MN
Minnesota House Bill HF2574

Minnesota 2025-2026 Regular Session

Minnesota House Bill HF2574

Introduced
3/20/25  

Caption

Tax increment financing; use of increment to convert vacant or underused commercial or industrial buildings to residential purposes authorized, and calculation of increment and findings required for a district converting vacant or underused property modified.

Impact

The bill is expected to enhance the development of affordable housing by incentivizing the transformation of unused or inadequately used properties into homes. This shift not only aims to address housing shortages but also to stimulate economic growth by revitalizing neighborhoods that suffer from blight. Supporters claim that facilitating the conversion process would benefit local economies and communities, while also potentially reducing urban decay, by putting underutilized spaces back into productive use. The adjustments in calculation and approval processes will streamline the use of TIF for local authorities, allowing for more effective urban planning.

Summary

House File 2574 (HF2574) aims to modify existing tax increment financing (TIF) laws in Minnesota to allow municipalities to utilize incremental tax revenues for converting vacant or underused commercial and industrial buildings into residential properties. The bill highlights the need to repurpose these types of properties, especially in urban areas like Minneapolis and St. Paul, where an abundance of vacant structures poses challenges to community development and housing availability. The proposed changes not only establish a framework for TIF usage for such conversions but also amend the calculations and findings required for approving TIF districts involved in these projects.

Contention

However, the implementation of HF2574 is not without contention. Critics voice concerns over potential misuse of TIF funds and the risk of prioritizing redevelopment over other pressing community needs such as infrastructure and services. Additionally, there are worries that without stringent regulations, such infrastructures might cater to affluent groups rather than fulfilling the needs of lower-income residents. The debate around this bill centers on finding a balance between promoting redevelopment and ensuring that such changes equitably benefit all community members.

Latest HF2574 Activity

Companion Bills

MN SF2824

Similar To Certain increment usage to covert vacant or underused commercial or industrial buildings to residential purposes authorization and certain increment calculations and findings required for a district converting vacant or underused property modification

Previously Filed As

MN SF4981

Use of tax increment from redevelopment districts to convert vacant or underused commercial or industrial buildings to residential purposes authorization and tax increment provisions modifications

MN HF4747

Property taxation; redevelopment district tax increment use authorized to convert vacant or underused commercial or industrial buildings to residential purposes, rules provided for calculating original net tax capacity of property to be converted from commercial or industrial to residential purposes, and district exemptions established to convert vacant or underused commercial or industrial purposes from the market value finding requirement.

MN HF335

Savage; tax increment financing provisions modified, and tax increment financing district special rules amended.

MN HF263

Shakopee; tax increment financing provisions modified, and tax increment financing district established subject to special rules.

MN HF4404

Eligible uses of increment from tax increment financing districts expanded to include transfers to local housing trust funds, and requirements on use of transferred increment imposed.

MN SF260

Savage tax increment financing district special rule amendments

MN HF3585

Maple Grove tax increment financing district special rules authorized.

MN SF4947

Eligible uses of increment from tax increment financing districts to include transfers to local housing trust funds expansion provision

MN SF3513

Maple Grove tax increment financing special rules authorization

MN HF1458

Fridley; tax increment financing provisions modified, special rules for use of tax increment created, and report required.

Similar Bills

MN HF4747

Property taxation; redevelopment district tax increment use authorized to convert vacant or underused commercial or industrial buildings to residential purposes, rules provided for calculating original net tax capacity of property to be converted from commercial or industrial to residential purposes, and district exemptions established to convert vacant or underused commercial or industrial purposes from the market value finding requirement.

MN SF4981

Use of tax increment from redevelopment districts to convert vacant or underused commercial or industrial buildings to residential purposes authorization and tax increment provisions modifications

MN HF948

Tax increment financing; redevelopment districts eligibility modified, renewal and renovation districts repealed, and duration limits shortened.

MN SF7

Eligibility modification for redevelopment districts

MN SF2824

Certain increment usage to covert vacant or underused commercial or industrial buildings to residential purposes authorization and certain increment calculations and findings required for a district converting vacant or underused property modification

AL HB481

Tax increment districts, redevelopment projects authorizes to continue through a subsequent tax increment district, Secs. 11-99-2, 11-99-4, 11-99-5, 11-99-6, 11-99-8, 11-99-10 am'd.

AL SB260

Tax increment districts, redevelopment projects authorizes to continue through a subsequent tax increment district, Secs. 11-99-2, 11-99-4, 11-99-5, 11-99-6, 11-99-8, 11-99-10 am'd.

WV HB2984

To revise the West Virginia Tax Increment Financing Act to authorize a county commission or municipal levying body to modify the termination times of certain districts