Bill > HF3327

This bill establishes a permanent aid program for cities with class 4d(1) low-income rental properties, which are rental properties designated as providing affordable housing. The bill defines key terms such as the "base assessment year" (2023) and creates a formula to calculate aid payments to cities. Specifically, the aid amount will be calculated by multiplying the city's 2024 tax rate by a "modified tax capacity" that takes into account the net tax capacity of low-income rental properties, with some adjustments to account for changes in property classification rates. The aid will be certified by the commissioner of revenue before August 1 of the year preceding distribution and paid in two installments. The bill appropriates sufficient funds from the general fund to cover these aid payments, and the program will be effective for aid payments starting in 2027. The goal appears to be providing financial support to cities to help maintain and incentivize low-income rental housing.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF3327&ssn=0&y=2025