Bill > SF2667

This bill allows the cities of Minnetonka, Richfield, and St. Louis Park to expand the use of tax increment financing (TIF) by permitting them to transfer up to 15% of their tax increment funds outside of their original TIF districts to local housing trust funds. To qualify for this expanded use, the transferred funds must be used for affordable housing purposes, with specific income requirements: rental housing must benefit households at or below 80% of the area median income, and homeownership housing must benefit households at or below 120% of the area median income. Once transferred to the housing trust fund, these funds are no longer considered tax increment funds and are exempt from standard TIF reporting requirements. This legislation provides these three specific cities with more flexibility in using their tax increment financing funds to support affordable housing development, potentially helping to address local housing needs by creating more opportunities for low and moderate-income residents to access housing.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2667&ssn=0&y=2025