Tax Increment Financing is one of Prosper Portland’s primary sources of urban renewal funding. Prosper Portland has been using this tool since the late 1970s. When the city defines an urban renewal boundary, the county assessor “freezes” the assessed value of real property within the urban renewal district. Urban renewal districts raise money by borrowing against future growth in property taxes. The city uses the borrowed money to pay for capital improvements, which spur more development. As the city and others invest in the urban renewal area, property values go up. The property taxes above those that were collected when the values were “frozen” – the tax increment – are used to repay the loans used for the improvements in the urban renewal area. When the urban renewal district expires in 20-25 years, the intent is to return a much higher property tax base to the tax rolls.