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HF 2763

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/09/2023 12:50pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/09/2023

Current Version - as introduced

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A bill for an act
relating to housing; establishing the community and household stability fund;
establishing the homeownership opportunity fund; establishing the rental
opportunity fund; apportioning the state general levy for the community and
household stability fund, homeownership opportunity fund, and rental opportunity
fund; requiring reports; amending Minnesota Statutes 2022, section 275.025,
subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 256K;
462A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [256K.50] COMMUNITY AND HOUSEHOLD STABILITY FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Fund. new text end

new text begin The community and household stability fund is established. All
money earned by the fund must be credited to the fund.
new text end

new text begin Subd. 2. new text end

new text begin Expenditures. new text end

new text begin The commissioner may issue grants, loans, or other forms of
financial assistance from the fund for expenditure on:
new text end

new text begin (1) emergency general assistance for households or individuals that are homeless or at
risk of homelessness or displacement;
new text end

new text begin (2) legal services for households or individuals that are homeless or at risk of
homelessness or displacement;
new text end

new text begin (3) outreach services for households or individuals that are homeless or at risk of
homelessness or displacement;
new text end

new text begin (4) funds to prevent or mitigate the harmful effects of community displacement; and
new text end

new text begin (5) financing the acquisition, rehabilitation, adaptive reuse, or new construction of
property to serve as emergency shelter, transitional housing, or permanent supportive
housing.
new text end

new text begin Subd. 3. new text end

new text begin Audit. new text end

new text begin The legislative auditor shall audit fund expenditures to ensure that the
money is spent for the purposes for which the money is appropriated.
new text end

new text begin Subd. 4. new text end

new text begin Reporting requirements. new text end

new text begin By January 15 each year, the commissioner shall
report on expenditures from the fund over the past year and planned expenditures of the
fund in the coming year to the chairs and ranking minority members of the legislative
committees with jurisdiction over human services.
new text end

Sec. 2.

Minnesota Statutes 2022, section 275.025, subdivision 1, is amended to read:


Subdivision 1.

Levy amount.

new text begin (a) new text end The state general levy is levied against
commercial-industrial property and seasonal residential recreational property, as defined
in this section. The state general levy for commercial-industrial property is $716,990,000
for taxes payable in 2023 deleted text begin and thereafterdeleted text end new text begin , $791,795,557 for taxes payable in 2024,
$866,601,114 for taxes payable in 2025, $941,406,671 for taxes payable in 2026,
$1,016,212,228 for taxes payable in 2027, and $1,091,017,785 for taxes payable in 2028
new text end .new text begin
For taxes payable in subsequent years, the state general levy for commercial-industrial
property increases each year by multiplying the amount of the state general levy for
commercial-industrial property for the prior year by the sum of one plus the rate of increase,
if any, in the implicit price deflator for government consumption expenditures and gross
investment for state and local governments prepared by the Bureau of Economic Analysis
of the United States Department of Commerce for the 12-month period ending March 31
of the year prior to the year taxes are payable.
new text end The state general levy for seasonal-recreational
property is $41,690,000 for taxes payable in 2020 and thereafter. The tax under this section
is not treated as a local tax rate under section 469.177 and is not the levy of a governmental
unit under chapters 276A and 473F.

new text begin (b) new text end The commissioner shall increase or decrease the preliminary or final rate for a year
as necessary to account for errors and tax base changes that affected a preliminary or final
rate for either of the two preceding years. Adjustments are allowed to the extent that the
necessary information is available to the commissioner at the time the rates for a year must
be certified, and for the following reasons:

(1) an erroneous report of taxable value by a local official;

(2) an erroneous calculation by the commissioner; and

(3) an increase or decrease in taxable value for commercial-industrial or seasonal
residential recreational property reported to the commissioner under section 270C.85,
subdivision 2, clause (4), for the same year.

The commissioner may, but need not, make adjustments if the total difference in the tax
levied for the year would be less than $100,000.

new text begin (c) In each year, the amount of the state general levy for commercial-industrial property
that exceeds $716,990,000 must be apportioned as follows:
new text end

new text begin (1) 33-1/3 percent to the community and household stability fund under section 256K.50;
new text end

new text begin (2) 33-1/3 percent to the homeownership opportunity fund under section 462A.51; and
new text end

new text begin (3) 33-1/3 percent to the rental opportunity fund under section 462A.52.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2024.
new text end

Sec. 3.

new text begin [462A.51] HOMEOWNERSHIP OPPORTUNITY FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Fund. new text end

new text begin The homeownership opportunity fund is established. All money
earned by the fund must be credited to the fund.
new text end

new text begin Subd. 2. new text end

new text begin Expenditures. new text end

new text begin The commissioner may issue grants, loans, or other forms of
financial assistance from the fund for expenditure on:
new text end

new text begin (1) financing the acquisition, rehabilitation, adaptive reuse, or new construction of
property to serve as owner-occupied housing, including single-family housing, multifamily
housing containing up to four units, housing on ground leased by a community land trust;
condominiums; and cooperatively owned housing, including cooperatively owned
manufactured home parks;
new text end

new text begin (2) financing the conversion of rental property into owner-occupied property, including
cooperatively owned housing and cooperatively owned manufactured home parks;
new text end

new text begin (3) down payment assistance;
new text end

new text begin (4) accessibility grants and loans for owner-occupied housing;
new text end

new text begin (5) financial assistance to borrowers who are delinquent on mortgage or contract for
deed payments; and
new text end

new text begin (6) homeownership education, counseling, and training under section 462A.209.
new text end

new text begin Subd. 3. new text end

new text begin Audit. new text end

new text begin The legislative auditor shall audit fund expenditures to ensure that the
money is spent for the purposes for which the money is appropriated.
new text end

new text begin Subd. 4. new text end

new text begin Reporting requirements. new text end

new text begin By January 15 each year, the commissioner shall
report on expenditures from the fund over the past year and planned expenditures of the
fund in the coming year to the chairs and ranking minority members of the legislative
committees with jurisdiction over human services.
new text end

Sec. 4.

new text begin [462A.52] RENTAL OPPORTUNITY FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Fund. new text end

new text begin The rental opportunity fund is established. All money earned by
the fund must be credited to the fund.
new text end

new text begin Subd. 2. new text end

new text begin Expenditures. new text end

new text begin The commissioner may issue grants, loans, or other forms of
financial assistance from the fund for expenditure on:
new text end

new text begin (1) financing the acquisition, rehabilitation, adaptive reuse, or new construction of
property to serve as rental housing affordable to households at or below 115 percent of area
median income;
new text end

new text begin (2) rental assistance; and
new text end

new text begin (3) supportive services to renters and owners of rental property.
new text end

new text begin Subd. 3. new text end

new text begin Audit. new text end

new text begin The legislative auditor shall audit fund expenditures to ensure that the
money is spent for the purposes for which the money is appropriated.
new text end

new text begin Subd. 4. new text end

new text begin Reporting requirements. new text end

new text begin By January 15 each year, the commissioner shall
report on expenditures from the fund over the past year and planned expenditures of the
fund in the coming year to the chairs and ranking minority members of the legislative
committees with jurisdiction over human services.
new text end