Bill > HF1488

This bill modifies the requirements for low-income rental housing properties to qualify for a special property tax classification known as class 4d(1). Currently, properties can receive this classification if at least 20% of their units meet certain affordability criteria, such as being part of Section 8 housing or receiving tax credits. The bill clarifies and slightly modifies the income and rent restrictions for these units, specifically requiring that assisted units be occupied by households with incomes not exceeding 60% of the area or state median income, and that rents do not exceed 30% of that income level. Additionally, the bill introduces a new requirement that property owners must use the property tax savings from this classification for specific purposes like property maintenance, security, improvements, rent stabilization, or increasing the property's replacement reserve account. 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 assessment year 2026, giving property owners time to adapt to the new requirements.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF1488&ssn=0&y=2025