Bill > HF2324

This bill expands the tax increment financing (TIF) options for the cities of Minnetonka, Richfield, and St. Louis Park by allowing them to transfer up to 15% of tax increment funds outside their original tax increment financing districts to local housing trust funds. To qualify for this expanded transfer authority, the funds must be used to support affordable housing, with specific income-based requirements: rental housing projects must serve households at or below 80% of the area median income, while homeownership housing projects can serve households at or below 120% of the area median income. Once transferred, these funds are no longer considered tax increment funds and are exempt from standard TIF reporting requirements. The purpose of this bill is to provide these three specific cities with more flexibility in using tax increment financing to support local affordable housing initiatives by allowing direct transfers to housing trust funds with clear guidelines on income targeting and fund usage.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2324&ssn=0&y=2025