1.1                          A bill for an act 
  1.2             relating to taxation; property; providing for 
  1.3             classification of certain rental housing; amending 
  1.4             Minnesota Statutes 1998, section 273.126, subdivision 
  1.5             1, and by adding a subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 273.126, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [QUALIFYING RULES.] The market value of a 
  1.10  rental housing unit qualifies for assessment under class 4d if: 
  1.11     (1) it is occupied by individuals meeting the income limits 
  1.12  under subdivision 2; 
  1.13     (2) a rent restriction agreement under subdivision 3 
  1.14  applies; 
  1.15     (3) the unit meets the minimum housing quality standards 
  1.16  under subdivision 4; and 
  1.17     (4) the Minnesota housing finance agency certifies to the 
  1.18  local assessor that the unit qualifies; and 
  1.19     (5)(i) the unit was classified as class 4d for property 
  1.20  taxes payable in 2000 or (ii) the unit was newly constructed or 
  1.21  substantially rehabilitated after January 2, 1999. 
  1.22     Sec. 2.  Minnesota Statutes 1998, section 273.126, is 
  1.23  amended by adding a subdivision to read: 
  1.24     Subd. 7.  [SUBSTANTIALLY REHABILITATED.] "Substantially 
  1.25  rehabilitated" means, for purposes of this section and section 
  2.1   462A.071, that $5,000 or more was spent on improving the unit or 
  2.2   the unit's proportionate share of the building. 
  2.3      Sec. 3.  [EFFECTIVE DATE.] 
  2.4      Sections 1 and 2 are effective for taxes levied in 2000, 
  2.5   payable in 2001, and thereafter.