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47 dition to a state grant and SEPTA funds, the agency did rely on an unspecified amount of pri- vate funding. X. THE USE OF VALUE CAPTURE METHODS A. Capturing Value Created by Transit Public transit typically results in a value pre- mium that is reflected in higher property values because of proximity to transit stations and re- sulting changes in construction, density, and zon- ing.606 There are several methods for capturing the value added by transit facilities, such as TIF, special assessment districts, and development impact fees. The funding provided by value cap- ture may help pay for capital projects or defray operational expenses.607 The use of value capture depends not only on access to transit but also on favorable political and economic conditions for development.608 B. Tax Increment Financing State legislation may authorize the use of TIF to dedicate revenue from real estate taxes that exceeds a base year to financing the construction of new infrastructure or improvements to facilities or otherwise to expanding transit service.609 TIF may be used for TOD and joint development (see Section XII.E), to assemble parcels of land, for environmental clean up, or âto directly subsidize private development.â610 The TIF concept varies from state to state, but the method is intended to tax the additional increase in property values within a designated area or district benefiting from a nearby transit project.611 TIF revenues may be used on a âpay as you go basisâ or serve to secure money borrowed for a project.612 Because a transit authority may not have the authority to establish a TIF district, TIF 606 Capturing the Value of Transit, supra note 10, at 1, 7. 607 Id. at 1. 608 Id. at 18â19. 609 PFM Group, Transit Alternate Funding Options Study 12â13 (May 31, 2011), hereinafter referred to as âTransit Alternate Funding Options Study,â available at http://www.votran.org/AlternateFundingStudy_Final .pdf; Capturing the Value of Transit, supra note 10, at 21. 610 Capturing the Value of Transit, supra note 10, at 24. 611 Id. 612 Forming Partnerships to Promote TOD and Joint Development, supra note 198, at 13. âhas been used in a number of U.S. cities to fund transit-related projects.â613 TIFs may be more ac- ceptable politically than special assessment dis- tricts, discussed below, because instead of impos- ing a new tax on property owners, a TIF redirects existing or future revenue from real property taxes.614 Virtually every state authorizes TIF financ- ing.615 Chicago has at least 129 TIF districts cov- ering 30 percent of the cityâs land.616 In 2005, Pennsylvania authorized the use of TIF and Tran- sit Revitalization Investment Districts (TRID) to promote TOD, economic development, real estate development, and transportation improve- ments.617 The Dulles Silver line, which will con- nect Washington, DC, Washington-Dulles Inter- national Airport, and other locations in Virginia, is using a DB approach to project delivery par- tially funded by a TIF district supported by local area businesses in Virginia.618 C. Special Assessment Districts Another method to capture the value resulting from accessibility to transit is to create a special assessment district. Such a district permits a spe- cial tax or fee to be assessed on new development within the district that will benefit from an exten- sion of transit service to the area.619 Assessment districts may be used to finance both the capital cost of transit construction and ongoing operating costs. When used to fund transit facilities, a âtieredâ as- sessment rate is common, reflecting the greater benefits expected to accrue to properties closer to transit facilities and the lesser benefits expected to accrue to those further awayâ¦. Owner-occupied residential properties are fre- quently exempted from the assessment because it would be overly burdensome for homeowners, and consequently 613 Capturing the Value of Transit, supra note 10, at 24. 614 Id. 615 Id. 616 Id. 617 Id. at 26. The Pennsylvania âTRID legislation al- lows transit agencies to work cooperatively with local jurisdictions to create [TIF] districts around transit stops.â TRID supports the planning and implementing of TOD projects and allows for value capture strategies by transit agencies. âThe transit agency may acquire property within a TRID for the purpose of real estate development or joint development.â Id. 618 Public Transportation: Federal Project Approval Process Remains a Barrier, supra note 170, at 13. 619 Capturing the Value of Transit, supra note 10, at 21.