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SF 4136

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/05/2026 09:41 a.m.

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to metropolitan government; adding Tribal governments as eligible
recipients of certain Metropolitan Council grant programs; making technical
changes; amending Minnesota Statutes 2024, sections 473.252, subdivision 1a;
473.253; 473.254, subdivision 6; 473.255, subdivision 1; 473.355, subdivision 2.

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

Section 1.

Minnesota Statutes 2024, section 473.252, subdivision 1a, is amended to read:


Subd. 1a.

Development authority.

For the purpose of this section, "development
authority" means a statutory or home rule charter city, housing and redevelopment authority,
economic development authority, deleted text begin and adeleted text end port authoritynew text begin , Tribal government, or Tribal
development entity
new text end .

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end

Sec. 2.

Minnesota Statutes 2024, section 473.253, is amended to read:


473.253 LIVABLE COMMUNITIES DEMONSTRATION ACCOUNT.

Subdivision 1.

Sources of funds.

The council shall credit to the livable communities
demonstration account the revenues provided in this subdivision. This tax shall be levied
and collected in the manner provided by section 473.13. The levy shall not exceed deleted text begin the
following amount for the years specified:
deleted text end

deleted text begin (1) for taxes payable in 2004 and 2005, $8,259,070; and
deleted text end

deleted text begin (2) for taxes payable in 2006 and subsequent years,deleted text end the product of deleted text begin (i)deleted text end new text begin (1)new text end the property
tax levy limit under this subdivision for the previous year multiplied by deleted text begin (ii)deleted text end new text begin (2)new text end one plus a
percentage equal to the growth in the implicit price deflator as defined in section 275.70,
subdivision 2
.

Subd. 2.

Distribution of funds.

The council shall use the funds in the livable communities
demonstration account to make grants or loans to municipalities participating in the local
housing incentives program under section 473.254 or to metropolitan area counties or
development authorities to fund the initiatives specified in section 473.25, paragraph (b),
in participating municipalities. A grant to a metropolitan county or a development authority
must be used for a project in a participating municipality. For the purpose of this section,
"development authority" means a statutory or home rule charter city, housing and
redevelopment authority, economic development authority, deleted text begin ordeleted text end port authoritynew text begin , Tribal
government, or Tribal development entity
new text end .

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end

Sec. 3.

Minnesota Statutes 2024, section 473.254, subdivision 6, is amended to read:


Subd. 6.

Distribution of funds.

The funds in the account must be distributed annually
by the council to municipalities that:

(1) have not met their affordable and life-cycle housing goals as determined by the
council; and

(2) are actively funding projects designed to help meet the goals.

Funds may also be distributed to a development authority for a project in an eligible
municipality. The funds distributed by the council must be matched on a dollar-for-dollar
basis by the municipality or development authority receiving the funds. When distributing
funds in the account, the council must give priority to projects that (1) are in municipalities
that have contribution net tax capacities that exceed their distribution net tax capacities by
more than $200 per household, (2) demonstrate the proposed project will link employment
opportunities with affordable and life-cycle housing, and (3) provide matching funds from
a source other than the required affordable and life-cycle housing opportunities amount
under subdivision 3 or 3a, as applicable. For the purposes of this subdivision, "municipality"
means a statutory or home rule charter city or town in the metropolitan area and "development
authority" means a housing and redevelopment authority, economic development authority,
deleted text begin ordeleted text end port authoritynew text begin , Tribal government, or Tribal development entitynew text end .

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end

Sec. 4.

Minnesota Statutes 2024, section 473.255, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) "Inclusionary housing development" means a new
construction development, including owner-occupied or rental housing, or a combination
of both, with a variety of prices and designs which serve families with a range of incomes
and housing needs.

(b) "Municipality" means a statutory or home rule charter city or town participating in
the local housing incentives program under section 473.254.

(c) "Development authority" means a housing and redevelopment authority, economic
development authority, deleted text begin ordeleted text end port authoritynew text begin , Tribal government, or Tribal development entitynew text end .

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end

Sec. 5.

Minnesota Statutes 2024, section 473.355, subdivision 2, is amended to read:


Subd. 2.

Grants.

(a) The Metropolitan Council must establish a grant program to provide
grants to cities, counties, townships, new text begin Tribal governments, new text end and implementing agencies for
the following purposes:

(1) removing and planting shade trees on public land to provide environmental benefits;

(2) replacing trees lost to forest pests, disease, or storms; and

(3) establishing a more diverse community forest better able to withstand disease and
forest pests.

(b) Any tree planted with money granted under this section must be a climate-adapted
species to Minnesota.

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end