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Minnesota Legislature

Office of the Revisor of Statutes

SF 1915

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to taxation; requiring certain low-income rental housing to participate
in the crime free multihousing program to receive a reduced property tax class
rate; amending Minnesota Statutes 2006, section 273.128, subdivision 1, by
adding a subdivision.

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

Section 1.

Minnesota Statutes 2006, section 273.128, subdivision 1, is amended to read:


Subdivision 1.

deleted text beginRequirementdeleted text endnew text begin Requirementsnew text end.

deleted text beginLow-income rental propertydeleted text endnew text begin In order
to be
new text end classified as class 4d new text beginlow-income rental housing new text endunder section 273.13, subdivision
25
, deleted text beginis entitled to valuation under this section ifdeleted text endnew text begin the property must meet the requirements
of subdivision 4, if applicable, and
new text end at least 75 percent of the units in the rental housing
property new text beginmust new text endmeet any of the following qualifications:

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

(2) 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) 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) 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.

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.

Sec. 2.

Minnesota Statutes 2006, section 273.128, is amended by adding a subdivision
to read:


new text begin Subd. 4. new text end

new text begin Participation in crime-free multihousing program. new text end

new text begin In addition to the
requirement in subdivision 1, if the property is located in a city or county that offers a
crime-free multihousing program through its city police or county sheriff, the owners or
managers of the property must complete the three phases of the program and the property
must be annually certified by the police or sheriff as participating in the program. If the
property is not certified within one year after it is first classified as class 4d property
under section 273.13, subdivision 25, or does not annually maintain its certification in
the program, the city or county shall notify the property owner that the property must be
in compliance with the requirements of this subdivision to maintain its classification as
class 4d property. If the property is not in compliance within one year after receiving the
notice from the city or county, the city or county shall issue a second notice and require
the property owners to enter into a plan to achieve compliance within one year. If, upon
expiration of the one-year time period, the property has not been certified by the police or
sheriff as completing the program, the city or county shall notify the Housing Finance
Agency, which shall remove the property from the list of class 4d qualified properties
certified to the county or city assessor under subdivision 3. Once removed from the list,
the property is not eligible for class 4d classification until it complies with this subdivision
and its compliance has been certified to the Housing Finance Agency by the city or county.
Certification to the Housing Finance Agency must be made by May 15 to be effective for
taxes payable in the following year.
new text end

Sec. 3. new text beginEFFECTIVE DATE; TRANSITION.
new text end

new text begin Sections 1 and 2 are effective for property taxes levied in 2007, payable in 2008, and
thereafter. Low-income rental housing property classified as class 4d property for taxes
payable in 2007 must meet the requirements of this section by May 15, 2010.
new text end