Purpose of the Bill

The bill aims to provide permanent financial aid for low-income rental properties classified as "class 4d1" to support affordable housing initiatives within cities in Minnesota. This aid is designed to offset the tax burden on these properties, thereby encouraging the availability and maintenance of low-income rental units.

Main Provisions

• Permanent Aid Establishment: The bill establishes ongoing financial support through aid specifically targeted at "class 4d1" low-income rental properties.
• Calculation of Aid: The aid amount for each city is determined by multiplying the city’s tax rate from 2024 by the "modified tax capacity" of the city’s low-income rental properties. This calculation ensures aid reflects local tax conditions and economic realities.
• Definitions: Key terms like "4d1 property," "base assessment year," and "modified tax capacity" are defined to clarify eligibility and calculation criteria.
• Payment and Administration: The commissioner of revenue is tasked with determining the net tax capacity and certifying the aid amount by July 15, 2024. Aid is distributed in two installments to participating cities.

Significant Changes to Existing Law

The bill makes the previously temporary low-income rental property aid permanent and introduces a specific statute in Minnesota Statutes chapter 477A to codify this arrangement. It provides a clear framework for the ongoing financial support of affordable rental housing to ensure that housing costs remain manageable for low-income residents.

Relevant Terms

low-income rental properties, class 4d1, affordable housing, tax aid, modified tax capacity, permanent financial support, Minnesota Statutes chapter 477A.