This bill amends Minnesota Statutes 2024, section 469.1763, 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 increases the allowable percentage of expenditures outside the district from ten to 15 percent for specific housing-related activities, including site acquisition, construction, and public improvements related to housing. Additionally, it introduces a new subdivision that outlines the requirements for transferring increment to housing trust funds, specifying that funds must benefit households at or below 60 percent of area median income for rental purposes and at or below 120 percent for homeownership purposes.

Furthermore, the bill stipulates that any increment transferred for use under the new provisions will no longer be considered increment for the purposes of existing reporting requirements. This change aims to streamline the process for cities to utilize TIF funds for housing initiatives while ensuring that the funds are directed towards affordable housing solutions. The effective date for these changes is set for the day following final enactment.

Statutes affected:
Introduction: 469.1763