments use land banks to acquire, stabilize, and redevelop abandoned or vacant 

properties. Through land banks, local governments can remove encumbrances such as tax 

liens or environmental contamination and prepare the property for a new productive use. 

Land banks effectively “hold” vacant or underused properties for future reuse and 

redevelopment.35 

Why? Vacant and abandoned properties are common in the older neighborhoods of many 

distressed communities. These properties can damage people’s perceptions of safety, the 

economy, and general quality of life. They are also wasted assets of land and buildings that 

could be used for housing, offices, open space, and other more productive uses. However, 

these properties also come with many problems. They might have tax liens because the 

owner has not paid property taxes or fines related to property maintenance; they might 

have environmental contamination; and the local government might not be able to 

determine who owns the property. Land banks can take possession of these properties, clear 

them of the problems that make it difficult for a developer to purchase them, and then sell 

them for redevelopment. 

How? The local government first needs to collect data on all of its properties, such as data on tax 

delinquency and code violations. The government can use these data to identify specific 

areas where a land bank could operate. In some states, state enabling legislation to 

authorize the land bank and to facilitate property acquisition and tax foreclosures might be 

needed. Before establishing a land bank, the local government will need to determine how it 

will be managed. Some land banks are managed by city or county governments, while others 

are run as an autonomous entity. Once the local government establishes the land bank, it 

will need to set criteria for acquiring properties. The local government or land bank 

administrator must also establish policies for how it will stabilize and sell properties. 

Flint, Michigan, is a good example of a city that has used a land bank to transform vacant 

and abandoned properties. Genesee County runs a land bank that owns nearly 9,000 

properties in the Flint area, including more than 4,400 homes and more than 4,000 vacant 

residential properties. The county forecloses on properties that are more than three years 

delinquent in property taxes and transfers them to the land bank. The land bank sells and 

rents properties and manages vacant lots by mowing and picking up trash or leasing them to 

neighbors for gardening or leisure. Learn more about the Genesee County Land Bank here: 

www.thelandbank.org/whatwedo.asp.

35 A useful publication for communities that are interested in land banking is: Alexander, Frank S. Land Banks and Land Banking. Center 

for Community Progress. Jun. 2011. http://www.communityprogress.net/publications-pages-396.php. 

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STRATEGY 23:

IMPLEMENT A LAND VALUE TAX

FUNDING FOR INFILL 

DEVELOPMENT

What? A land value tax is a type of property tax that imposes a higher rate on land than the 

improvements upon it. It can also refer to a property tax that applies only to the land.36 

Why? A land value tax encourages development because the tax rate is based on the highest 

possible use of the property. Therefore, a land value tax makes it expensive to sit on land 

without developing it. It can also reduce the cost of development because property taxes 

will rise by only a nominal amount, or not at all, after the owner develops the property.

How? Most local governments will need state-enabling legislation to apply land value taxation. As 

of 2010, land value taxation was used widely only in Pennsylvania and authorized in two 

other states, Connecticut and Virginia. Local governments could study the experiences of 

other cities and towns, particularly in Pennsylvania, to understand what works, establish 

their own policies, and educate elected officials and the public about the policy. Land value 

taxation would most likely be applied throughout the taxing district and phased in over 

several years, with the rate for land increasing and the rate for improvements decreasing. 

Because land value taxation can make owning land more expensive, the Lincoln Institute of 

Land Policy recommends that communities with high land prices offer exemptions, credits, 

and varied rates to reduce the impact on land-rich but income-poor citizens.37

STRATEGY 24: 

ATTRACT PRIVATE EQUITY

FUNDING FOR INFILL 

DEVELOPMENT

What? “Private equity” refers to funds that are invested in a project by the developer and its partners, 

or through tax credits and grants. Private equity is considered “patient capital,” meaning that it 

has more lenient payback terms than a more traditional lender.

Why? Nearly all projects will require private equity. Greater private equity in a project gives 

lenders more confidence and reduces the developer’s debt burden.

How? Private equity is one form of debt in a project. It is especially important for adaptive reuse 

projects in an infill area because traditional lenders might see these projects as more risky 

and, as a result, will often lend no more than 50 percent of the project’s cost. The local 

government can help developers attract private equity by helping them pursue private 

equity sources such as tax credits and grants. The local government can also invest directly in 

a project. Often, it provides “mezzanine debt,” which fills the gap between a traditional loan 

and the private equity. Should there be a default, mezzanine debt is subordinate to the 

traditional loan but is paid back before the private equity investors.38

36 Dye, Richard F., and Richard W. England. Assessing the Theory and Practice of Land Value Taxation. Lincoln Institute of Land 

Policy. 2010. 

37 Ibid. 38 Raulli, Christy. “Mezzanine Financing in Community Economic Development.” UNC School of Government. Aug. 9, 2013. 

http://ced.sog.unc.edu/?p=4598. 

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Attracting Infill Development in Distressed Communities: 30 Strategies 

STRATEGY 25: 

ENCOURAGE COMMUNITY DEVELOPMENT CORPORATIONS

FUNDING FOR INFILL

DEVELOPMENT

What? Community development corporations (CDCs) are nonprofit organizations that manage or 

invest in projects consistent with community goals, such as job creation, revitalization, and 

affordable housing. CDCs operate in all 50 states and are often organized and managed by 

neighborhood residents, institutions such as churches, small business owners, and other groups 

with an interest in community development.39 

Why? CDCs often work in distressed communities on a wide range of services and projects, 

including infill real estate development, to spur revitalization. They help fill a gap in the 

market by investing in projects that traditional lenders and developers are not interested 

in. CDCs can also invest alongside the private sector by providing gap financing between a 

traditional loan and private equity. 

How? CDCs are often started by residents or a nonprofit organization, such as a church, that want to 

improve their community. They are established as 501 (c)(3) nonprofit organizations and often 

capitalized through public or private grants. Many CDCs support infill development by investing 

their funds in small to moderate projects in their neighborhood. If necessary, the public sector 

could collaborate with local CDCs to ensure that their work aligns with community-wide and 

regional development goals. 

CDCs sometimes partner with for-profit developers to construct larger projects. In these 

joint ventures, CDCs often bring local real estate knowledge and local political and 

community support. CDCs also have access to funding and financing programs administered 

by the federal government or foundations that might not be available to private 

developers.40 Meanwhile, a for-profit developer might have more access to capital, 

technical capacity, and experience.41 

CDCs often rely on a patchwork of diverse funding sources to carry out their missions. For 

example, a report on Philadelphia’s CDCs found that federal funding supplies only about 10 

percent of their budgets. Earned income provided nearly 30 percent, foundations supplied 

nearly 22 percent, and state government funding was responsible for about 20 percent.42 

Three common federal funding sources that CDCs use to support infill development are 

Community Development Block Grants (CDBGs), Low Income Housing Tax Credits, and the 

HOME Investments Partnership Program. 

39 Morris, Stephen. “CDCs and CDCs: Community Development Corporations and SBA Certified Development Companies.” U.S. Small 

Business Administration blog. Jun. 23, 2011. http://www.sba.gov/community/blogs/community-blogs/small-business-cents/cdcs-andcdcs-community-development-corporation. 40 For a general guide to CDCs, see Community Development Corporations Information Guide, The University of Alabama Center for 

Economic Development. 2013. http://www.uaced.ua.edu/uploads/1/9/0/4/19045691/cdc_information_guide_revised_2013.pdf. 41 Jacobus, Rick, and Maegan Winning. Joint Ventures With For-Profit Developers: A Guide for Community Development Corporations.

Local Initiatives Support Corporation. 2006. 

42 Philadelphia Association of Community Development Corporations. “Collective Strength: The $3.3 Billion Impact of Philadelphia

Community Development Corporations.” Dec. 2012. 

Strategies to Encourage Infill Development in Distressed Communities 41

 
Attracting Infill Development in Distressed Communities: 30 Strategies 

Case Study: CDC-Developer Partnership in the East Liberty Neighborhood, Pittsburgh, Pennsylvania

East Liberty Development, Inc. (ELDI) is a CDC in an older neighborhood of Pittsburgh. East Liberty’s chamber 

of commerce founded ELDI in 1979 in an attempt to reverse decades of economic decline. The East Liberty 

Presbyterian Church was also an important funder in ELDI’s early years. ELDI’s early work involved reopening 

formerly closed-off streets to vehicular traffic and renovating a former hotel. However, the neighborhood 

continued to struggle from public perceptions that it was unsafe. ELDI planted the seeds of the 

neighborhood’s renewal through a community-driven vision and plan for East Liberty in 1999. 

Soon after that, a local developer proposed a catalyzing project: building a Whole Foods supermarket on a 

parcel he had assembled on the edge of the neighborhood. However, the $6 million project had an $875,000 

financing gap. ELDI and the developer formed a joint venture in 2001 to develop the store, with ELDI acting as 

the local advisor and applying for public and nonprofit grants. The developer agreed to hire qualified workers 

from the neighborhood and to give ELDI a share of the project’s income. ELDI secured a $375,000 grant from 

LISC and a $500,000 award from the U.S. Department of Health and Human Services’ Office of Community 

Services. This funding allowed the developer to proceed with the project. Five years after the store opened, 

nearly half its staff came from the local neighborhood. 

ELDI continues to invest in the neighborhood, but its contributions go far beyond real estate development. For 

example, in 2010, ELDI planted 213 trees, helped build five rain gardens, updated the community plan from 

1999, and enlisted 141 volunteers in a community cleanup event.)

Sources: East Liberty Development Inc. 2010 Annual Report. 2011; East Liberty Development Inc. History of ELDI. 

http://www.eastliberty.org/about-eldi/history-eldi. Accessed Dec. 23, 2014; and Jacobus, Rick, and Maegan Winning. Joint Ventures 

with For-Profit Developers, A Guide for Community Development Corporations. Local Initiatives Support Corporation. 2006. 

Figure 12: Pittsburgh’s East Liberty Whole Foods supermarket is a key part of the neighborhood’s revival, and support from the 

local Community Development Corporation was critical. 

Photo source: Young Preservationists Association of Pittsburgh

Strategies to Encourage Infill Development in Distressed Communities 42
Attracting Infill Development in Distressed Communities: 30 Strategies 

STRATEGY 26: ENCOURAGE CROWDFUNDING FOR PROJECTS AND 

BUSINESSES IN PRIORITY INFILL DEVELOPMENT AREAS

FUNDING FOR INFILL 

DEVELOPMENT

What? Crowdfunding is a new technique that involves raising money, typically over the Internet, 

from a “crowd” of people that each has a small stake in the project. The federal Jumpstart 

Our Business Start-ups (JOBS) Act, signed into law in 2012, requires the U.S. Securities and 

Exchange Commission (SEC) to develop rules to govern crowdfunding.43 The SEC proposed 

crowdfunding rules in 2013, but had yet to adopt them as of December 2014 and did not 

have a timeline for releasing them. In the absence of rules from the SEC, several states 

adopted their own regulations for crowdfunding by companies raising money within their 

borders.44

Why? The JOBS Act is meant to make it easier for small businesses and developers to raise 

money through crowdfunding. The SEC rules are likely to allow private organizations to 

raise equity investments from any individual investor. Before the JOBS Act, organizations 

could raise equity investments only from wealthy, accredited investors. The new law 

should allow developers to raise funds from residents in the community where a project is 

proposed. Crowdfunding could be an especially powerful tool for raising equity for infill 

projects that investment funds and institutions that are disconnected from the community 

view as too risky. For example, an infill project in a distressed community’s downtown 

might not meet conventional lenders’ requirements for return on investment, but local 

residents might think the project is important enough for the community to invest small 

amounts of their own money.

How? Crowdfunding is an evolving tool, and it is not clear yet how a local government might use it. 

A developer or a nonprofit such as a CDC would be more likely to use crowdfunding. 

Crowdfunding can also support entrepreneurs who take a risk by opening a new business in a 

distressed area. The funds can help them update retail spaces and purchase equipment. 

Several companies are entering the crowdfunding market. Because crowdfunding is on the 

cutting edge, precautions should be taken to safeguard against fraud and other risks. Some 

professional investors are concerned that crowdfunding might attract borrowers who 

defraud unsuspecting investors. Additionally, crowdfunding could make it easier for an 

entrepreneur to obtain financing, but it will not make it easier to actually build a project.45

43 Beesley, Caron. “Crowdfunding—Is It Right for Your Business? Where Do You Start?” U.S. Small Business Administration blog. Jul. 8, 

2013. http://www.sba.gov/community/blogs/crowdfunding-%E2%80%93-it-right-your-business-where-do-you-start. 44 Solomon, Steven Davidoff. “S.E.C.’s Delay on Crowdfunding May Just Save It.” New York Times. Nov. 18, 2014. 

http://dealbook.nytimes.com/2014/11/18/s-e-c-s-delay-on-crowdfunding-may-just-save-it-2/?_r=0. 45 Wortham, Jenna. “Law Opens Financing of Start-Ups to Crowds.” New York Times. Sep. 22, 2013. 

Strategies to Encourage Infill Development in Distressed Communities 43

 
Attracting Infill Development in Distressed Communities: 30 Strategies 

Case Study: Creative Finance through Community Ownership, San Diego, California

The Village at Market Creek is an infill retail project in a distressed neighborhood of San Diego. The Jacobs 

Center for Neighborhood Innovation, a foundation, bought the site—previously known as the “Four Corners of 

Death” because of the prevalence of crime—for $4 million in 1998. From the beginning, The Jacobs Center 

involved the neighborhood’s residents in planning and designing a new shopping center. However, The Jacobs 

Center also wanted to let the residents share in the project’s financial rewards. The center designed a new 

tool called the “Community Development Initial Public Offering (IPO)” to share ownership with the residents.

Development investors are typically institutions or wealthy individuals. But the Village at Market Creek IPO 

targeted residents of the area, who had a median income of about $35,000 per year in 2007. The IPO opened 

in July 2006 to people who lived, worked, or volunteered in the community. Ultimately, it attracted 415 

investors who contributed between $200 and $10,000 for ownership shares sold at $10 each. The 

neighborhood investors are first in line to collect profits each year. The investors received a 10 percent return 

in 2008 and 2009.

The Jacobs Center’s greatest obstacle in establishing the Community Development IPO was gaining approval 

from California’s Department of Corporations. The center spent six years working to win approval, and its 

lawyers submitted 40 drafts of the IPO, before the department agreed to allow residents to invest up to 10 

percent of their income or 10 percent of their net worth, up to $10,000. The Jacobs Center also worked hard 

to explain the IPO concept to the neighborhood, hosting tours, dinners, and presentations with potential 

investors. Further, with the 2012 enactment of the federal Jumpstart Our Business Startups (JOBS) Act, which 

reduces obstacles to individual investment in real estate projects, the Village at Market Creek could be a 

bellwether of things to come. 

Sources: Jacobs Center for Neighborhood Innovation. Community Development IPO. 

http://www.jacobscenter.org/economicdevelopment_cdipo.htm. Accessed Jan. 30, 2014; and Stuhldreher, Anne. 

“Lower-income Patrons of Market Creek Plaza Can Now Invest in the Shopping Center.” Stanford Social Innovation Review. 

Winter 2007.

Strategies to Encourage Infill Development in Distressed Communities 44
Attracting Infill Development in Distressed Communities: 30 Strategies 

Funding for Infrastructure

Infill developers often have to pay to upgrade water, sewer, stormwater, streets, and other 

infrastructure. The federal government is a major source of funding for infrastructure improvements for 

local governments. State and regional contacts at HUD, Federal Highway Administration (FHWA), 

Federal Transit Administration (FTA), EPA, and several other federal agencies can provide information 

about federal programs, large and small, for improving infrastructure.46 For a list of tools and strategies 

that are available for financing and funding specifically for infrastructure in and around transit-oriented 

development, see EPA’s Infrastructure Financing Options for Transit-Oriented Development.

47 The 

strategies that follow identify nonfederal options to finance infrastructure improvements.

STRATEGY 27: 

CREATE A TAX INCREMENT FINANCING DISTRICT

FUNDING FOR 

INFRASTRUCTURE

What? Tax increment financing (TIF) is similar to special assessment district financing (see below), 

but with an important distinction. Through TIF, local governments pay for infrastructure 

improvements with revenue that is generated by higher property values. Unlike special 

assessment districts, property owners in a TIF district do not pay a different property tax 

rate than the surrounding non-TIF areas. Rather, the local government pays the cost of 

infrastructure improvements upfront. The new infrastructure makes new development 

possible. The locality then uses the tax revenue generated by the new development to pay 

off the debt that it incurred to fund the infrastructure improvements in the first place. 

Why? TIF districts raise funds for infrastructure improvements from the property owners who are 

benefiting, reducing the upfront cost burden on the developer and local government. Local 

governments can use a TIF district to finance infrastructure in a distressed area that might 

not attract private investment without significant infrastructure improvements. 

TIF is authorized in nearly all states, but the tool has been criticized. For example, some 

experts have argued that TIF districts shift development from non-TIF areas and have little 

effect on a community’s overall property tax revenue for schools and other services. Such 

concerns led California to eliminate TIF financing through its redevelopment authorities in 

2012.48 However, TIF remains a popular tool for economic development in distressed 

communities that struggle to attract traditional financing.

How? To establish a TIF district, the local government often must declare that an area is blighted 

or underdeveloped. The community then establishes the district boundary and dedicates 

any incremental tax revenues to economic development purposes, including construction of 

new infrastructure.49 The local government can issue bonds that are secured with the tax 

revenue growth. 

46 See http://www.sustainablecommunities.gov/mission/about-us, for more information on the HUD-DOT-EPA Partnership for 

Sustainable Communities. 47 EPA. Infrastructure Financing Options for Transit-Oriented Development. 2013. 

http://www.epa.gov/smartgrowth/infra_financing.htm. 48 Editorial. “California Redevelopment Agencies, the Sequel.” Los Angeles Times. Sep. 22, 2013. 49 Dye, Richard, and David Merriman. “Tax Increment Financing: A Tool for Local Economic Development.” Land Lines. Lincoln Institute 

of Land Policy. Jan. 2006. 

Strategies to Encourage Infill Development in Distressed Communities 45

 
Attracting Infill Development in Distressed Communities: 30 Strategies 

STRATEGY 28: 

ESTABLISH A CAPITAL RESERVE FUND 

FUNDING FOR 

INFRASTRUCTURE

What? Local governments can use capital reserve funds to save money for future capital projects. 

This practice can reduce the local government’s debt burden by using cash for a portion of 

the cost. A capital reserve fund has a defined purpose, making it different from a rainy day 

fund, which is used to cover unforeseen emergencies or budget shortfalls. 

Why? Local governments can typically plan ahead for capital improvements, but they budget year 

to year. They can save up for planned capital improvements through a capital reserve fund, 

which can reduce their reliance on debt. Distressed communities might have lower bond 

ratings, which results in higher financing costs and makes saving for major capital 

improvements more attractive. However, many distressed communities struggle to pay 

monthly bills and might not be able to set funds aside. 

How? State law governs municipal finance, so the rules for establishing this type of fund vary from 

state to state. Often the local government will need to establish the fund and designate 

specific purposes or projects on which to spend the savings. Once established, the local 

government can make regular transfers to the reserve fund. 

Local governments can also consider partnering with utility companies to make capital 

improvements that will make an area more attractive to investment. Utility companies have 

a vested interest in community development. The infrastructure that delivers their service 

might be underutilized.50

STRATEGY 29: 

CREATE A SPECIAL ASSESSMENT DISTRICT

FUNDING FOR 

INFRASTRUCTURE

What? Local governments commonly use special tax assessments on a property to pay for 

infrastructure improvements that benefit the property. The special assessment is often applied 

to the properties in a district in proportion to their individual benefit from the improvements. 

Why? Infrastructure is expensive and a large burden to developers and local governments alike. 

Special assessments shift the infrastructure burden to the property owners who benefit from 

improvements. Developers are attracted to special assessment financing because the cost of 

infrastructure improvements is kept off of the balance sheet for the overall development and 

thus does not hinder the developer’s ability to obtain loans to finance the project. 

While they are easy to establish for greenfield projects where the developer is often the only 

property owner, special assessment districts can be difficult to establish in infill areas with 

many property owners. Special assessment district financing can also be difficult to use in 

distressed communities with low property values. In these areas, borrowing against future 

property taxes might not yield enough funding to pay for infrastructure improvements. 

Because of these factors, distressed infill areas might first consider establishing a Tax 

Increment Financing District (Strategy 27).

50Millonzi, Kara. “Financing Capital Projects—Part I: ‘Saving’ Through Fund Balance and Capital Reserve Funds.” UNC School of 

Government. Oct. 7, 2012. http://canons.sog.unc.edu/?p=6869. 

Strategies to Encourage Infill Development in Distressed Communities 46

 
Attracting Infill Development in Distressed Communities: 30 Strategies 

STRATEGY 29: 

CREATE A SPECIAL ASSESSMENT DISTRICT

FUNDING FOR 

INFRASTRUCTURE

How? Financing tools such as special assessment districts are highly regulated by state 

governments, and the process for creating one will vary from state to state. It often requires 

several steps, including creating an infrastructure plan that lays out what the assessment 

revenue is buying and getting approval from the property owner or owners in the district. 

Often a supermajority of owners, such as two-thirds, must vote in favor of the special 

assessment. The infrastructure plan can be a useful marketing tool to generate support. 

Where multiple property owners are involved, the local government might want to find one 

property owner in the proposed district to be a champion and help conduct outreach to 

build support. Once the local government approves the district, it can issue revenue bonds 

against the special assessment.51 

Local governments interested in special assessment financing might also analyze the 

borrowing capability of the proposed district relative to needed improvements. A key 

question to answer is whether the anticipated revenue will be sufficient. 

STRATEGY 30: 

GENERATE REVENUE THROUGH NAMING RIGHTS AND ADVERTISING

FUNDING FOR 

INFRASTRUCTURE

What? Local governments can use naming rights and advertising to generate revenue from assets 

they own, such as parks, arenas, public transit vehicles, land, and buildings. These 

strategies are appealing for many communities because they can generate revenue from 

the private sector outside of the usual tax channels. 

Why? Many cities now offer naming rights and advertising to companies or other sponsors to 

offset the costs of a capital improvement or program or to generate ongoing revenue. 

These strategies can support infill development by helping offset the cost of new parks or 

other public facilities and services that are needed to serve new residents. 

How? Local governments can sell naming rights, also known as sponsorships, for a wide variety 

of services and facilities such as parks, stadiums, libraries, or other major capital 

investments. They could also sell pavers or other recognition for smaller capital 

improvements, such as a new downtown streetscape. 

In addition, local governments can sell advertising space on billboards, in public facilities, 

or in its transit vehicles. The revenue can help cover the cost of a service, or it can benefit 

a particular area. For example, revenue from billboards in or near the downtown could be 

dedicated to infrastructure improvements linked to the community’s infill development 

plan or vision. While people might object to using a public facility to promote private 

interests or simply to a billboards’ appearance, this strategy can generate substantial 

revenue to benefit a community.

51 Millonzi, Kara A. “An Overview of Special Assessment Bond Authority in North Carolina.” Local Finance Bulletin. No. 40. UNC School 

of Government. Nov. 2009. 

Strategies to Encourage Infill Development in Distressed Communities 47

 
Attracting Infill Development in Distressed Communities: 30 Strategies 

STRATEGY 30: 

GENERATE REVENUE THROUGH NAMING RIGHTS AND ADVERTISING

FUNDING FOR 

INFRASTRUCTURE

Before selling naming rights, the government should set policies about what it is willing to 

sell and reasonable rates. Another important step is to identify existing or planned assets 

that are appropriate for a naming rights deal or selling advertising. 

Cleveland’s first bus rapid transit (BRT) system is a good example of how a city can use 

naming rights to help pay for an infrastructure improvement that supports infill 

development. The Greater Cleveland Regional Transit Authority sold the naming rights for 

the nine-mile BRT line to The Cleveland Clinic and University Hospitals. The two health 

care providers will pay $6.25 million over 25 years to name the BRT route the HealthLine.52

The HealthLine project cost approximately $200 million, but has leveraged $5.8 billion in 

transit-oriented development in the previously distressed corridor.53

Figure 13: Cleveland’s Healthline Bus Rapid Transit. 

Photo source: Gretchen Moore.

52 Hollander, Sarah. “Clinic, UH to pay to name Euclid Corridor buses.” Cleveland Plain Dealer. Feb. 28, 2008. 

http://blog.cleveland.com/medical/2008/02/clinic_uh_pay_to_name.html. 53 Hook, Walter, Stephanie Lotshaw, and Annie Weinstock. More Development for Your Transit Dollar, An Analysis of 21 North 

American Transit Corridors. Institute for Transportation and Development Policy. 2013. 

Strategies to Encourage Infill Development in Distressed Communities 48

 
Attracting Infill Development in Distressed Communities: 30 Strategies 

Appendix A 

Appendix A includes self-assessment questions for each strategy to help local governments determine 

which strategies are appropriate for their context. By working through the self-assessment questions 

and using the strategies in this guide, local governments should have both the knowledge to decide if 

their community is ready to pursue infill development in distressed communities and the tools to help 

them do so successfully. Strategy 1 lays the foundation for the strategies that follow.

Self-Assessment Questions for Strategies 

The following tables include 30 strategies for encouraging infill development. Each strategy comes with 

a series of questions for which a “yes” answer indicates support for the strategy and a “no” indicates 

that the community may need to make some policy, code, or other changes to make the strategy 

feasible. However, this community readiness assessment is not an exact science. More “yes” than “no” 

answers may indicate a readiness to apply the particular strategy. In general, the questions are simply 

designed to give the user some food for thought as he or she thinks about which strategies are most 

suitable given the circumstances.

PRIORITIES

Strategy 1: Identify Priority Infill Development Areas

POLICIES

Strategy 2: Expedite Development Review

Strategy 3: Set Tiered Impact Fees

Strategy 4: Ease Parking Requirements in Infill Locations

Strategy 5: Adopt Flexible Codes

Strategy 6: Provide Clear Rules for Renovating Historic Buildings

Strategy 7: Adopt an Adaptive Reuse Ordinance

Strategy 8: Offer Density Bonuses in Infill Locations

Strategy 9: Put Public Offices in Infill Locations

PARTNERSHIPS

Strategy 10: Seek State and Regional Partners

Strategy 11: Identify Key Anchor Institutions

Strategy 12: Explore Employer-Assisted Housing

Strategy 13: Engage Philanthropic Organizations

Strategy 14: Create a Public Sector-Developer Liaison 

Strategy 15: Create a Local Developer Capacity-Building Program

PERCEPTION

Strategy 16: Strengthen Code Enforcement

Strategy 17: Build Complete Streets

Strategy 18: Create a Business Improvement District

Strategy 19: Hold Public Events and Festivals in Infill Locations

Strategy 20: Initiate a Neighborhood Identity Campaign

FOUNDATION

Appendix A 49
Attracting Infill Development in Distressed Communities: 30 Strategies 

FUNDING FOR INFILL

Strategy 21: Enact a Property Tax Abatement Program for Infill Locations

Strategy 22: Implement a Land Banking Program

Strategy 23: Implement a Land Value Tax

Strategy 24: Attract Private Equity

Strategy 25: Encourage Community Development Corporations

Strategy 26: Encourage Crowdfunding for Projects and Businesses in Priority Infill 

Development Areas 

FUNDING FOR INFRASTRUCTURE

Strategy 27: Create a Tax Increment Financing District

Strategy 28: Establish a Capital Reserve Fund

Strategy 29: Create Special Assessment Districts

Strategy 30: Generate Revenue through Naming Rights and Advertising

FUNDING

Appendix A 50
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-1. Assessment Questions for Strategy 1

Identify Priority Infill Development Areas

Key Questions Yes/No Why Is This Important?

Do developers typically need a zoning 

variance or special use permit for infill 

projects, or are they required to pursue 

planned unit developments?

Yes ☐

No ☐

The type of development a community wants 

should be the easiest to permit. Developers 

should be able to build the desired infill 

products “by right,” without special exceptions 

or complex approval processes.

Has the community identified priority areas 

for infill or other growth (e.g., in a 

comprehensive plan, vision, or other 

document with broad public support)?

Yes ☐

No ☐

A community vision or a comprehensive plan 

can provide direction on where and how to 

grow and invest. 

Are there public or private investments in 

transportation, infrastructure, or 

beautification planned for potential infill 

areas?

Yes ☐

No ☐

Taking into account other planned 

investments when prioritizing areas for infill 

can help leverage limited public dollars. 

Is there publicly owned property in potential 

infill areas?

Yes ☐

No ☐

Publicly owned land can be used to reduce the 

cost of infill development and make it more 

financially feasible. The process of identifying 

priority infill areas should take into account 

publicly owned land that might be used for 

this purpose. 

Is there consensus in the community to 

redevelop infill areas?

Yes ☐

No ☐

Community support will be important as infill 

projects go through the visioning, planning, 

and implementation phases.

Are portions of the community walkable, 

transit-accessible, compact, and/or 

historically significant?

Yes ☐

No ☐

Areas with these attributes often are 

attractive, ready, and suitable for infill 

development. 

Are there infill areas with a substantial 

amount of vacant land or already assembled 

parcels?

Yes ☐

No ☐

Large-scale infill development can be easier 

when the land has a single owner.

Does the local government have a placebased economic development strategy? 

Yes ☐

No ☐

A place-based strategy calls for strengthening 

the local economy by capitalizing on existing 

assets and distinctive community features. 

Does the local government have 

relationships with any national organizations 

that can provide financial assistance?

Yes ☐

No ☐

Grant funding can start or improve a project or 

program.

Appendix A 51
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-2. Assessment Questions for Strategy 2

Expedite Development Review

Key Questions Yes/No Why is this Important?

Is mixed-use and higher-density infill 

development allowed by right? 

Yes ☐

No ☐

The local government should have zoning that 

allows the types of infill projects it wants to 

encourage. Expedited development review is 

not as useful to a developer who must go 

through a lengthy process to obtain a zoning 

variance or wait for the local government to 

update a zoning district. 

Does the state government have incentives 

or exemptions for infill development in any 

permit requirements, such as 

environmental review or stormwater 

permitting? 

Yes ☐

No ☐

The state’s policies can strengthen the local 

government’s efforts. Local governments

might work with the state to establish state 

incentives that expedite development review 

and permitting. 

Does the local government have authority 

under state law or local ordinance to 

expedite development review in one 

location over another? 

Yes ☐

No ☐

This action might require state enabling 

legislation.

Has the local government identified the time 

it takes to conduct development review as a 

problem that should be addressed? 

Yes ☐

No ☐

Expedited reviews in infill locations can be an 

incentive for developers by reducing time and 

costs. 

Has the local government collected data on 

and analyzed the fiscal, environmental, 

transportation, and other impacts of infill 

development relative to greenfield 

development? 

Yes ☐

No ☐

These data can help the local government 

justify expedited development review for infill 

areas. 

Is there a local vision or comprehensive 

plan in place that guides where infill 

development should go and what it should 

look like? 

Yes ☐

No ☐

The local government can build community 

support for infill if a clear vision or strategy exists 

that the community already shaped and 

supports. 

Does the local development community 

support encouraging infill development? 

Yes ☐

No ☐

Expediting the development review process for 

some areas over others could create friction in 

the development community. Engaging private 

developers early can help build consensus for a 

community growth vision. 

Has the local government identified specific 

zones or districts in which to encourage 

infill development? 

Yes ☐

No ☐

Identifying such zones in a policy statement 

such as a comprehensive plan adopted by the 

governing entity is an important early step and 

is a prerequisite for other strategies described 

in this report.

Has the local government identified design 

guidelines and the types of uses it seeks to 

encourage in these zones? 

Yes ☐

No ☐

The character and type of development that 

the community wants in infill locations should 

be clear to both the private sector and 

reviewing agencies. Following the guidelines 

can be a requirement for expedited review. 

Appendix A 52
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-3. Assessment Questions for Strategy 3

Set Tiered Impact Fees

Key Questions Yes/No Why Is This Important?

Are local governments allowed to establish 

tiered impact fees under state law? 

Yes ☐

No ☐

This action might require state enabling 

legislation.

Does the local government charge impact 

fees to cover costs associated with 

development, such as new schools? 

Yes ☐

No ☐

This strategy is not an option unless the 

community has impact fees or is planning to 

assess them.

Has the local government studied the 

difference in fiscal, social, and other costs 

between infill and greenfield development? 

Yes ☐

No ☐

The local government might want to provide 

specific data explaining why areas targeted for 

reduced impact fees are helping save money 

and offset the reduced revenue from the 

lower fees. In addition to the difference in 

infrastructure costs between infill and 

greenfield development, it might be less 

expensive to provide public services to close-in 

neighborhoods than serve areas on the 

periphery.

Is there consensus among local elected 

officials to give priority to infill 

development?

Yes ☐

No ☐

This strategy could generate political 

controversy because it benefits some 

geographic areas and not others. Political and 

community support for underlying infill goals is 

important.

Do local developers support the local 

government providing financial incentives 

for infill development but not greenfield 

development? 

Yes ☐

No ☐

Developers pay the impact fees, making their

support critical. Involving local developers in 

identifying priority infill development areas 

can help garner support for infill.

Is market demand much greater for 

greenfield development than infill 

development? 

Yes ☐

No ☐

This strategy and other financial incentives will 

likely work better in a community where 

demand for infill development is lower than 

for greenfield development. Financial 

incentives are less important if the market 

favors infill or is balanced between the two. 

Appendix A 53
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-4. Assessment Questions for Strategy 4

Ease Parking Requirements in Infill Locations

Key Questions Yes/No Why Is This Important?

Does local zoning set minimum parking 

requirements? 

Yes ☐

No ☐

Minimum parking requirements can produce 

more parking than is necessary. Moving from a 

minimum to a maximum could be a good 

incentive for infill.

Does the local government require 

developers to reduce vehicle travel 

generated by their projects? 

Yes ☐

No ☐

Infill locations with lower parking minimums or 

with maximums could be more attractive to 

developers because it is easier to reduce 

vehicle travel generated by these places.

Has the local government studied parking 

supply and demand for infill priority areas? If 

so, is there already an oversupply? 

Yes ☐

No ☐

If an oversupply already exists, the local 

government can justify reduced parking 

requirements, which in turn help reduce the 

cost to develop in infill locations.

Does the community use innovative parking 

policies such as shared parking or parking 

cashout?54

Yes ☐

No ☐

These policies demonstrate the local 

government’s willingness to explore 

alternatives that are more finely calibrated to 

local conditions, which can reduce developers’ 

costs.

Are residents and businesses amenable to 

charging for on-street parking? 

Yes ☐

No ☐

Free parking creates high demand for driving 

and parking. It can be difficult to charge for 

parking if the community expects parking to be 

free.

Can bicyclists, pedestrians, and transit riders 

already access any priority infill areas? 

Yes ☐

No ☐

These areas could be suitable for a pilot 

program that reduces parking requirements.

Does parking supply exceed demand in any 

priority infill areas? 

Yes ☐

No ☐

New development might be able to offer 

fewer spaces than previously required. 

Is car sharing available in any priority infill 

areas?

Yes ☐

No ☐

Car sharing can allow people to own fewer 

cars, which can reduce parking demand. 

Are current parking requirements an 

impediment to infill, particularly in 

downtown areas?

Yes ☐

No ☐

High minimum parking requirements raise the 

cost and complexity of infill development.

Is transit a convenient option for travel to, 

from, and within infill areas? 

Yes ☐

No ☐

High-quality, reliable transit can reduce vehicle 

travel demand and parking needs.

54 “Parking cashout” describes programs in which employees can take a cash payment in lieu of a subsidized parking space. For more 

information, see: California Environmental Protection Agency Air Resources Board. California’s Parking Cash-Out Law. 

http://www.arb.ca.gov/planning/tsaq/cashout/cashout.htm. Accessed Dec. 3, 2014. 

Appendix A 54

 
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-5. Assessment Questions for Strategy 5

Adopt Flexible Codes

Key Questions Yes/No Why Is This Important?

Does the local comprehensive plan call for 

providing more flexible zoning or design 

regulations for infill areas? 

Yes ☐

No ☐

The comprehensive plan typically establishes 

policies that influence zoning and design 

regulations. Having a strong plan in place is 

critical to developing flexible codes.

Does the local government have the 

expertise and staff time needed to revise its 

development codes? 

Yes ☐

No ☐

Staff time and expertise to amend zoning and 

other development codes can be time 

consuming and costly. Time and expertise 

needed should be estimated ahead of time to 

ensure the local government has sufficient 

resources.

Has the local government audited its zoning 

and subdivision codes to identify key 

elements that encourage or discourage 

mixed-use, compact development in infill 

locations? 

Yes ☐

No ☐

Audit tools are available to help identify the 

specific code fixes that could have the biggest 

impact. See the footnote on this page for a 

couple of examples.55 56

Does the local government have a districtlevel or zone-based transportation policy 

for infill areas that can support flexible 

zoning and design? 

Yes ☐

No ☐

The transportation needs of priority infill 

areas, which are more likely to have compact 

development patterns with a mix of uses, are 

different than those of lower density autooriented areas. A comprehensive 

transportation policy for priority infill areas 

should support a multimodal approach to 

accommodating travel in the area. Parking 

standards would also be relaxed, creating 

opportunities for developers to build or 

rehabilitate historic buildings without needing 

to adhere to standards not meant for infill 

projects. 

Does the community understand the 

benefits and attributes of flexible codes and 

how they support infill development? 

Yes ☐

No ☐

The local government might need to educate 

the public about the value and application of 

flexible codes in an infill area before 

embarking on a zoning code update.

Does the local government have design 

guidelines or a master plan that can serve 

as the basis for form-based or other flexible 

code provisions? 

Yes ☐

No ☐

Codes that emphasize building form over use 

require a strong design framework to help 

identify the design features and guiding 

principles that matter most. 

55 EPA has published a pair of guides that communities of different types and sizes can use to assess and improve their codes. These 

are “Essential Smart Growth Fixes for Urban and Suburban Zoning Codes” and “Essential Smart Growth Fixes for Rural Planning, 

Zoning, and Development Codes.” They are available at http://www2.epa.gov/smart-growth/essential-smart-growth-fixescommunities. 56 Smart Growth America offers several audit tools on its website, including a Quick Diagnostic, a Smart Growth Policy Audit, and a 

Smart Growth Code and Zoning Audit. Find these tools and more information by visiting 

http://www.smartgrowthamerica.org/leadership-institute/implementation-tools. 

Appendix A 55

 
Attracting Infill Development in Distressed Communities: 30 Strategies 

Key Questions Yes/No Why Is This Important?

Do local codes raise development costs and 

require developers to seek special approval 

for projects that do not meet the exact 

code requirements? 

Yes ☐

No ☐

Developers can incur higher predevelopment 

costs while working to obtain approval for 

projects that are inconsistent with zoning.

Do elected officials place a high priority on 

attracting and retaining businesses? 

Yes ☐

No ☐

Flexible codes can be more business friendly 

by allowing property owners to change the use 

in response to economic conditions.

Appendix A 56
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-6. Assessment Questions for Strategy 6

Provide Clear Rules for Renovating Historic Buildings

Key Questions Yes/No Why Is This Important?

Does the local government minimize 

regulatory or cost uncertainties to 

encourage developers to undertake historic 

building rehabilitation and reuse projects? 

Yes ☐

No ☐

Regulatory tools such as overlay zoning 

districts or special codes for historic structures 

can give developers more certainty about 

what is expected from them when they work 

on historically significant buildings.

Has the local government adopted a policy 

of encouraging rehabilitation and reuse of 

historic buildings? 

Yes ☐

No ☐

This indicates that elected officials might be 

willing to provide incentives or overhaul 

ordinances to encourage historic building 

rehabilitation. 

Does the community have a substantial 

number of historic buildings in priority infill 

areas? Has the community conducted an 

inventory of historic structures that should 

be preserved? 

Yes ☐

No ☐

Conducting an inventory can be the first step 

in identifying buildings, public spaces, and 

other culturally and architecturally significant 

features for which the community can then 

create specific guidance and rules.

Does the local government provide clear 

rules for developers who propose 

rehabilitating or reusing a historic building? 

Yes ☐

No ☐

Clear rules reduce subjectivity and give the 

developer more certainty about what is 

permitted or desirable. They can reduce 

delays, which saves money in the 

predevelopment stage.

Does the local government have a separate 

process for approving adaptive reuse of 

historic buildings? 

Yes ☐

No ☐

Depending upon the nature and extent of its 

existing historic resources, the local 

government might find an alternative 

permitting and approval process helpful to 

provide clarity and certainty on renovating and 

reusing historic structures.

Is there consensus in the community about 

preserving and reusing historic structures? 

Has the community identified the features, 

cultural, and historic aspects it values most? 

Yes ☐

No ☐

Historic resources often evoke strong 

emotions from the community. Conducting 

early outreach and building consensus with 

the community can help the local government 

secure support for building infill in historic 

neighborhoods.

Do the existing historic buildings and public 

spaces provide a precedent and good basis 

for creating a compact, mixed-use 

community form? 

Yes ☐

No ☐

Local governments have limited resources. 

Before deciding to revise zoning and 

development codes, the local government 

should consider whether its historic districts 

and concentrations of historic buildings 

overlap with its priority infill areas. 

Are developers able to make an attractive 

return on investment with adaptive reuse 

projects under existing regulations? 

Yes ☐

No ☐

Developers will not repurpose or rehabilitate 

historic buildings if they cannot make a 

competitive return on investment. An adaptive 

reuse ordinance can make these projects more 

economically viable.

Appendix A 57
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-7. Assessment Questions for Strategy 7

Adopt an Adaptive Reuse Ordinance

Key Questions Yes/No Why Is This Important?

Has the local government established any 

historic overlay or adaptive reuse districts? 

Yes ☐

No ☐

An adaptive reuse ordinance can be applied 

within a specific district.

Are proposals to reuse a historic building 

subject to different requirements than new 

construction? 

Yes ☐

No ☐

Applying new construction standards to reuse 

and redevelopment of historic buildings can 

make these projects economically infeasible.

Does the city or town have a local historical 

society that is interested in preserving 

historic buildings?

Yes ☐

No ☐

These groups show the community’s concern 

for historic buildings and can be advocates for 

policies that preserve historic structures while 

encouraging new development. 

Have elected officials made redevelopment 

of historic buildings a priority? 

Yes ☐

No ☐

Investing time and energy in revising codes 

requires political support.

Does the community have many vacant 

historic buildings in infill areas? 

Yes ☐

No ☐

Widespread vacancy in these buildings could 

indicate that they are not economically viable 

under existing zoning regulations.

Do current zoning and development codes 

enable cost-effective redevelopment of 

historic buildings? 

Yes ☐

No ☐

Holding older buildings to the same code 

requirements as new construction can be an 

obstacle because these codes often enforce 

suburban standards for density, parking 

requirements, and dwelling size. These 

standards are often impossible to meet when 

rehabilitating a historic urban building. 

Is the market demand for infill strong 

enough to support the cost of adaptive 

reuse? 

Yes ☐

No ☐

Renovating older buildings that have long 

been vacant is often expensive and risky due 

to unforeseen and unpredictable costs; market 

demand needs to be sufficient to support 

these costs.

Appendix A 58
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-8. Assessment Questions for Strategy 8

Offer Density Bonuses in Infill Locations

Key Questions Yes/No Why Is This Important?

Has the local government identified in its 

comprehensive plan or future land use plan 

where it supports increasing density? 

Yes ☐

No ☐

The local government should plan increased 

density carefully with public input to minimize 

potential impacts to neighborhood character, 

transportation, and facilities.

Does the local government have a 

comprehensive or small area plan that is the 

basis for amenities and/or features to 

request in exchange for higher density? 

Yes ☐

No ☐

Density bonuses are typically given in 

exchange for a public amenity, better building 

design, or other features that benefit the 

immediate neighborhood or the community as 

a whole.

Do elected officials support higher-density 

development in the downtown and other 

neighborhoods targeted for infill? 

Yes ☐

No ☐

Elected officials will need to support policies 

promoting infill.

Do residents in areas targeted for infill 

support higher-density development? 

Yes ☐

No ☐

Residents might want to maintain the 

neighborhood’s look and feel and might be 

concerned about the change that more 

development will bring. Engaging residents 

early and often in creating a vision and plan for 

infill development can help ensure that they 

understand how this development could 

improve the neighborhood and that the 

development responds to their desires and 

concerns.

Do areas targeted for higher density have 

transportation capacity or offer alternatives 

to driving, such as transit, car sharing, or 

bike facilities? 

Yes ☐

No ☐

Higher-density development generates more 

trips by residents and workers. By offering 

more transportation choices, the local 

government can prepare an area for the 

increased travel and respond to neighborhood 

concerns about traffic.

Does the community have existing highdensity mixed use projects? 

Yes ☐

No ☐

These projects can be examples for future 

development and demonstrate that the 

community supports more compact 

development.

Is the high cost of land an obstacle to infill 

development? 

Yes ☐

No ☐

Density bonuses can help overcome high land 

costs but might be less useful in areas with 

plenty of inexpensive land.

Will market demand support higher density 

development than is allowed under the 

existing zoning? 

Yes ☐

No ☐

Density bonuses work only if the community 

accepts higher density development and there 

is demand from people and businesses for a 

higher density product. 

Appendix A 59
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-9. Assessment Questions for Strategy 9

Put Public Offices in Infill Locations

Key Questions Yes/No Why Is This Important?

Do local and state government 

policies support putting public 

buildings in infill or downtown 

locations? 

Yes ☐

No ☐

The location decisions of government facilities are 

less driven by the market than private industries. As a 

result, government offices can choose to locate in 

areas where their presence can stimulate the 

economy.

Does the local government have 

criteria for deciding where to locate 

facilities? 

Yes ☐

No ☐

A local government often chooses locations based 

purely on cost. It might want to revisit facility location 

criteria to ensure that they consider the social and 

environmental benefits of infill locations.

Do many local government workers 

live near the priority infill areas? 

Yes ☐

No ☐

Moving a public office to an infill location could create a 

longer commute for some workers, which should be 

one of the factors considered before the move. 

Strategies such as an employer-assisted housing 

program can help workers live close to their offices.

Do the areas targeted for infill need 

additional office space? 

Yes ☐

No ☐

The balance of housing and jobs could influence the 

local government’s decisions. If the area has many 

more jobs than households, the local government 

might want to invest more in housing.

Do the areas targeted for infill have 

parcels of sufficient size and quality 

for the government’s needs? 

Yes ☐

No ☐

Government facilities vary in their space 

requirements, security needs, and function. As a 

result, some public agencies or offices can more easily 

locate to a compact infill location than others. A large 

high-security archive with few employees may not 

complement a priority infill area, for example.

Is the local government considering 

construction of a new municipal 

building? 

Yes ☐

No ☐

Public facilities can bring employees to an infill area, 

increasing demand for shops, services, and housing.

Does the agency or division that 

would be in a new municipal building 

provide a service that lends itself to 

an infill or downtown location? 

Yes ☐

No ☐

Some government functions are particularly well 

suited to compact infill areas, such as library 

branches, health clinics, social service offices, and 

small business assistance centers. Typically, facilities 

that generate foot traffic and have a high number of 

employees who would patronize neighborhood 

businesses are well suited. Some functions of 

government are better handled outside of compact 

development areas.

Does the infill area have available 

office space that meets the agency’s 

needs? 

Yes ☐

No ☐ Public agencies or divisions can fill vacant space.

Are any federal agencies or offices 

already located in the community? 

Yes ☐

No ☐

Executive Order 13514 calls on the federal 

government to consider siting facilities in central 

cities and town centers. 

Appendix A 60
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-10. Assessment Questions for Strategy 10

Seek State and Regional Partners

Key Questions Yes/No Why Is This Important?

Do any state or regional funding programs 

(for infrastructure or development) have 

policies or criteria that favor infill 

development projects? 

Yes ☐

No ☐

States and regional agencies such as 

metropolitan planning organizations (MPOs) 

can align their funding with goals, such as 

promoting infill development. 

Does the MPO (or state department of 

transportation in areas without an MPO) give 

funding priority to transportation projects 

that support infill development? 

Yes ☐

No ☐

The MPO is the gatekeeper of federal 

transportation funding for the region, and its 

long-range transportation plan sets priorities 

for projects.

Do state or regional agencies offer technical 

assistance that can help communities create 

policies and codes that support infill 

development? 

Yes ☐

No ☐

Some assistance programs fund most or all of 

the cost of hiring consultants to develop 

plans for implementing transit-oriented 

development, infill, or similar strategies.

Has the local government encouraged state 

and regional agency partners to be involved 

in its planning efforts?

Yes ☐

No ☐

Many states have programs to fund or 

finance infrastructure relevant to an infill 

development strategy. Involving state and 

regional agency partners in the planning 

phases can generate buy in for the 

community’s infill vision. 

Does the community have anchor institutions 

such as hospitals or colleges that are 

interested in economic and community 

development? 

Yes ☐

No ☐

Developers may be struggling with infill 

development projects and not meeting latent 

demand. Training for developers could help 

them gain the knowledge and resources to 

make these projects successful.

Are there state-level infrastructure 

investments targeted to developed areas or 

infill locations? 

Yes ☐

No ☐

Some states prioritize infrastructure 

investments to support broader economic 

development, transportation, environmental, 

and public health goals. Aligning local infill 

strategies with state goals can help garner 

additional resources for infill.

Does the local government qualify for any 

funding programs or additional funding 

through existing program, because it is a 

distressed community? 

Yes ☐

No ☐

Some state or regional programs are meant 

for areas that are economically distressed or 

have high concentrations of low-income 

households.

Appendix A 61
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-11. Assessment Questions for Strategy 11

Identify Key Anchor Institutions

Key Questions Yes/No Why Is This Important?

Has the local government actively engaged 

anchor institutions to foster infill? Does 

existing policy support locating major anchor 

institutions in infill areas? 

Yes ☐

No ☐

Anchor institutions are often willing and able 

to invest in projects that improve the 

community.

Has the local government compiled an 

inventory of anchor institutions and their key 

staff and leaders? Are these institutions or 

business suited for infill locations or to make 

investments in infill priority areas? 

Yes ☐

No ☐

The local government’s leadership (elected 

officials and senior staff) should meet and 

talk regularly with top officials from anchor 

institutions to develop relationships that 

could lead to these institutions having a 

greater stake in infill development in the

communities they serve.

Are there specific anchor institutions that 

would benefit from locating in areas where 

their employees could walk, bike, take transit, 

or drive shorter distances?

Yes ☐

No ☐

Medical facilities often require certain 

employees to live within a specified distance 

to ensure they are available in emergencies. 

These facilities might have an inherent 

incentive to locate in more central infill areas.

Are there any anchor institutions in or near 

the local government’s priority infill areas? 

Do they have good relationships with 

adjacent neighborhoods? 

Yes ☐

No ☐

Anchor institutions have longstanding 

investments in their locations and often can 

help revitalize their neighborhoods.

Are the anchor institutions’ strategic goals 

aligned with the local government’s goals for 

infill? 

Yes ☐

No ☐

Infill strategies might be able to help 

institutions attract and retain a competitive 

workforce, reducing employee commutes, 

and enhancing neighborhood conditions.

Does the community have community 

development corporations (CDCs) that anchor 

institutions could work with or fund? 

Yes ☐

No ☐

CDCs often lead development and 

redevelopment projects in specific 

neighborhoods. Sometimes they are led or 

supported by an anchor institution such as a 

church.

Does the anchor institution have site 

development requirements conducive to infill 

design that encourage walkability, activity 

along the street, or smaller setbacks?

Yes ☐

No ☐

The local government might need to work 

with the anchor institution to strengthen or 

create design guidelines that fit with the 

community’s vision for infill and livability 

goals.

Are the community’s anchor institutions 

financially secure?

Yes ☐

No ☐

Anchor institutions are more likely to invest 

in community development when they are 

doing well financially.

Appendix A 62
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-12. Assessment Questions for Strategy 12

Explore Employer-Assisted Housing

Key Questions Yes/No Why Is This Important?

Do local government policies support construction 

of more affordable and workforce housing?

Yes ☐

No ☐

Employer-assisted housing can help the local 

government achieve its goals in these areas. 

Is land around existing employment centers 

zoned for housing or mixed-use development? 

Yes ☐

No ☐

Employment centers often have more jobs than 

housing. Zoning that limits housing and mixed-use 

development could be a contributing factor. 

Has the local government studied the ratio of 

jobs to housing units in priority infill areas to 

determine targets for additional housing or 

commercial space in these locations? 

Yes ☐

No ☐

Understanding the magnitude of imbalance 

between jobs and housing can promote and 

inform the application of this strategy. 

Does a large share of employers’ workforce 

commute long distances?

Yes ☐

No ☐

Lengthy commute times and traffic congestion 

diminish quality of life and can make it difficult 

to retain employees. Offering housing closer to 

jobs can help foster demand in infill areas while 

reducing commute times and traffic congestion.

Does the local government understand the 

need for workforce housing, particularly for 

major employers in the area? 

Yes ☐

No ☐

The local government could reach out to major 

employers to better understand their workers’ 

housing needs. This information could inform 

an employer assisted housing program.

Do any employers in the community or region 

already have an employer-assisted housing 

program?

Yes ☐

No ☐

Existing programs can be good case studies, and 

their managers could participate in a peer 

exchange with other employers.

Are there places in the infill areas where adding 

compact housing could make the neighborhood 

more walkable? Can adding homes in the infill 

area stimulate more retail demand? 

Yes ☐

No ☐

Local governments can encourage employers to 

create employer-assisted housing programs to 

increase housing options in downtowns and other 

infill areas with more jobs than households.

Does the community have any examples of infill 

housing that meets the needs of a diverse 

workforce? 

Yes ☐

No ☐

The local government can provide to employers 

examples of infill housing that can 

accommodate all types of households and 

income levels. 

Does a large share of the community’s residents 

spend more than 30 percent of their income on 

housing? 57 Would putting affordable homes 

closer to employers help reduce the combined 

cost of housing and transportation? 

Yes ☐

No ☐

The federal government considers housing 

affordable if a household spends less than 30% 

of its budget on it. This does not take into 

account transportation costs, which are the 

second largest expenses for families and for 

which no affordability standard exists. 58

Employer-assisted housing can help make 

homeownership more affordable, and putting 

homes closer to jobs can help reduce 

transportation costs.

57 HUD considers 30 percent the level at which a household is “cost burdened” by housing. HUD. “Affordable Housing.” Accessed Mar. 

26, 2014. http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/affordablehousing. 58 H+T Affordability Index, http://www.htaindex.org; Location Affordability Portal Version 2, 

http://www.locationaffordability.info/default.aspx. 

Appendix A 63

 
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-13. Assessment Questions for Strategy 13 

Engage Philanthropic Organizations

Key Questions Yes/No Why Is This Important?

Does the local government have a strategy to 

engage philanthropic partners? 

Yes ☐

No ☐

With the local government’s backing, 

philanthropic organizations could manage or 

fund programs that support infill 

development, such as land banking or 

community development corporations.

Do local government staff and/or leaders 

have relationships with local, regional, and 

national philanthropic organizations? 

Yes ☐

No ☐

Staying informed about funding opportunities 

and new programs and connecting local 

government leadership with leadership from 

philanthropic partners can help the local 

government engage the philanthropic 

community.

Does the community have local philanthropic 

organizations focused on priority infill 

neighborhoods or issues relevant to the local 

government’s infill strategy? 

Yes ☐

No ☐

Organizations can share knowledge, provide 

expertise, and/or fund projects and 

programs.

Are there philanthropic organizations with 

missions that include revitalizing distressed 

neighborhoods, promoting walkability, or 

reducing environmental impacts, that would 

be well suited for infill locations? 

Yes ☐

No ☐

Some philanthropic entities have mission 

statements tied to specific quality of life or 

environment goals. The local government can 

demonstrate how locating in an infill area 

supports the philanthropy’s mission. 

Are local and regional philanthropic 

organizations well-funded? 

Yes ☐

No ☐

The fiscal capacity of local and regional 

philanthropic organizations will influence the 

scope of their activities and funding 

programs.

Appendix A 64
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-14. Assessment Questions for Strategy 14

Create a Public Sector-Developer Liaison

Key Questions Yes/No Why Is This Important?

Does the local government have a 

department or office where a developer 

liaison function would naturally fit? 

Yes ☐

No ☐

The local government should think about how 

this staff person would fit in an existing 

department or office to ensure she is fully 

supported and becomes integrated into the 

day-to-day operations.

Does the community have local developers 

that are interested in infill development but 

have not been able to launch these types of 

projects or secure financing? 

Yes ☐

No ☐

A liaison could direct the developers to state 

and federal financing and incentive programs 

that can help close the financing gap.

Is there community and political interest in 

partnering with the private sector to promote 

infill development? 

Yes ☐

No ☐

If the community does not already agree on 

the need and value of helping developers 

navigate complex infill projects, some 

stakeholders might oppose assistance for 

infill developers.

Have any local developers overcome 

obstacles to build an infill development 

project? 

Yes ☐

No ☐

Developers can provide valuable insight to 

the local government on market conditions 

and development challenges and 

opportunities.

Would the local development community 

benefit from more experience in developing 

compact, mixed-use products in infill 

settings? 

Yes ☐

No ☐

A developer liaison can connect local 

developers with resources to help them build 

infill projects with the design and amenities 

the community wants.

Do local developers know how to secure and 

use Low Income Housing Tax Credits or New 

Market Tax Credits? 

Yes ☐

No ☐

These programs can be intimidating for 

developers that have not worked with them, 

but they can be very valuable in making infill 

projects feasible.

Does the community have infill development 

incentives that are rarely used or are not 

sufficiently catalyzing infill development? 

Yes ☐

No ☐

Building closer developer relationships can 

promote underused programs or provide 

insight into how to make them operate more 

effectively.

Appendix A 65
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-15. Assessment Questions for Strategy 15

Create a Local Developer Capacity-Building Program

Key Questions Yes/No Why Is This Important?

Has the local government adopted a policy of 

prioritizing infill development?

Yes ☐

No ☐

Adopting a policy through a resolution, 

comprehensive plan, or some other vehicle 

indicates a willingness to invest in infill 

development.

Has the local government shown a willingness 

to financially support infill development 

when necessary? 

Yes ☐

No ☐

Financial support shows deeper commitment 

for infill than simply stating support through 

policy documents and can be a strong signal 

to the development community that infill 

projects are desirable.

Has the local government adopted a policy of 

prioritizing infill development?

Yes ☐

No ☐

Adopting a policy through a resolution, 

comprehensive plan, or some other vehicle 

indicates a willingness to invest in infill 

development.

Do local developers lack experience working 

with infill techniques and funding tools? 

Yes ☐

No ☐

Latent demand for infill development could 

indicate that local developers lack the 

knowledge and resources to make these 

projects happen, which could mean 

developers might need training.

Does the community have local developers 

that are interested in infill development but 

have not been able to launch these types of 

projects or secure financing? 

Yes ☐

No ☐

A liaison could direct the developers to state 

and federal financing and incentive programs 

that can help close the financing gap.

Do local colleges have educational programs 

that prepare students for careers as builders? 

Yes ☐

No ☐

These programs could be natural partners for 

a developer capacity-building program to 

encourage infill development.

Have any neighborhood associations or other 

civic groups supported infill projects? 

Yes ☐

No ☐

One concern developers might have about 

infill projects is the lack of community 

support or the effort required to conduct 

public meetings, present to review boards, 

and do other public outreach. Sharing success 

stories and engaging civic groups that have 

supported infill projects could help build 

public support.

Does the local government have CDCs that 

want to build projects in priority infill areas 

but lack technical capacity? 

Yes ☐

No ☐

CDCs can be instrumental in supporting infill 

development, but they have varying capacity 

and might need assistance to get started and 

build infill projects.

Appendix A 66
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-16. Assessment Questions for Strategy 16

Strengthen Code Enforcement

Key Questions Yes/No Why Is This Important?

Has the local government adopted a property 

maintenance code that includes minimum 

standards? 

Yes ☐

No ☐

The municipal code is the basis for 

enforcement activities. 

Does the local government provide incentives 

or assistance programs that help low-income 

property owners rectify code deficiencies? 

Yes ☐

No ☐

Not all code violations are the result of 

negligence. Some are caused by economic 

hardship. The local government might need 

both carrots and sticks.

Does the local government have an inventory 

of properties that includes information on 

code violations or tax delinquency? 

Yes ☐

No ☐

Concentrations of tax delinquency and code 

violations can help a local government direct 

its resources to the areas that need the most 

help.

Does the local government have staff 

dedicated to enforcing codes? 

Yes ☐

No ☐

Smaller communities might not have the staff 

to enforce codes. 

Have neighborhood organizations or 

residents petitioned the government to 

rectify code violations in their neighborhood? 

Yes ☐

No ☐

Grassroots neighborhood support for code 

enforcement can help build political support 

for initiatives that better identify code 

violations. 

Are there areas where code violations are 

particularly concentrated? 

Yes ☐

No ☐

Targeted enforcement efforts can spur lasting 

change and signal to the market that the area 

is becoming a safer investment.

Are many code violations occurring on 

properties owned by absentee land owners (a 

person that does not live at the property)?

Yes ☐

No ☐

Absentee landlords can be difficult to contact 

in regards to a code violation. Local 

governments should consider requiring them 

to provide contact information or identify a 

local party that is responsible for addressing 

code violations. 

Appendix A 67
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-17. Assessment Questions for Strategy 17

Build Complete Streets

Key Questions Yes/No Why Is This Important?

Does the local government have a complete 

streets policy? 

Yes ☐

No ☐

A complete streets policy ensures that streets 

are safe and pleasant for all users as they are 

constructed, rebuilt, or repaved.

Has the MPO adopted a complete street 

policy? 

Yes ☐

No ☐

MPOs control federal transportation funding 

in metropolitan regions. As a result, their 

policies have a large effect on what gets built. 

Does the local government link 

transportation project priorities with 

development goals? 

Yes ☐

No ☐

Transportation improvements can be an 

impetus for development.

Does the local government have a 

transportation plan or a comprehensive plan 

with a transportation element that identifies 

streets targeted for improvements?

Yes ☐

No ☐

Local governments typically spend several 

years planning and lining up funding for 

streetscape and infrastructure 

improvements. Identifying them in a 

transportation or comprehensive plan is a

first step.

Does the community have advocates for 

bicycling, walking, and public transportation? 

Yes ☐

No ☐

Advocates can help build political support for 

complete streets and provide expertise and 

ideas to engineers and planners.

Does the community have too-wide streets or 

one-way streets in priority infill areas?

Yes ☐

No ☐

One-way or too-wide streets encourage 

drivers to go faster, creating a less 

comfortable environment for people walking 

or biking. Road diets and complete streets 

infrastructure improvements could attract 

redevelopment and infill.

Does the community have compactly 

developed areas with complete streets that 

can be a template? 

Yes ☐

No ☐

It is easier to build acceptance for a new 

policy or strategy when local officials can 

point to local examples and success stories. 

Does the community have a large share of 

residents that do not have an automobile? 

Yes ☐

No ☐

Streetscape improvements can inject life and 

bring new businesses to an area, but they are 

also vital for people that do not have access 

to a car.

Appendix A 68
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-18. Assessment Questions for Strategy 18

Create a Business Improvement District

Key Questions Yes/No Why Is This Important?

Are local governments allowed to establish 

business improvement districts (BIDs) or 

special assessment districts under state law?

Yes ☐

No ☐ State enabling laws might apply.

Does the community have any distressed 

business districts in areas where it would like 

to promote infill development? 

Yes ☐

No ☐

BIDs can be an effective tool for improving 

the look and feel of business districts, which 

helps attract new investment.

Has the local government already established 

a BID in its jurisdiction? Are other property 

and business owners interested in improving 

conditions in their neighborhoods?

Yes ☐

No ☐

Local governments that have experience 

establishing a BID might find it easier to 

establish additional ones. Establishing BIDs 

requires interest and buy-in from property 

and business owners.

Have property owners and businesses 

expressed interest in establishing a BID? 

Yes ☐

No ☐

A supermajority (e.g., two-thirds) of property 

owners must often approve a BID.

Does the community have clearly defined 

neighborhood business districts or mixed-use 

areas? 

Yes ☐

No ☐

BIDs are popular for downtown areas but can 

also be useful to revitalize small business 

districts in older neighborhoods.

Do the property owners have the financial or 

human capital to support a BID? 

Yes ☐

No ☐

Funding for BID districts comes from taxing 

property owners. It is important that they 

have the funds to support a BID and the time 

and expertise to serve on the board.

Has the local government or businesses 

identified specific services that would 

improve the business climate in distressed 

districts? 

Yes ☐

No ☐

BID activities must provide concrete benefits 

that are worth the additional tax paid by 

property owners or businesses.

Can a BID raise enough tax revenue to 

support the enhanced services and 

infrastructure that will be necessary to 

improve perception and attract new business, 

such as hiring staff, marketing, street 

cleaning, or sidewalk improvements? 

Yes ☐

No ☐

The state enabling legislation, the district 

property tax base, and other local factors will 

affect tax revenue and what it can be spent 

on.

Appendix A 69
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-19. Assessment Questions for Strategy 19

Hold Public Events and Festivals in Infill Locations

Key Questions Yes/No Why Is This Important?

Does the local government support closing 

streets or parts of the community to hold 

public events and festivals? 

Yes ☐

No ☐

Communitywide events often require the 

local government to close off some streets or 

portions of a neighborhood to accommodate 

crowds.

Does the local government have rules and 

guidance for groups that would like to hold 

an event and request services such as police 

or street closures? 

Yes ☐

No ☐

The local government can promote events 

and festivals by clearly laying out the rules 

and processes for holding them.

Is the downtown area home to institutions 

such as hospitals or other major employers 

that would sponsor or support events and 

festivals? 

Yes ☐

No ☐

The support of institutions is key. Their 

operations could be disrupted, but they could 

also be key supporters through funding and 

marketing.

Does the local government want to attract 

residents to new homes in the downtown or 

priority infill areas? 

Yes ☐

No ☐

Nationwide, cities and towns have seen 

increased demand for urban living. But in 

some distressed regions, residents might not 

be aware of housing options in the 

downtown or priority infill areas. Public 

events and festivals expose residents to 

housing options and amenities in infill areas.

Is the community known for a particular 

culture, product, agricultural tradition, or 

other characteristic around which an event or 

festival could be organized?

Yes ☐

No ☐

Events can celebrate a community’s

distinctive characteristics.

Appendix A 70
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-20. Assessment Questions for Strategy 20

Initiate a Neighborhood Identity Campaign

Key Questions Yes/No Why Is This Important?

Does the city or town comprise distinct 

neighborhoods or districts? 

Yes ☐

No ☐

Distinctive neighborhoods create an identity.

If people feel particularly connected to their 

neighborhood, they might be more 

comfortable engaging in projects that 

improve the neighborhood.

Does the local government allow 

neighborhoods to have distinctive welcome 

signs at their entrance points? 

Yes ☐

No ☐

Many communities install signs along major 

routes that welcome people to each 

neighborhood.

Does the local government support public art 

installations on buildings, infrastructure, or 

streets? 

Yes ☐

No ☐

Public art can build pride in neighborhoods 

and engage residents. Examples include 

painted utility boxes, street paintings at 

neighborhood intersections, and murals.

Does the targeted neighborhood have a 

group or committee of residents that advises 

the local government on important issues? 

Yes ☐

No ☐

Successful efforts to market a neighborhood 

are often bottom-up (resident-driven) efforts 

by groups that also advise the local 

government on issues important to the 

community.

Do local businesses already incorporate the 

neighborhood’s name into their name or 

marketing? 

Yes ☐

No ☐

Businesses that use the neighborhood’s name 

could show that they and their customers

identify with and have pride in their 

neighborhood, providing a strong basis for 

encouraging more celebration of the identity.

Do the neighborhoods where the local 

government would like to promote infill 

development have distinctive architecture, 

design, public spaces, landscaping, or 

buildings? 

Yes ☐

No ☐

Many older neighborhoods that might be well 

suited for infill development have features 

that are selling points for developers and 

potential residents or businesses. Distinctive 

elements might include a natural feature, 

such as a river, or built ones, such as walkable 

streets, museums, or a commercial district. 

Is the neighborhood known for a particular 

culture, building style, or other distinguishing 

feature that could translate into a market 

premium? 

Yes ☐

No ☐

Tying the neighborhood brand or name to a 

distinctive feature can help differentiate the 

neighborhood and attract potential buyers.

Appendix A 71
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-21. Assessment Questions for Strategy 21

Enact a Property Tax Abatement Program for Infill Locations

Key Questions Yes/No Why is this Important?

Does state law allow local governments to 

use tax abatement? 

Yes ☐

No ☐

This action might require state enabling 

legislation.

Has the local government identified priority 

infill development areas? 

Yes ☐

No ☐

Tax abatement can encourage development 

and increase market demand in distressed 

neighborhoods where the local government 

wants to encourage infill. 

Would abatement be more financially 

feasible if used only in priority infill 

development areas (rather than communitywide)?

Yes ☐

No ☐

Some local governments allow abatement 

throughout their jurisdiction while others 

allow it only in targeted areas. Allowing tax 

abatement in only a few targeted areas 

would likely have less effect on tax revenues. 

Do elected officials and community members 

understand the benefits and value of tax 

abatement? 

Yes ☐

No ☐

The local government might need to educate 

elected officials and residents on this strategy 

Does the community have many vacant 

parcels in priority infill areas? 

Yes ☐

No ☐

Traditional property taxes rise when the land 

is developed. Holding the taxes steady during 

a grace period can encourage development of 

vacant land.

Are land speculators purchasing vacant 

property in priority infill areas and holding it 

in anticipation of land values increasing in the 

future? 

Yes ☐

No ☐

Property tax abatement can encourage 

landowners to improve the property since 

the improvements will not affect the tax 

value. 

Are property taxes on improvements 

discouraging investment in priority infill 

areas?

Yes ☐

No ☐

Abating the property tax on improvements 

might not be effective if taxes do not have a 

significant effect on where people and 

companies choose to invest. 

Is the local government’s property tax rate 

substantially higher than surrounding 

communities that compete for development? 

Yes ☐

No ☐

A substantially higher tax rate might justify 

abatement to level the playing field.

Are neighboring communities abating their 

taxes?

Yes ☐

No ☐

The city might need to offer an abatement to 

stay competitive.

Appendix A 72
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-22. Assessment Questions for Strategy 22

Implement a Land Banking Program

Key Questions Yes/No Why is this Important?

Does state law explicitly address land banks? Yes ☐

No ☐

This action might require state-enabling 

legislation.

If state law does not explicitly allow a land 

bank, does it allow local governments to use 

traditional land bank tools such as land 

acquisition, rehabilitation, and resale? 

Yes ☐

No ☐

The authority to create a land bank-like entity 

might exist in several different state laws.

Has the local government purchased property 

in the past to stabilize a neighborhood? 

Yes ☐

No ☐

This could indicate the local government has 

experience with some of a land bank’s key 

responsibilities.

Does the local government maintain a 

property database with information that 

indicates properties’ condition, such as code 

violations, tax delinquency, and occupancy? 

Yes ☐

No ☐

Land banks need easy access to these data to 

identify and acquire properties that are 

harming a neighborhood. 

Has the local government identified priority 

infill development areas where it would like 

to rehabilitate housing? 

Yes ☐

No ☐

Land banking can help reuse existing 

buildings in an established but distressed 

neighborhood.

Do local nonprofits, such as CDCs, purchase, 

rehabilitate, and resell distressed properties? 

Yes ☐

No ☐

A nonprofit entity could run the land bank. 

Local nonprofit housing organizations or CDCs 

might already be doing activities similar to 

those a land bank would do, which would 

allow the local government to support those 

programs instead of establishing a new 

entity.

Does the community have areas with 

concentrated abandonment or vacant lots? 

Yes ☐

No ☐

Land banking programs are particularly 

effective at stabilizing and redeveloping 

abandoned and vacant properties.

Are tax liens and other property 

encumbrances discouraging infill 

development? 

Yes ☐

No ☐

Land banks can clear properties of 

encumbrances that scare off investors and 

prepare them for sale.

Is the community’s population declining? Yes ☐

No ☐

In shrinking communities, the housing market 

might be so depressed that the local 

government decides to focus investments in 

services and infrastructure in certain places. 

The local government can use a land bank to 

take land off the market in some areas while 

promoting growth in others.

Appendix A 73
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-23. Assessment Questions for Strategy 23

Implement a Land Value Tax

Key Questions Yes/No Why is this Important?

Does state law allow a land value tax? Yes ☐

No ☐

Most states do not allow municipalities to use 

a land value tax. This action might require 

state enabling legislation.

Are land speculators holding valuable 

property in infill locations?

Yes ☐

No ☐

A land value tax encourages development of 

vacant land because taxes are based on the 

value of the land rather than the 

improvements.

Are property taxes on improvements 

discouraging investment in priority infill 

areas?

Yes ☐

No ☐

By shifting the tax burden to the value of land 

(based on highest use), property owners have 

an incentive to develop or use the land to 

cover the tax bill.

Does the community have a large number of 

land-rich, income-poor residents?

Yes ☐

No ☐

A land value tax would place a burden on 

people with valuable land holdings but low 

income (e.g., farmers and retirees). Among 

the solutions are tax credits, varied rates, and 

exemptions. 

Appendix A 74
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-24. Assessment Questions for Strategy 24

Attract Private Equity

Key Questions Yes/No Why is this Important?

Does the local government have resources to 

identify potential private equity partners with 

an interest in the community? 

Yes ☐

No ☐

The local government might need to help 

connect private equity partners with local 

developers to encourage infill projects.

Are there local professional or community 

organizations that have members with 

private equity? 

Yes ☐

No ☐

Reaching out to community leaders could 

help identify potential investors and build 

support for infill development.

Appendix A 75
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-25. Assessment Questions for Strategy 25

Encourage Community Development Corporations

Key Questions Yes/No Why is this Important?

Does the local government support nonprofit 

affordable housing organizations? 

Yes ☐

No ☐

CDCs work to advance community goals. 

Local government support and collaboration 

can strengthen community development 

projects in infill areas.

Has the local government identified creating 

jobs and affordable housing in distressed 

neighborhoods as key goals? 

Yes ☐

No ☐

CDCs can increase the supply of affordable 

housing and provide services in distressed 

communities.

Has the local government identified 

neighborhoods that it wants to stabilize and 

revitalize? 

Yes ☐

No ☐

CDCs can help the local governments 

revitalize neighborhoods.

Have the local government or community 

organizations already established CDCs in 

some neighborhoods?

Yes ☐

No ☐

Established CDCs can be mentors to new 

CDCs, and their developments can be useful 

case studies.

Is a group willing and able to start a CDC in a 

priority infill development area?

Yes ☐

No ☐

CDCs are established and managed as 

nonprofit organizations by residents or 

institutions such as a church.

Does a national nonprofit housing developer

operate in the community?

Yes ☐

No ☐

Organizations such as the Local Initiatives 

Support Corporation (LISC) or Enterprise work 

in several cities across the country and can 

help connect CDCs with financial resources.

Are there foundation or state or local 

government funding sources that CDCs can 

access?

Yes ☐

No ☐

CDCs will not only need seed money to get 

started, but also foundation, state, and local 

funding to support operations.

Appendix A 76
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-26. Assessment Questions for Strategy 26

Encourage Crowdfunding for Projects and Businesses in Priority Infill 

Development Areas

Key Questions Yes/No Why is this Important?

Do state law or regulatory processes allow 

crowdfunding for development projects? 

Yes ☐

No ☐

The U.S. Securities and Exchange Commission

was still finalizing crowdfunding regulations 

in December 2014, but several states have 

finalized their own regulations in the 

meantime.

Does the local government or state have 

programs to protect investors from predatory 

businesses that fraudulently seek money 

through crowdfunding? 

Yes ☐

No ☐

Crowdfunding can open real estate investing 

to more people, but this could bring more 

exposure to fraud. Local and state 

governments can help educate and protect 

investors.

Are key infill development stakeholders 

familiar with the concept of crowdfunding?

Yes ☐

No ☐

Community leaders and developers might

need more information about this tool.

Are CDCs or residents of priority infill areas

interested in investing directly in local 

projects?

Yes ☐

No ☐

New proposed SEC rules may allow more 

people to invest directly in local real estate 

projects without going through a professional 

investment fund. Some states already allow 

this for residents that are investing in projects 

within the state. 

Has the community had widely supported 

and economically feasible projects that failed 

to attract financing because they did not 

provide a sufficient return on investment for 

institutional investors? 

Yes ☐

No ☐

These types of projects are ideal for 

crowdfunding. They provide a return on 

investment, but one not high enough to 

attract money from traditional investors.

Appendix A 77
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-27. Assessment Questions for Strategy 27

Create a Tax Increment Financing District

Key Questions Yes/No Why is this Important?

Does state law allow local governments to 

use tax increment financing (TIF)?

Yes ☐

No ☐

This action might require state enabling 

legislation.

Has the local government identified

infrastructure needs in the proposed 

assessment district?

Yes ☐

No ☐

A majority of property owners must typically 

approve of a special assessment district. 

Having a plan for what infrastructure is 

needed and what it will cost can make it 

easier to gain support of multiple property 

owners who typically own property in an infill 

area. 

Has the community designated priority infill 

areas or declared areas blighted or 

underdeveloped?

Yes ☐

No ☐

Tax increment financing (TIF) can be used to 

build infrastructure for infill development, 

but often the local government must 

designate the area as blighted or 

underdeveloped.

Do elected officials support using debt to 

finance improvements for redevelopment? 

Yes ☐

No ☐

TIF is a popular tool for economic 

development which typically involves selling 

bonds that are backed by the incremental tax 

revenue generated by development and 

market improvement.

Are developers committed to building 

projects in the TIF district? 

Yes ☐

No ☐

The local government needs some assurance 

that development will come after the 

improvements are made.

Are portions of the community blighted or 

struggling to attract investment? 

Yes ☐

No ☐

A local government must often designate an 

area as blighted or underdeveloped to use 

TIF.

Is the developer able to pay for the 

infrastructure upfront and still have a 

financially feasible infill development project? 

Yes ☐

No ☐

TIFs can help reduce the up-front costs a 

developer pays for water, sewer, and street 

infrastructure.

Are land values high enough that tax revenue 

growth will be able to cover the cost of 

infrastructure improvements?

Yes ☐

No ☐

In areas with very low property values, even a 

significant increase in value will not generate 

sufficient revenue to pay for infrastructure or 

to service the bonds associated with the 

infrastructure.

Appendix A 78
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-28. Assessment Questions for Strategy 28

Establish a Capital Reserve Fund

Key Questions Yes/No Why is this Important?

Does state law allow local governments to 

save money in a capital reserve fund for 

infrastructure improvements? 

Yes ☐

No ☐

Each state has its own rules related to 

municipal finance.

Does the local government have a multiyear 

capital improvement program?

Yes ☐

No ☐

State enabling legislation may require the 

local government to explicitly describe how it 

intends to use the capital reserve fund.

Do elected officials prefer to not borrow for 

major capital projects? 

Yes ☐

No ☐

A local government establishes a capital 

reserve fund to reduce its debt burden when 

funding infrastructure.

Can the local government set aside revenue 

each year for future capital improvements? 

Yes ☐

No ☐

Many distressed communities are fiscally 

stressed and would have trouble setting aside 

funds.

Does the local government have a low bond 

rating? 

Yes ☐

No ☐

Low bond ratings increase borrowing costs 

and could make saving more attractive.

Appendix A 79
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-29. Assessment Questions for Strategy 29

Create Special Assessment Districts

Key Questions Yes/No Why is this Important?

Does state law allow local governments to 

use assessment district financing?

Yes ☐

No ☐

This action might require state enabling 

legislation.

Is the local government willing to take on the 

financial risk of special assessment district 

financing to support infrastructure for a 

development proposal? 

Yes ☐

No ☐

If a developer collapses and the subdivided 

properties do not sell, the local government 

could be liable for expensive infrastructure 

that the property owners are unable to cover. 

Are annual property tax increases limited by 

state or local laws? 

Yes ☐

No ☐

Some cities and towns use special assessment 

districts because of property tax caps that do 

not allow them to raise taxes to expand and 

repair infrastructure.

Does the community have a champion for 

using assessment district financing?

Yes ☐

No ☐

A local champion can keep up momentum to 

get the district approved and can help with 

the extensive public outreach that is needed. 

Are land values high enough to generate the 

funds needed for infrastructure?

Yes ☐

No ☐

Assessment district financing comes through 

an incremental tax on top of the community’s 

property tax rate. The special tax must 

generate enough revenue to support the 

bonds for the infrastructure. 

Appendix A 80
Attracting Infill Development in Distressed Communities: 30 Strategies 

Table A-30. Assessment Questions for Funding Infrastructure (Strategy 30)

Generate Revenues Through Naming Rights and Advertising

Key Questions Yes/No Why is this Important?

Does the local government have guidelines or 

policies for naming rights and advertising 

deals?

Yes ☐

No ☐

Local governments can preempt any 

undesirable sponsorship offers by clearly 

expressing the facilities and locations in 

which they are willing to sell naming rights. 

For example, a community may want to limit 

advertising in or near a public school.

Does the local government have a plan for 

spending revenue from naming rights and 

advertising?

Yes ☐

No ☐

The revenue could help offset a service, go 

toward a major capital project, or be used for 

some other purpose. Having a plan for 

spending the revenue can build support for 

the strategy.

Is the local government planning any major 

capital projects in priority infill development 

areas?

Yes ☐

No ☐

Major, highly visible capital projects could be 

particularly desirable for naming rights deals.

Has the local government identified specific 

facilities and services through which 

advertising and naming rights can be sold?

Yes ☐

No ☐

Naming rights for some services, such as 

transit lines and stations and facilities like 

stadiums, have generated significant revenue 

for many local governments.

Does the local government have an office or 

employee with the experience to administer 

a naming rights or advertising program?

Yes ☐

No ☐

Advertising policies and deals should be 

administered by someone with experience 

working in or with the advertising or media 

industries.

Does the local government have high tax 

rates relative to neighboring cities and 

towns? 

Yes ☐

No ☐

Advertising revenues generated through the 

market might be more appealing to elected 

officials than strategies that increase taxes or 

public debt.

Has the local government identified specific 

places where it is willing to sell advertising 

(such as publicly owned land that could 

display billboards)?

Yes ☐

No ☐

The community might not want to sell 

advertising in certain places, such as 

attractive landscapes or near schools.

Have businesses expressed interest in 

advertising on public property or through 

public services? 

Yes ☐

No ☐

The local government should have a sense of 

the market demand for this type of 

advertising before dedicating resources to a 

program.

Appendix A 81