HF 2812

as introduced - 91st Legislature (2019 - 2020) Posted on 04/04/2019 02:16pm

A bill for an act
relating to taxes; property tax aids; creating a new aid program to assist with
low-income housing; appropriating money; proposing coding for new law in
Minnesota Statutes, chapter 477A.

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

Section 1.

new text begin [477A.095] LOW-INCOME HOUSING AID.
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new text begin Subdivision 1. 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 unless otherwise provided to the contrary.
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new text begin (b) "Affordable housing" means rental housing where at least 20 percent of the units are
subject to rent and income restrictions under the terms of financial assistance provided by
a local unit of government, and the restrictions require that rent for restricted units does not
exceed 30 percent of 30 percent of the area median income, adjusted for family size, as
determined by the United States Department of Housing and Urban Development.
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new text begin (c) "Base year estimate" means the American Community Survey five-year estimates
from seven years prior to the current year.
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new text begin (d) "Comparison region" means:
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new text begin (1) for a census tract for which a majority of the tract's area is in the seven-county
metropolitan area, the seven-county metropolitan area; and
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new text begin (2) for all other census tracts, the county in which the largest share of the tract's area
lies.
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new text begin (e) "Current year estimate" means the most recently available American Community
Survey five-year estimates.
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new text begin (f) "Population" means the current year estimate for the census tract.
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new text begin (g) "Qualifying census tract" means a United States Census Bureau census tract that
meets the following criteria:
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new text begin (1) in the base year estimate, the tract had a median household income that was less than
the median household income in the comparison region;
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new text begin (2) the tract's rate of growth in median gross rent and share of college-educated residents
from the base year estimate to the current year estimate exceeded the rates of growth in the
comparison region; and
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new text begin (3) the rate of growth in median gross rent was greater than zero.
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new text begin (h) "Seven-county metropolitan area" means the counties of Anoka, Carver, Dakota,
Hennepin, Ramsey, Scott, and Washington.
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new text begin Subd. 2. new text end

new text begin Low-income housing aid. new text end

new text begin Beginning with aids payable in calendar year 2020,
a county qualifies for low-income housing aid provided that the county has at least one
qualifying census tract located within its geographic boundaries. The amount of aid the
county receives in any calendar year is equal to the amount available for aid under subdivision
4, multiplied by the ratio of (1) the total population of all qualifying census tracts in the
county, to (2) the total population of all qualifying census tracts in the state. The
commissioner of revenue shall compute the amount of aid payable to each county under
this section and certify the amount to each county by August 1 of the year prior to the year
in which the aid is paid. Data used to calculate aid to counties under this section will be the
most recently available data as of July 1 of the year in which the aid is calculated.
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new text begin Subd. 3. new text end

new text begin Use of revenue; distribution within a county. new text end

new text begin All aid paid under this section
shall be distributed with the first payment of county aids under section 477A.015. The aid
a county receives under this section must be used to make grants to cities, towns, economic
development districts, housing and redevelopment districts, or any other local special tax
district that (1) is located in whole or in part in a qualifying census tract in the district, and
(2) has authority to develop low-income housing within the qualified census tract. To the
extent practicable, the grants must be made to ensure that the share of the county aid going
to all local jurisdictions in a qualifying census tract is equal to the ratio of the population
in that census tract to the total population of all qualifying census tracts in the county. Money
distributed under this subdivision must be used to develop or redevelop affordable housing
within the qualified census tract. Allowable use of the funds include: gap financing, as
defined in section 462A.33, subdivision 1; new construction; acquisition, rehabilitation,
demolition, or removal of existing structures; construction financing; permanent financing;
interest rate reduction; and refinancing.
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new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin $25,000,000 is appropriated annually from the general fund
to the commissioner of revenue to pay aid under this section.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2020
and thereafter.
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