HF 435

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to the city of St. Paul; authorizing the city 
  1.3             to create multiple tax increment financing housing 
  1.4             districts; amending Laws 2000, chapter 490, article 
  1.5             11, section 40. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Laws 2000, chapter 490, article 11, section 40, 
  1.8   is amended to read: 
  1.9      Sec. 40.  [ST. PAUL HOUSING AND REDEVELOPMENT AUTHORITY; 
  1.10  HOUSING DISTRICT.] 
  1.11     Subdivision 1.  [AUTHORIZATION.] The governing body of the 
  1.12  housing and redevelopment authority of the city of St. Paul may 
  1.13  create a multiple tax increment financing housing 
  1.14  district districts as provided in this section for a development 
  1.15  developments containing both owner-occupied and residential 
  1.16  rental units for mixed income occupancy. 
  1.17     Subd. 2.  [AREA.] The housing district districts authorized 
  1.18  in this section may only be created in the northeast quadrant of 
  1.19  downtown St. Paul, which is defined as the approximately 15-acre 
  1.20  area bounded by Interstate 94 on the north and east, Jackson 
  1.21  Street on the west, and Seventh Street on the south, together 
  1.22  with the west side of Jackson Street to midblock between 
  1.23  Interstate 94 and Seventh Street throughout the city of St. Paul.
  1.24     Subd. 3.  [INCOME REQUIREMENTS FOR COMBINED OWNER-OCCUPIED 
  1.25  AND RESIDENTIAL RENTAL DEVELOPMENT.] (a) Notwithstanding the 
  2.1   income requirements in Minnesota Statutes, section 469.174, 
  2.2   subdivision 11, or 469.1761, a housing district in the northeast 
  2.3   quadrant for purposes of this section means a type of tax 
  2.4   increment financing district that consists of a project, or a 
  2.5   portion of a project, intended for occupancy, in part, by 
  2.6   persons of low and moderate income as defined in chapter 462A, 
  2.7   Title II, of the National Housing Act of 1934; the National 
  2.8   Housing Act of 1959; the United States Housing Act of 1937, as 
  2.9   amended; Title V of the Housing Act of 1949, as amended; any 
  2.10  other similar present or future federal, state, or municipal 
  2.11  legislation, or the regulations promulgated under any of those 
  2.12  acts, as further set forth in this section.  Twenty percent of 
  2.13  the units in the development in the housing district must be 
  2.14  occupied by individuals whose family income is equal to or less 
  2.15  than 50 percent of area median gross income and an additional 60 
  2.16  percent of the units in the development in the housing district 
  2.17  must be occupied by individuals whose family income is equal to 
  2.18  or less than 115 percent of area median gross income.  Twenty 
  2.19  percent of the units in the development in the housing district 
  2.20  shall not be subject to any income limitations. 
  2.21     (b) For purposes of this section, family income means the 
  2.22  median gross income for the area as determined under section 42 
  2.23  of the Internal Revenue Code of 1986, as amended.  The income 
  2.24  requirements of this subdivision shall be deemed to be satisfied 
  2.25  if the sum of qualified owner-occupied units and qualified 
  2.26  residential rental units equals the required total number of 
  2.27  qualified units.  Owner-occupied units must be initially 
  2.28  purchased and occupied by individuals whose family income 
  2.29  satisfies the income requirements of this subdivision.  For 
  2.30  residential rental property, the income requirements of this 
  2.31  subdivision apply for the duration of the tax increment district.
  2.32     (c) The development in the housing district, but not the 
  2.33  project, does not qualify under this subdivision if the fair 
  2.34  market value of the improvements which are constructed for 
  2.35  commercial uses or for uses other than owner-occupied and rental 
  2.36  mixed-income housing consists of more than 20 percent of the 
  3.1   total fair market value of the planned improvements in the 
  3.2   development plan or agreement.  The fair market value of the 
  3.3   improvements may be determined using the cost of construction, 
  3.4   capitalized income, or other appropriate method of estimating 
  3.5   market value. 
  3.6      [EFFECTIVE DATE.] This section is effective the day after 
  3.7   the governing body of the city of St. Paul and its chief 
  3.8   clerical officer timely comply with Minnesota Statutes, section 
  3.9   645.021, subdivisions 2 and 3.