The bill amends Minnesota Statutes to expand the eligible uses of increment from tax increment financing (TIF) districts to include transfers to local housing trust funds. Specifically, it allows cities to allocate a portion of the tax increment to support housing initiatives, with the requirement that these funds adhere to specific income guidelines. For rental housing, the funds must benefit households earning at or below 60% of the area median income, while for homeownership purposes, the threshold is set at 120% of the area median income. Additionally, the bill imposes requirements on how the transferred increment must be allocated according to the city's established policies.

The bill also modifies existing provisions regarding expenditures outside of TIF districts. It increases the allowable percentage of increment that can be spent outside the district from ten to 15 percent, provided that the expenditures are used exclusively for housing that qualifies as low-income under federal guidelines. Furthermore, it introduces a new subdivision that clarifies that any increment transferred to a housing trust fund is no longer considered increment for reporting purposes. The effective date for these changes is the day following final enactment.

Statutes affected:
Introduction: 469.1763