Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF33 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to taxation; property; modifying requirements for class 4d(1) low-income
3	3	1.3 rental housing; amending Minnesota Statutes 2024, section 273.128, subdivision
4	4	1.4 1.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. Minnesota Statutes 2024, section 273.128, subdivision 1, is amended to read:
7	7	1.7 Subdivision 1.Requirement.(a) Low-income rental property classified as class 4d(1)
8	8	1.8under section 273.13, subdivision 25, is entitled to valuation under this section if at least
9	9	1.920 percent of the units in the rental housing property meet any of the following qualifications:
10	10	1.10 (1) the units are subject to a housing assistance payments contract under Section 8 of
11	11	1.11the United States Housing Act of 1937, as amended;
12	12	1.12 (2) the units are rent-restricted and income-restricted units of a qualified low-income
13	13	1.13housing project receiving tax credits under section 42(g) of the Internal Revenue Code;
14	14	1.14 (3) the units are financed by the Rural Housing Service of the United States Department
15	15	1.15of Agriculture and receive payments under the rental assistance program pursuant to section
16	16	1.16521(a) of the Housing Act of 1949, as amended; or
17	17	1.17 (4) the units are subject to rent and income restrictions under the terms of financial
18	18	1.18assistance provided to the rental housing property by the federal government or the state of
19	19	1.19Minnesota, or a local unit of government, as evidenced by a document recorded against the
20	20	1.20property. The restrictions under this clause must require assisted units to be occupied by
21	21	1.21residents whose household income at the time of initial occupancy does not exceed 60
22	22	1.22percent of the greater of area or state median income, adjusted for family size, as determined
23	23	1Section 1.
24	24	25-00606 as introduced11/14/24 REVISOR MS/HL
25	25	SENATE
26	26	STATE OF MINNESOTA
27	27	S.F. No. 33NINETY-FOURTH SESSION
28	28	(SENATE AUTHORS: REST, Dibble and Weber)
29	29	OFFICIAL STATUSD-PGDATE
30	30	Introduction and first reading01/16/2025
31	31	Referred to Taxes 2.1by the United States Department of Housing and Urban Development. The restriction must
32	32	2.2also require the rents for assisted units to not exceed 30 percent of 60 percent of the greater
33	33	2.3of area or state median income, adjusted for family size, as determined by the United States
34	34	2.4Department of Housing and Urban Development.
35	35	2.5 The restrictions must require assisted units to be occupied by residents whose household
36	36	2.6income at the time of initial occupancy does not exceed 60 percent of the greater of area or
37	37	2.7state median income, adjusted for family size, as determined by the United States Department
38	38	2.8of Housing and Urban Development. The restriction must also require the rents for assisted
39	39	2.9units to not exceed 30 percent of 60 percent of the greater of area or state median income,
40	40	2.10adjusted for family size, as determined by the United States Department of Housing and
41	41	2.11Urban Development.
42	42	2.12 (b) The owner of a property certified as class 4d(1) under this section must use the
43	43	2.13property tax savings received from the 4d(1) classification for one or more of the following
44	44	2.14eligible uses: property maintenance, property security, improvements to the property, rent
45	45	2.15stabilization, or increases to the property's replacement reserve account. To maintain the
46	46	2.16class 4d(1) classification, the property owner must annually reapply and certify to the
47	47	2.17Housing Finance Agency that the property tax savings were used for one or more eligible
48	48	2.18uses.
49	49	2.19 (c) In order to meet the requirements of this section, property which received the 4d(1)
50	50	2.20classification in the prior year must demonstrate compliance with paragraph (b).
51	51	2.21 EFFECTIVE DATE.This section is effective beginning with assessment year 2026.
52	52	2Section 1.
53	53	25-00606 as introduced11/14/24 REVISOR MS/HL