1998 Minnesota Statutes

     469.1761 Income requirements; housing projects. 

    Subdivision 1.    Requirement imposed.  In order for a 
 tax increment financing district to qualify as a housing 
 district, the income limitations provided in this section must 
 be satisfied.  The requirements imposed by this section apply to 
 residential property receiving assistance financed with tax 
 increments, including interest reduction, land transfers at less 
 than the authority's cost of acquisition, utility service or 
 connections, roads, or other subsidies.  The provisions of this 
 section do not apply to districts located in a targeted area as 
 defined in section 462C.02, subdivision 9, clause (e). 

    Subd. 2.    Owner occupied housing.  For owner occupied 
 residential property, 95 percent of the housing units must be 
 initially purchased and occupied by individuals whose family 
 income is less than or equal to the income requirements for 
 qualified mortgage bond projects under section 143(f) of the 
 Internal Revenue Code. 

    Subd. 3.    Rental property.  For residential rental 
 property, the property must satisfy the income requirements for 
 a qualified residential rental project as defined in section 
 142(d) of the Internal Revenue Code.  A property also satisfies 
 the requirements of section 142(d) if 50 percent of the 
 residential units in the project are occupied by individuals 
 whose income is 80 percent or less of area median gross income.  
 The requirements of this subdivision apply for the duration of 
 the tax increment financing district. 

    Subd. 4.    Noncompliance; enforcement.  Failure to 
 comply with the requirements of this section results in 
 application of the duration limits for economic development 
 districts to the district.  If at the time of the noncompliance 
 the district has exceeded the duration limits for an economic 
 development district, the district must be decertified effective 
 for taxes assessed in the next calendar year.  The commissioner 
 of revenue shall enforce the provisions of this section.  The 
 commissioner may waive insubstantial violations.  Appeal of the 
 commissioner's orders of noncompliance must be made to the tax 
 court in the manner provided in section 271.06. 

    HIST: 1Sp1989 c 1 art 14 s 12; 1996 c 471 art 7 s 17