The announcement made by the Department of Housing & Urban Development opens the door for the city to receive a share of $17 billion in incentives to redevelop older communities.
City officials hope to tap into funds to revive portions of Southeast San Diego, Downtown and East San Diego, Encanto and Lindbergh Field. North Park and City Heights may be added later.
Such incentives include tax credits, capital gains offsets and other perks. Businesses within the renewable communities zones are able to write off as much as $10 million for a commercial real estate development. The status will be good for 10 years.
Richard Mallory, HUD regional director, says the "renewable" status will be good for the next 10 years. It was part of the 2000 Community Renewal Tax Relief Act.
"By creating the incentives that will promote job growth and economic development, we are joining with the private sector to restore economic vitality and restore whole communities in the process." Mallory says.
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