HF 44

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:33am

A bill for an act
relating to taxation; property; providing a housing opportunity area tax abatement
program; proposing coding for new law in Minnesota Statutes, chapter 273.

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

Section 1.

new text begin [273.129] HOUSING OPPORTUNITY TAX ABATEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin For the purpose of promoting economic diversity
throughout Minnesota and to alleviate the concentration of low-income households in high
poverty areas, a housing opportunity area tax abatement program is created.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given them.
new text end

new text begin (b) "Housing authority" means either a housing authority created under the Housing
Authorities Act or other government agency that is authorized by the United States
government under the United States Housing Act of 1937 to administer a housing choice
voucher program, or the authorized agent of such a housing authority that is authorized
to act on that authority's behalf.
new text end

new text begin (c) "Housing choice voucher" means a tenant voucher issued by a housing authority
under section 8 of the United States Housing Act of 1937.
new text end

new text begin (d) "Housing opportunity area" means a census tract where less than ten percent of
the residents live below the poverty level, as defined by the United States government and
determined by the most recent United States census, that is located within a qualified city
or town.
new text end

new text begin (e) "Housing opportunity unit" means a dwelling unit located in residential property
that is located in a housing opportunity area, that is owned by the applicant, and that
is rented to and occupied by a tenant who is participating in a housing choice voucher
program administered by a housing authority as of January 1 of the taxes payable year for
which the application is made.
new text end

new text begin (f) "Qualified units" means the number of housing opportunity units located in
the property, with the limitation that no more than two units or 20 percent of the total
units contained within the property, whichever is greater, may be considered qualified
units. Further, no unit may be considered qualified unless the property in which it
is contained is in substantial compliance with local building codes, and no unit may
be considered qualified unless it meets the United States Department of Housing and
Urban Development's housing quality standards as of the most recent housing authority
inspection.
new text end

new text begin (g) "Qualified city or town" means a home rule charter or statutory city or town that
is (1) located within a county with 200,000 or more inhabitants, and (2) whose net tax
capacity per capita exceeds the average net tax capacity per capita of all cities or towns in
the county in which it is located.
new text end

new text begin (h) "Tax capacity per capita" means the adjusted net tax capacity of all taxable
real estate located within a city, town, or county divided by the total population of that
city, town, or county.
new text end

new text begin Subd. 3. new text end

new text begin Application by owner; determination by housing authority. new text end

new text begin The owner
of property located within a housing opportunity area who has a housing choice voucher
contract with a housing authority may apply for housing opportunity area tax abatement by
annually submitting an application to the housing authority that administers the housing
choice voucher contract. The application must include the number of housing opportunity
units as well as the total number of dwelling units contained within the property. The
housing authority shall annually determine the number of qualified units located within
each property for which an application is made. The housing authority shall establish rules
and procedures governing the application processes and may charge an application fee.
new text end

new text begin Subd. 4. new text end

new text begin Housing opportunity areas. new text end

new text begin The housing authority shall determine
housing opportunity areas within its service area and annually deliver to the county
auditor, in a manner determined by the county auditor, a list of all properties containing
qualified units within that service area by December 31 of the assessment year for which
the property is eligible for abatement. The list must include the number of qualified units
and the total number of dwelling units for each property.
new text end

new text begin Subd. 5. new text end

new text begin County auditor; data. new text end

new text begin The county auditor shall deliver annually to a
housing authority, upon the housing authority's request, the most recent available adjusted
net tax capacity for the county as a whole and for those cities and towns so specified by
the requesting housing authority.
new text end

new text begin Subd. 6. new text end

new text begin Abatement. new text end

new text begin The county auditor shall abate the tax attributable to the
portion of the property determined to be eligible for housing opportunity area abatement.
The amount of the abatement shall be determined by reducing the tax by a percentage
calculated using the following formula: 20 percent of the adjusted net tax capacity of the
property multiplied by a fraction in which the numerator is the number of qualified units
and the denominator is the total number of dwelling units located within the property. The
amount of abatement shall be shown as a credit on the property tax statement.
new text end

new text begin Subd. 7. new text end

new text begin Exclusion by petition of municipality. new text end

new text begin Any home rule charter or statutory
city or town may annually petition the county auditor to be excluded from a housing
opportunity area if more than two percent of the total residential units located within
that municipality are occupied by tenants under the housing choice voucher program.
Properties located within an excluded municipality are not eligible for the housing
opportunity area abatement for the tax year in which the petition is made.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes assessed in 2009, payable
in 2010, and thereafter.
new text end