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HF2324 (Legislative Session 94 (2025-2026))

Minnetonka, Richfield, and St. Louis Park; eligible uses of increment from tax increment financing districts expanded to include transfers to local housing trust funds, and use of transferred increment requirements imposed.

Related bill: SF2667

AI Generated Summary

This Minnesota House bill (H.F. No. 2324) expands the allowable uses of tax increment financing (TIF) funds in the cities of Minnetonka, Richfield, and St. Louis Park. Specifically, it permits these cities to transfer a portion of their TIF revenue (up to 15 percentage points higher than the current limit) to local housing trust funds.

The funds transferred to housing trust funds must be used for rental and homeownership programs, with specific income restrictions: - Rental housing funds must benefit households earning at or below 80% of the area median income. - Homeownership funds must benefit households earning at or below 120% of the area median income.

Once TIF funds are transferred to the housing trust fund, they are no longer considered TIF increments and are exempt from standard TIF reporting requirements.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 12, 2025HouseFloorActionIntroduction and first reading, referred toTaxes
March 12, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Allows Minnetonka, Richfield, and St. Louis Park to increase expenditures outside their districts by 15 percentage points."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies the outside district expenditure authorization for listed cities under section 469.1763, subdivision 2.",
      "modified": [
        ""
      ]
    },
    "citation": "469.1763",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        "Allows use of tax increment funds for transfer to local housing trust funds."
      ],
      "removed": [
        ""
      ],
      "summary": "This legislation allows increased use of tax increment funds to transfer them to housing trust funds as per section 462C.16.",
      "modified": [
        ""
      ]
    },
    "citation": "462C.16",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Clarifies that transferred increments are not considered increments under this definition."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies the definition of increment related to housing trust fund transfers under section 469.174, subdivision 25.",
      "modified": [
        ""
      ]
    },
    "citation": "469.174",
    "subdivision": "subdivision 25"
  },
  {
    "analysis": {
      "added": [
        "Excludes transferred increments from annual reporting requirements."
      ],
      "removed": [
        ""
      ],
      "summary": "This legislation amends reporting requirements concerning transferred increments under section 469.175.",
      "modified": [
        ""
      ]
    },
    "citation": "469.175",
    "subdivision": ""
  }
]

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