This bill amends Minnesota Statutes to modify the requirements for class 4d(1) low-income rental housing. Specifically, it updates the criteria for properties to qualify for this classification by clarifying that at least 20 percent of the units must meet certain qualifications, including being subject to various federal and state housing assistance programs. The bill introduces new language that specifies the income and rent restrictions for assisted units, ensuring that they are occupied by residents whose household income does not exceed 60 percent of the greater of area or state median income, and that rents do not exceed 30 percent of this adjusted income.

Additionally, the bill mandates that property owners certified as class 4d(1) must utilize the property tax savings for eligible uses such as maintenance, security, and improvements. To maintain this classification, property owners are required to reapply annually and certify their compliance with these requirements to the Housing Finance Agency. The new provisions will take effect starting with the assessment year 2025.