Based on Oregon State law, TIF is limited to permanent, physical improvements and related investments within the district. This means it can help pay for things like loans or grants to businesses for building upgrades, or to property owners who want to fix or redevelop buildings. It can also fund things like buying and selling property for housing or business projects, building affordable housing, creating space for small businesses, and improving infrastructure (like parks, streets, sidewalks, and transit). TIF can also cover some project-related costs for managing these projects.

TIF cannot be used for things that aren’t physical improvements. For example, it can’t fund job training programs, business startup costs, non-physical services for renters or homeowners, or safety and cleanliness programs.

The City Council-approved set aside policy requires at least 45% of TIF resources across all TIF districts go to the Portland Housing Bureau to support affordable housing activities. The remaining 55% goes to Prosper Portland for economic and urban development.

Prosper Portland, the Portland Housing Bureau, and community work together to set a series of 5-year Action Plans throughout the life of each TIF district to determine priorities and investments based on what funds are available, what eligible projects are outlined in the TIF District Plan, and the needs of the community at that time. TIF funds can only be used for projects that match the TIF District Plan and 5-year Action Plan and can only be spent within the district.

All of the East Portland TIF districts adopted in 2024 and the Cully TIF district adopted in 2022 include a Governance Charter that requires a standing community committee to work with the City and make decisions about how to use the funds. The charter also describes the roles and responsibilities for collaboration between community members and City bureaus over the life of the district. In the Central City TIF districts adopted in 2024, the forthcoming Action Plans for each district will also establish the roles and process for community oversight of the investment of TIF.