Tennessee already offers a financing tool that many developers and builders have not yet explored. Those who understand it may gain a meaningful competitive advantage.

The tool is called an Infrastructure Development District, or IDD. Under Tenn. Code Ann. §§ 7-84-701 et seq., developers can use IDDs to finance public infrastructure with tax-exempt bonds. Eligible improvements may include roads, water, sewer, drainage, and parks.

Special assessments repay the bonds. This structure can reduce upfront equity requirements and lower the cost of capital. Developers can also pass the assessment liens to the homebuyers who benefit from the improvements.

Launch has more than 40 years of public finance experience. Our team can walk your company through Tennessee IDD financing strategies and explain how they may apply to your project pipeline.

We are offering a complimentary virtual “Launch and Learn” tailored to your company. The session includes no sales pitch. It provides a clear explanation of how Tennessee IDDs work and whether they may fit your projects.