This bill aims to enhance housing tax credit allocations and modify certain provisions related to housing funding in Minnesota. Key changes include the requirement for the Minnesota Housing Finance Agency to reserve 50 percent of housing tax credits for qualified projects located in Greater Minnesota, with any unallocated credits becoming available for other projects after September 30 each year. Additionally, the bill introduces new definitions, such as "Greater Minnesota" and "Metropolitan area," and establishes that income from lived-experience engagement will not be considered when determining eligibility for state public assistance programs.

Furthermore, the bill modifies the aggregate bond limitation for housing projects, changing it to the greater of 30 percent of the project’s basis or the maximum supportable permanent amortizing debt, capped at 40 percent of the reasonably expected aggregate basis. The effective dates for these provisions are set for taxable years beginning after December 31, 2026, and for the bond limitation changes, effective January 1, 2027. Overall, the bill seeks to improve housing accessibility and funding mechanisms while ensuring that specific income sources do not hinder public assistance eligibility.

Statutes affected:
Introduction: 462A.40, 477A.36
1st Engrossment: 462A.40, 474A.02, 477A.35, 477A.36
2nd Engrossment: 290.0683, 462A.40, 474A.02