The bill aims to limit rent increases in certain low-income rental projects that utilize residential rental bonds in Minnesota. It amends Minnesota Statutes 2022, specifically sections 273.128 and 474A.047. Under the new provisions, a rental housing property is eligible for valuation if at least 20 percent of its units meet specific qualifications related to housing assistance, tax credits, or federal and state financial assistance. Additionally, applicants must certify to the Housing Finance Agency that they will not increase rents by more than five percent during a specified 12-month period. The bill also establishes income restrictions for households occupying these units, ensuring that their income does not exceed 60 percent of the greater of area or state median income.

Furthermore, the bill modifies the eligibility criteria for using proceeds from residential rental bonds. It retains the requirement that the proposed residential rental project must comply with income regulations under the Internal Revenue Code and introduces a new stipulation that rents at the proposed project cannot be increased by more than five percent during any 12-month period. This change aims to enhance affordability and stability for low-income tenants while ensuring that projects receiving federal assistance maintain their affordability commitments.

Statutes affected:
Introduction: 273.128, 474A.047