Financing Public Improvement Projects
The City of Manhattan finances public improvement projects such as infrastructure for housing developments and general street improvements. Financing is obtained through the issuance of general obligation bonds that are exempt from federal and state taxes, and therefore, offer lower interest rates than private financing. These lower rates result in lower costs for improvement projects for the city and also lower housing costs for new home purchasers.
Special Assessment Fees
Financing costs are then passed on to the citizen in the form of special assessment fees. The assessment fee consists of principal and interest and is usually paid over 20 years.