HF 2353

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; property; extending the 
  1.3             education homestead credit to qualifying low-income 
  1.4             rental housing; amending Minnesota Statutes 1998, 
  1.5             sections 273.126, subdivisions 1 and 3; 273.1382, 
  1.6             subdivision 1; and 462A.071, subdivisions 1 and 6; 
  1.7             repealing Minnesota Statutes 1998, section 273.1382, 
  1.8             subdivision 1a. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1998, section 273.126, 
  1.11  subdivision 1, is amended to read: 
  1.12     Subdivision 1.  [QUALIFYING RULES.] (a) The market value of 
  1.13  a rental housing unit qualifies for assessment under class 4d if:
  1.14     (1) it is occupied by individuals meeting the income limits 
  1.15  under subdivision 2; 
  1.16     (2) a rent restriction agreement under subdivision 3 
  1.17  applies; 
  1.18     (3) the unit meets the minimum housing quality standards 
  1.19  under subdivision 4; and 
  1.20     (4) the Minnesota housing finance agency certifies to the 
  1.21  local assessor that the unit qualifies. 
  1.22     (b) A rental housing unit qualifies for the education 
  1.23  housing credit, if it meets the requirements of paragraph (a) 
  1.24  and the additional rent restriction and section 8 availability 
  1.25  agreements under subdivision 3, paragraph (d), apply to the unit.
  1.26     Sec. 2.  Minnesota Statutes 1998, section 273.126, 
  1.27  subdivision 3, is amended to read: 
  2.1      Subd. 3.  [RENT RESTRICTIONS.] (a) In order to qualify 
  2.2   under class 4d, a unit must be subject to a rent restriction 
  2.3   agreement with the housing finance agency for a period of at 
  2.4   least five years.  The agreement must be in effect and apply to 
  2.5   the rents to be charged for the year in which the property taxes 
  2.6   are payable.  The agreement must provide that the restrictions 
  2.7   apply to each year of the period, regardless of whether the unit 
  2.8   is occupied by an individual with qualifying income or whether 
  2.9   class 4d applies.  The rent restriction agreement must provide 
  2.10  for rents for the unit to be no higher than 30 percent of 60 
  2.11  percent of the median gross income.  The definition of median 
  2.12  gross income specified in this section applies.  "Rent" means 
  2.13  "gross rent" as defined in section 42(g)(2)(B) of the Internal 
  2.14  Revenue Code of 1986, as amended through December 31, 1996.  
  2.15     (b) Notwithstanding the maximum rent levels permitted, 20 
  2.16  percent of the units in the metropolitan area and ten percent of 
  2.17  the units in greater Minnesota qualifying under class 4d must be 
  2.18  made available to a family with a section 8 certificate or 
  2.19  voucher.  For applications for class 4d made before July 1, 
  2.20  1999, the required percent of units for an applicant is 
  2.21  increased to 40 percent and the maximum rent that may be charged 
  2.22  on a unit occupied by a family with a section 8 certificate or 
  2.23  voucher is limited to the fair market rent for the area, as 
  2.24  established by the United States Department of Housing and Urban 
  2.25  Development, if within the five-year period ending January 2 of 
  2.26  the assessment year: 
  2.27     (1) 40 percent or more of the units in the project or 
  2.28  development were covered by a section 8 project-based housing 
  2.29  assistance contract and the contract has been canceled or no 
  2.30  longer applies; or 
  2.31     (2) the units were in a project or development financed 
  2.32  with a direct federal loan or federally insured loan made 
  2.33  pursuant to Title II of the National Housing Act and the loan 
  2.34  has been paid or prepaid, eliminating the restrictions on rents 
  2.35  under Title II of the act. 
  2.36     (c) The rent restriction agreement runs with the land and 
  3.1   binds any successor to title to the property, without regard to 
  3.2   whether the successor had actual notice or knowledge of the 
  3.3   agreement.  The owner must promptly record the agreement in the 
  3.4   office of the county recorder or must file it in the office of 
  3.5   the registrar of titles, in the county where the property is 
  3.6   located.  If the agreement is not recorded, class 4d does not 
  3.7   apply to the property. 
  3.8      (d) The rent restriction agreement may include a provision 
  3.9   that subjects one or more of the units to additional 
  3.10  requirements that: 
  3.11     (1) the maximum allowable rent for the unit will not exceed 
  3.12  the fair market rents allowed by the United States Department of 
  3.13  Housing and Urban Development under the section 8 program; and 
  3.14     (2) 50 percent of these units must be made available for 
  3.15  families with section 8 certificates or vouchers. 
  3.16  Units subject to an agreement under this paragraph are class 4d 
  3.17  housing credit property and qualify for the education housing 
  3.18  credit under section 273.1382. 
  3.19     Sec. 3.  Minnesota Statutes 1998, section 273.1382, 
  3.20  subdivision 1, is amended to read: 
  3.21     Subdivision 1.  [EDUCATION HOMESTEAD HOUSING CREDIT.] Each 
  3.22  year, the respective county auditors shall determine the initial 
  3.23  tax rate for each school district for the general education levy 
  3.24  certified under section 126C.13, subdivision 2 or 3.  That rate 
  3.25  plus the school district's education homestead housing credit 
  3.26  tax rate adjustment under section 275.08, subdivision 1e, shall 
  3.27  be the general education homestead housing credit local tax rate 
  3.28  for the district.  The auditor shall then determine a general 
  3.29  education homestead housing credit for each homestead within the 
  3.30  county equal to 68 percent for taxes payable in 1999 and 69 64.1 
  3.31  percent for taxes payable in 2000 and thereafter of the general 
  3.32  education homestead housing credit local tax rate times the net 
  3.33  tax capacity of the homestead for the taxes payable year.  The 
  3.34  amount of general education homestead housing credit for a 
  3.35  homestead may not exceed $320 for taxes payable in 1999 and $335 
  3.36  for taxes payable in 2000 and thereafter.  In the case of an 
  4.1   agricultural homestead, only the net tax capacity of the house, 
  4.2   garage, and surrounding one acre of land shall be used in 
  4.3   determining the property's education homestead housing credit.  
  4.4   For class 4d housing credit property, the credit equals 64.1 
  4.5   percent of the general education housing credit local tax rate 
  4.6   for the school district for taxes payable in year 2000 and 
  4.7   thereafter. 
  4.8      Sec. 4.  Minnesota Statutes 1998, section 462A.071, 
  4.9   subdivision 1, is amended to read: 
  4.10     Subdivision 1.  [CERTIFICATION.] By June 30 of each year, 
  4.11  the agency must certify to local assessors the units of 
  4.12  low-income rental properties that qualify for class 4d and as 
  4.13  class 4d housing credit property under sections 273.126 and 
  4.14  273.13.  In making these certifications, the agency may rely on 
  4.15  the application and supporting information supplied by the 
  4.16  property owner as to compliance with the income limits under 
  4.17  section 273.126, subdivision 2, and satisfaction of the minimum 
  4.18  housing quality standards under subdivision 4. 
  4.19     Sec. 5.  Minnesota Statutes 1998, section 462A.071, 
  4.20  subdivision 6, is amended to read: 
  4.21     Subd. 6.  [SECTION 8, TAX CREDIT, AND RURAL HOUSING SERVICE 
  4.22  UNITS.] (a) The agency may deem units as meeting the 
  4.23  requirements of section 273.126, but excluding subdivision 3, 
  4.24  paragraph (d), and this section, if the units: 
  4.25     (1) are subject to a housing assistance payments contract 
  4.26  under section 8 of the United States Housing Act of 1937, as 
  4.27  amended; 
  4.28     (2) are rent and income restricted units of a qualified 
  4.29  low-income housing project receiving tax credits under section 
  4.30  42(g) of the Internal Revenue Code of 1986, as amended; or 
  4.31     (3) are financed by the Rural Housing Service of the United 
  4.32  States Department of Agriculture and receive payments under the 
  4.33  rental assistance program pursuant to section 521(a) of the 
  4.34  Housing Act of 1949, as amended. 
  4.35     (b) The agency may certify these deemed units under 
  4.36  subdivision 1 based on a simplified application procedure that 
  5.1   verifies the unit's qualifications under paragraph (a). 
  5.2      (c) The agency may deem that a unit meets the requirements 
  5.3   for class 4d education housing credit property, if the unit is 
  5.4   subject to a housing assistance payment contract under section 8 
  5.5   of the United States Housing Act of 1937, as amended. 
  5.6      Sec. 6.  [REVISOR INSTRUCTION.] 
  5.7      In the next edition of Minnesota Statutes, the revisor of 
  5.8   statutes shall substitute "education housing credit" for 
  5.9   "education homestead credit" each place the term appears. 
  5.10     Sec. 7.  [REPEALER.] 
  5.11     Minnesota Statutes 1998, section 273.1382, subdivision 1a, 
  5.12  is repealed. 
  5.13     Sec. 8.  [EFFECTIVE DATE.] 
  5.14     Sections 1 to 5, and 7 are effective beginning for property 
  5.15  taxes levied in 1999, payable in 2000.