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SF2667 (Legislative Session 94 (2025-2026))

Minnetonka, Richfield, and St. Louis Park tax increment financing districts eligible uses for increment expansion

Related bill: HF2324

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to expand the eligible uses of tax increment financing (TIF) for the cities of Minnetonka, Richfield, and St. Louis Park, Minnesota. Specifically, it allows these cities to transfer TIF funds to local housing trust funds to support housing-related initiatives.

Main Provisions

  • Increase in Expenditure Limit: The bill authorizes an increase in the allowed expenditures outside of the TIF district by 15 percentage points for each city. This applies to the economic development authorities or housing and redevelopment authorities of Minnetonka, Richfield, and St. Louis Park.

  • Transfer to Housing Trust Funds: The increased amount of TIF funds that can be expended outside the district must be transferred to a housing trust fund established under section 462C.16.

  • Use of Transferred Funds:

    • For rental housing, the funds must benefit households earning at or below 80% of the area median income.
    • For homeownership purposes, the funds must benefit households at or below 120% of the area median income.

Significant Changes to Existing Law

  • Treatment of Transferred TIF Funds: The funds transferred to the housing trust funds will no longer be considered TIF funds as per section 469.174, subdivision 25. Thus, they will not be subjected to the annual reporting requirements usually imposed on TIF funds under section 469.175.

Relevant Terms

  • Tax Increment Financing (TIF)
  • Housing Trust Fund
  • Economic Development Authority
  • Housing and Redevelopment Authority
  • Area Median Income

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 16, 2025SenateFloorActionIntroduction and first reading
March 16, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Authorization for Minnetonka, Richfield, and St. Louis Park to increase outside the district expenditures by 15 percentage points."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill allows certain cities to increase expenditures outside their tax increment financing districts under section 469.1763, subdivision 2, paragraph d.",
      "modified": [
        ""
      ]
    },
    "citation": "469.1763",
    "subdivision": "subdivision 2, paragraph d"
  },
  {
    "analysis": {
      "added": [
        "Establishment of housing trust fund for increment transfers."
      ],
      "removed": [
        ""
      ],
      "summary": "This section is referenced to establish the housing trust fund for receiving transferred increment.",
      "modified": [
        ""
      ]
    },
    "citation": "462C.16",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Increment transferred to housing trust fund is no longer considered as increment under section 469.174, subdivision 25."
      ],
      "removed": [
        ""
      ],
      "summary": "Redefines the status of transferred increment under subdivision 25 of section 469.174.",
      "modified": [
        ""
      ]
    },
    "citation": "469.174",
    "subdivision": "subdivision 25"
  },
  {
    "analysis": {
      "added": [
        "Exemption of transferred increment from annual reporting requirements."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill exempts certain transfer increments from annual reporting requirements under section 469.175.",
      "modified": [
        ""
      ]
    },
    "citation": "469.175",
    "subdivision": ""
  }
]

Sponsors