HF 2324

as introduced - 94th Legislature (2025 - 2026) Posted on 03/13/2025 03:02pm

A bill for an act
relating to taxation; tax increment financing; expanding eligible uses of increment
from tax increment financing districts in the cities of Minnetonka, Richfield, and
St. Louis Park to include transfers to local housing trust funds; imposing
requirements on use of transferred increment.

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

Section 1. new text begin CITIES OF MINNETONKA, RICHFIELD, AND ST. LOUIS PARK;
TRANSFER OF INCREMENT AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Expenditures outside district. new text end

new text begin (a) For the city of Minnetonka, or its
economic development authority, the authorization to elect to increase outside the district
expenditures under Minnesota Statutes, section 469.1763, subdivision 2, paragraph (d), is
increased to 15 percentage points.
new text end

new text begin (b) For the city of Richfield, or its housing and redevelopment authority, the authorization
to elect to increase outside the district expenditures under Minnesota Statutes, section
469.1763, subdivision 2, paragraph (d), is increased to 15 percentage points.
new text end

new text begin (c) For the city of St. Louis Park, or its economic development authority, the authorization
to elect to increase outside the district expenditures under Minnesota Statutes, section
469.1763, subdivision 2, paragraph (d), is increased to 15 percentage points.
new text end

new text begin Subd. 2. new text end

new text begin Allowable use. new text end

new text begin To qualify for the increase under subdivision 1, the expenditures
must be used for transfer to a housing trust fund established pursuant to section 462C.16
for expenditure in accordance with subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Increment transferred to a housing trust fund. new text end

new text begin (a) A city or authority making
a transfer under subdivision 2, must allocate the transferred increment in conformity with
the city's ordinance or policy establishing the division of funds for rental and homeownership
distributions. Money distributed under this subdivision must follow the following income
requirements:
new text end

new text begin (1) for money used for rental housing purposes, the money must benefit households at
or below 80 percent of area median income; and
new text end

new text begin (2) for money used for homeownership housing purposes, the money must benefit
households at or below 120 percent of area median income.
new text end

new text begin (b) Any increment transferred for use pursuant to this subdivision is no longer considered
increment within the meaning of section 469.174, subdivision 25, and is not subject to the
annual reporting requirements imposed by section 469.175.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end