HF 2962

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; extending the application of the 4d property classification;
amending Minnesota Statutes 2005 Supplement, section 273.128, subdivision 1.

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

Section 1.

Minnesota Statutes 2005 Supplement, section 273.128, subdivision 1,
is amended to read:

Subdivision 1.

Requirement.

Low-income rental property classified as class 4d
under section 273.13, subdivision 25, is entitled to valuation under this section if:

(1) at least 75 percent of the units in the rental housing property meet any of the
following qualifications:

(1) (i) the units are subject to a housing assistance payments contract under section 8
of the United States Housing Act of 1937, as amended;

(2) (ii) the units are rent-restricted and income-restricted units of a qualified
low-income housing project receiving tax credits under section 42(g) of the Internal
Revenue Code of 1986, as amended;

(3) (iii) the units are financed by the Rural Housing Service of the United States
Department of Agriculture and receive payments under the rental assistance program
pursuant to section 521(a) of the Housing Act of 1949, as amended; or

(4) (iv) the units are subject to rent and income restrictions under the terms of
financial assistance provided to the rental housing property by the federal government or
the state of Minnesota as evidenced by a document recorded against the property; or

(2) at least 40 percent of the units in the rental housing property are subject to a
housing assistance payments contract under section 8 of the United States Housing Act of
1937, as amended.

The restrictions must require assisted units to be occupied by residents whose
household income at the time of initial occupancy does not exceed 60 percent of the
greater of area or state median income, adjusted for family size, as determined by the
United States Department of Housing and Urban Development. The restriction must also
require the rents for assisted units to not exceed 30 percent of 60 percent of the greater of
area or state median income, adjusted for family size, as determined by the United States
Department of Housing and Urban Development.

EFFECTIVE DATE.

This section is effective for taxes levied in 2006, payable
in 2007, and thereafter.