SF 2278

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

  1.1                          A bill for an act 
  1.2             relating to tax increment financing; authorizing 
  1.3             housing districts containing certain mixed-income 
  1.4             occupancy; amending Minnesota Statutes 2002, section 
  1.5             469.1761, by adding a subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 469.1761, is 
  1.8   amended by adding a subdivision to read: 
  1.9      Subd. 3a.  [MIXED-INCOME OCCUPANCY PROJECTS.] (a) 
  1.10  Notwithstanding the income requirements in subdivisions 2 and 3, 
  1.11  or section 469.174, subdivision 11, an authority may create 
  1.12  housing districts for developments that contain both 
  1.13  owner-occupied and residential rental units for mixed-income 
  1.14  occupancy.  Such a district consists of a project, or a portion 
  1.15  of a project, intended for occupancy, in part, by persons of low 
  1.16  and moderate income as defined in chapter 462A, title II, of the 
  1.17  National Housing Act of 1934; the National Housing Act of 1959; 
  1.18  the United States Housing Act of 1937, as amended; title V of 
  1.19  the Housing Act of 1949, as amended; any other similar present 
  1.20  or future federal, state, or municipal legislation, or the 
  1.21  regulations promulgated under any of those acts, as further 
  1.22  specified in this section.  Twenty percent of the units in the 
  1.23  development in the housing district must be occupied by 
  1.24  individuals whose family income is equal to or less than 50 
  1.25  percent of area median gross income, and an additional 60 
  2.1   percent of the units in the development in the housing district 
  2.2   must be occupied by individuals whose family income is equal to 
  2.3   or less than 115 percent of area median gross income.  Twenty 
  2.4   percent of the units in the development in the housing district 
  2.5   must not be subject to any income limitations. 
  2.6      (b) For purposes of this subdivision, "family income" means 
  2.7   the median gross income for the area as determined under section 
  2.8   42 of the Internal Revenue Code of 1986, as amended.  The income 
  2.9   requirements of this subdivision are satisfied if the sum of 
  2.10  qualified owner-occupied units and qualified residential rental 
  2.11  units equals the required total number of qualified units.  
  2.12  Owner-occupied units must be initially purchased and occupied by 
  2.13  individuals whose family income satisfies the income 
  2.14  requirements of this subdivision.  For residential rental 
  2.15  property, the income requirements of this subdivision apply for 
  2.16  the duration of the tax increment district.  
  2.17     (c) The development in the housing district, but not the 
  2.18  project, does not qualify under this subdivision if the fair 
  2.19  market value of the improvements that are constructed for 
  2.20  commercial uses or for uses other than owner-occupied and rental 
  2.21  mixed-income housing consists of more than 20 percent of the 
  2.22  total fair market value of the planned improvements in the 
  2.23  development plan or agreement.  The fair market value of the 
  2.24  improvements may be determined using the cost of construction, 
  2.25  capitalized income, or other appropriate method of estimating 
  2.26  market value. 
  2.27     [EFFECTIVE DATE.] This section is effective for districts 
  2.28  for which certification is requested after July 31, 2003.