The bill amends Minnesota Statutes 2024, section 474A.02, subdivision 1a, to reduce the aggregate bond limitation for the allocation of private activity bonds specifically for qualifying residential rental projects. The previous limit of "up to 55" is replaced with a new calculation that establishes the aggregate bond limitation as the greater of either 30 percent of the project and the land on which it is located, or 40 percent of the reasonably expected aggregate basis of the residential rental project and the land.

Additionally, the bill includes an effective date, stating that the new provisions will take effect on January 1, 2027. This change aims to provide a more structured approach to financing residential rental projects through private activity bonds, potentially making it easier for developers to access funding while ensuring that the limitations are aligned with the financial realities of such projects.

Statutes affected:
Introduction: 474A.02