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<br />increments from the TIF district for the development of rental housing to serve <br />employees of businesses located in the municipality or the surrounding area. The <br />county board and school district must approve the TIF plan by resolution before it <br />qualifies for TIF. No requests for workforce housing TIF certification may be made <br />by a county auditor for request after June 30, 2027. This provision is effective for <br />TIF districts for which the request for certification was made after June 30, 2017. <br />o Housing TIF District Changes. The omnibus tax bill (First Special Session, <br />Chapter 1, HF 1/no SF) modifies Minnesota Statutes, Section 469.1761 to increase <br />the income limits for housing TIF districts that receive MHFA challenge program <br />Funds. For projects receiving MHFA challenge program funds, the income limits for <br />projects receiving TIF assistance increases to 80% of area median income. Current <br />income limits for housing TIF districts require that 20% of units be at 50% of area <br />median income or 40% of unit be at 60% of area median income. This provision is <br />effective for TIF districts for which the request for certification was made after June <br />30, 2017. <br />o Interfund Loan Modifications. The omnibus tax bill (First Special Session, <br />Chapter 1, HF 1/no SF) modifies Minnesota Statues, Section 469.178, subdivision 7 <br />to modify the interfund loan provisions of the TIF Act to make it easier for cities and <br />development authorities to make and document interfund loans. The changes allow <br />loans to be made up to 60 days after the money has already been transferred or spent. <br />Under existing law, the loan terms must be set before the loan is made. In addition, <br />the changes authorize passage of interfund loan resolutions before the TIF plan is <br />approved. The amendment authorizes rewriting loan terms after the loan has been <br />made, but before the TIF district is decertified. Finally, the amendments require <br />cities to file an annual report of the amount of interfund loans for the year made and <br />any amendments of terms for loans made in prior years. This provision is effective <br />May 31, 2017. <br />o Definition of Increment. The omnibus tax bill (First Special Session, Chapter 1, <br />HF 1/no SF) amends Minnesota Statutes, Section 469.1763, subdivision 1 of the TIF <br />Act to clarify terminology related to the tax increment pooling rules. This provision <br />is effective May 31, 2017. <br /> <br /> <br /> <br />3 <br />514669v1 JSB EL185-13 <br />