HF1605

This Minnesota bill, H.F. No. 1605, proposes a limitation on rent increases for certain low-income senior housing projects that receive Low-Income Housing Tax Credits (LIHTC). Specifically, the bill amends Minnesota Statutes 2024, section 462A.222, by adding a subdivision that restricts annual rent increases in qualifying rent-restricted units.

Under this legislation: - The limitation applies to housing projects designated for seniors (as defined in section 462A.37, subdivision 1, paragraph h). - These projects must receive LIHTC under Section 42 of the Internal Revenue Code. - Rent in any restricted unit cannot increase in any 12-month period by a percentage greater than: 1. The percentage increase in Social Security or Supplemental Security Income (SSI) benefits in the preceding 12 months, minus one percent, or
2. Zero percent, whichever is greater.

The bill aims to protect low-income seniors from excessive rent increases, ensuring affordability in housing projects supported by federal tax credits.