Minnesota SF2041 expands eligible uses of tax increment financing districts to include transfers to local housing trust funds.

Minnesota SF2041 modifies tax increment financing districts to allow transfers to local housing trust funds. The bill specifies that these transfers must benefit households at or below 60% of area median income for rental housing and at or below 120% for homeownership housing. The transferred increments are no longer considered tax increments and are exempt from certain credit limits. The bill also outlines income requirements for funds distributed from housing trust funds and sets a cap on the amount that can be transferred based on the municipality's location.

Minnesota SF2041 expands eligible uses of tax increment financing districts to include transfers to local housing trust funds.

Minnesota SF2041 modifies tax increment financing districts to allow transfers to local housing trust funds. The bill specifies that these transfers must benefit households at or below 60% of area median income for rental housing and at or below 120% for homeownership housing. The transferred increments are no longer considered tax increments and are exempt from certain credit limits. The bill also outlines income requirements for funds distributed from housing trust funds and sets a cap on the amount that can be transferred based on the municipality's location.