Bill > HF1605

This bill limits rent increases in low-income senior housing projects that receive federal low-income housing tax credits. Specifically, the bill restricts rental rate increases in these projects to no more than the annual percentage increase in Social Security or Supplemental Security Income (SSI) benefit amounts, minus one percent, with a floor of zero percent. This means that in any given 12-month period, rents cannot rise by more than the Social Security cost-of-living adjustment (COLA) less one percentage point, or remain at zero percent if the COLA is low. The provision applies only to rental projects specifically designated for senior residents and that have received low-income housing tax credits under section 42 of the Internal Revenue Code. The intent appears to be protecting elderly low-income renters from significant annual rent hikes that could make their housing unaffordable, by tying potential increases to modest changes in federal benefit amounts.

Housing and Urban Affairs

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF1605&ssn=0&y=2025