| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to taxation; tax increment financing; expanding eligible uses of increment |
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| 3 | 3 | | 1.3 from tax increment financing districts in the cities of Minnetonka, Richfield, and |
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| 4 | 4 | | 1.4 St. Louis Park to include transfers to local housing trust funds; imposing |
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| 5 | 5 | | 1.5 requirements on use of transferred increment. |
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| 6 | 6 | | 1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 7 | 7 | | 1.7 Section 1. CITIES OF MINNETONKA, RICHFIELD, AND ST. LOUIS PARK; |
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| 8 | 8 | | 1.8TRANSFER OF INCREMENT AUTHORIZED. |
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| 9 | 9 | | 1.9 Subdivision 1.Expenditures outside district.(a) For the city of Minnetonka, or its |
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| 10 | 10 | | 1.10economic development authority, the authorization to elect to increase outside the district |
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| 11 | 11 | | 1.11expenditures under Minnesota Statutes, section 469.1763, subdivision 2, paragraph (d), is |
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| 12 | 12 | | 1.12increased to 15 percentage points. |
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| 13 | 13 | | 1.13 (b) For the city of Richfield, or its housing and redevelopment authority, the authorization |
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| 14 | 14 | | 1.14to elect to increase outside the district expenditures under Minnesota Statutes, section |
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| 15 | 15 | | 1.15469.1763, subdivision 2, paragraph (d), is increased to 15 percentage points. |
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| 16 | 16 | | 1.16 (c) For the city of St. Louis Park, or its economic development authority, the authorization |
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| 17 | 17 | | 1.17to elect to increase outside the district expenditures under Minnesota Statutes, section |
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| 18 | 18 | | 1.18469.1763, subdivision 2, paragraph (d), is increased to 15 percentage points. |
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| 19 | 19 | | 1.19 Subd. 2.Allowable use.To qualify for the increase under subdivision 1, the expenditures |
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| 20 | 20 | | 1.20must be used for transfer to a housing trust fund established pursuant to section 462C.16 |
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| 21 | 21 | | 1.21for expenditure in accordance with subdivision 3. |
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| 22 | 22 | | 1.22 Subd. 3.Increment transferred to a housing trust fund.(a) A city or authority making |
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| 23 | 23 | | 1.23a transfer under subdivision 2, must allocate the transferred increment in conformity with |
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| 24 | 24 | | 1Section 1. |
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| 25 | 25 | | 25-04318 as introduced03/03/25 REVISOR MS/AC |
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| 26 | 26 | | SENATE |
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| 27 | 27 | | STATE OF MINNESOTA |
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| 28 | 28 | | S.F. No. 2667NINETY-FOURTH SESSION |
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| 29 | 29 | | (SENATE AUTHORS: WIKLUND) |
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| 30 | 30 | | OFFICIAL STATUSD-PGDATE |
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| 31 | 31 | | Introduction and first reading03/17/2025 |
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| 32 | 32 | | Referred to Taxes 2.1the city's ordinance or policy establishing the division of funds for rental and homeownership |
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| 33 | 33 | | 2.2distributions. Money distributed under this subdivision must follow the following income |
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| 34 | 34 | | 2.3requirements: |
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| 35 | 35 | | 2.4 (1) for money used for rental housing purposes, the money must benefit households at |
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| 36 | 36 | | 2.5or below 80 percent of area median income; and |
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| 37 | 37 | | 2.6 (2) for money used for homeownership housing purposes, the money must benefit |
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| 38 | 38 | | 2.7households at or below 120 percent of area median income. |
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| 39 | 39 | | 2.8 (b) Any increment transferred for use pursuant to this subdivision is no longer considered |
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| 40 | 40 | | 2.9increment within the meaning of section 469.174, subdivision 25, and is not subject to the |
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| 41 | 41 | | 2.10annual reporting requirements imposed by section 469.175. |
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| 42 | 42 | | 2.11 EFFECTIVE DATE.This section is effective the day following final enactment. |
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| 43 | 43 | | 2Section 1. |
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| 44 | 44 | | 25-04318 as introduced03/03/25 REVISOR MS/AC |
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