Local governing bodies and their residents have the power to create a Neighborhood Improvement District (NID).   A NID is a general term encompassing Residential Improvement District (RID), Industrial Improvement District (IID), Institutional Improvement District (INID) or Mixed-Use Improvement District (MID), depending on the type of properties contained in the area.  When a NID is created, the residents or property owner’s in the district have the power to implement special assessments on their properties in order to finance public infrastructure improvements. Once a NID is established, the local municipality may issue bonds and the bonds are paid off through the special assessments.

A NID can be created by a municipality itself or a municipality can be petitioned to create a one by businesses, residents, or a combination thereof within the municipality. Prior the creation of a NID, a public hearing must be conducted on the matter. Any property owner that objects to the proposed NID must do so in writing and in order to veto the plan, 40% of the benefited properties within the proposed NID must object.