MN
Minnesota Senate Bill SF1953

Minnesota 2023-2024 Regular Session

Minnesota Senate Bill SF1953

Introduced
2/20/23  

Caption

Tax increment financing housing districts in nonmetropolitan counties income restrictions removal

Impact

The implications of SF1953 on state law involve the amendment of existing statutes that regulate the qualifications for TIF housing districts. By removing income limitations, the bill could enable a wider range of projects to qualify for financing. Proponents argue that this change would support local governments and developers in creating more diverse housing options, which is crucial for attracting and retaining residents in nonmetropolitan areas. This could lead to a better balance of housing supply and demand, and encourage economic vitality across wider regions of the state.

Summary

Senate File 1953 proposes substantial changes to the tax increment financing (TIF) framework specifically regarding housing districts located in nonmetropolitan counties. The bill aims to remove certain income restrictions that currently govern these housing districts, thus potentially broadening access to tax increment financing for property developers in less populated areas of Minnesota. This legislative move is positioned as a strategy to stimulate housing development in regions that may struggle with economic growth or housing shortages.

Contention

However, the removal of income restrictions has sparked debate among stakeholders. Critics of SF1953 express concern that liberalizing the financing criteria could lead to misuse of tax increment funds, where developers might capitalize on the benefits without adequately addressing local housing needs. There are fears that this shift could prioritize private profits over community welfare, exacerbating issues such as gentrification and displacement of current residents. Additionally, some lawmakers advocate for maintaining income restrictions to ensure that tax benefits are directed toward those most in need of affordable housing.

Companion Bills

MN HF1285

Similar To Income restrictions removed for tax increment financing housing districts in nonmetropolitan counties.

Previously Filed As

MN HF1285

Income restrictions removed for tax increment financing housing districts in nonmetropolitan counties.

MN HF338

Tax increment financing; five- and six-year rules for certain districts extended, and income restrictions removed for certain housing districts.

MN SF4595

Five-and six-year tax increment financing rules for certain districts authorization; certain housing districts income restrictions removal

MN SF1952

Nonmetropolitan counties tax increment financing districts five and six year rules extension

MN HF1284

Five-year and six-year rules extended for tax increment financing districts located in nonmetropolitan counties.

MN HF1159

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 SF4947

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

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 HF948

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

MN SF2041

Increment tax financing districts eligible uses including transfers to local housing trust funds expansion provision

Similar Bills

No similar bills found.