Bill > SF33

This bill modifies the requirements for class 4d(1) low-income rental housing classification, which provides a property tax benefit to rental properties with affordable housing units. The bill clarifies and reinforces existing income and rent restrictions for properties seeking this classification, specifically requiring that at least 20 percent of units must have residents whose household income does not exceed 60 percent of the area or state median income, and that rents for these units cannot exceed 30 percent of that income level. Additionally, the bill mandates that property owners who receive this tax classification must use the resulting tax savings for specific purposes such as property maintenance, security, improvements, rent stabilization, or increasing the property's replacement reserve account. To maintain the classification, property owners must annually reapply and certify to the Housing Finance Agency that they have used the tax savings for these eligible purposes. The changes will become effective with the 2026 assessment year, providing property owners time to adjust to the new requirements.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0033&ssn=0&y=2025