This 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 projects that meet certain income requirements. The bill modifies section 469.1763, subdivision 2, by increasing the allowable percentage of expenditures outside the district from ten to 15 percent for specific housing-related activities. Additionally, it introduces a new subdivision that outlines the requirements for transferring increment to housing trust funds, including income thresholds for rental and homeownership purposes.

Under the new provisions, funds allocated for rental housing must benefit households earning at or below 60 percent of the area median income, while those for homeownership must assist households at or below 120 percent of the area median income. Furthermore, any increment transferred for these purposes will no longer be considered as increment under the existing law and will not be subject to annual reporting requirements. The effective date for these changes is the day following final enactment.

Statutes affected:
Introduction: 469.1763