4.1. EDSR 04-25-2017 - Laserfiche WebLink

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MN Statute 4691.174 Subd. 10. Definition of a Housing district. "Housing district" means a type of tax increment financing district which consists of a project,or a portion of a project, intended for occupancy, in part, by persons or families of low and moderate income, as defined in chapter 462A, Title ll of the National Housing Act of 1934, the National Housing Act of 1959, the United States Housing Act of 1937, as amended, Title V of the Housing Act of 1949, as amended, any other similar present or future federal, state, or municipal legislation, or the regulations promulgated under any of those acts, and that satisfies the requirements of section 469.1761. Housing project means a project, or a portion of a project, that meets all of the qualifications of a housing district under this subdivision, whether or not actually established as,a housing district. Housing districts are subject to various income limitations and! requirements for residential property. For owner occupied residential property, at least 95% of the housing units assisted with tif must be initially purchased and occupied by individuals whose family income is less than or equal to the applicable income requirements,, The income limits for owner-occupied' units are 100%to 115%as adjusted for family size, For residential rental property, the property must satisfy the income requirements for a qualified residential rental project and follow the, low-income tax credit guidelines. The income requirements include that at least 20% of the units must be restricted for persons or families at 50%of area median income or 40%of the units restricted at 60%of area median income. Tax increment is generally used for financing of extraordinary and qualifying improvements deemed necessary for a new development to occur. Land acquisition, demolition,, site improvements, public improvements and infrastructure, utilities and related soft costs are generally eligible project costs. Actual construction costs related to a housing project can also typically be financed by tax increment revenues. The term of a Housing District is 25 years after receipt of first increment, MN Statute 469.176 S,ubd. 4d. Spending Limitations for a Housing District Revenue derived from tax increment from a housing district must be, used solely to finance the cost of housing projects as defined in sections 469.174, subdivision 11, and 469.17'61. The cost of public improvements directly related to the housing projects and the allocated administrative expenses of the authority may be included in the cost of a housing project.