SF2041

This bill amends Minnesota’s tax increment financing (TIF) laws to expand the allowable uses of TIF revenues. Specifically, it permits the transfer of tax increments to local housing trust funds for use in affordable housing projects. The bill also sets requirements on how transferred funds must be used, including limiting the expenditures to specific housing-related activities. Additionally, it increases the percentage of TIF revenues that may be spent outside the district for qualifying housing projects and adds provisions for ensuring compliance with these financial limitations.

Key provisions include: - Allowing tax increments to be transferred to local housing trust funds established under Minnesota law. - Expanding the allowable uses of TIF expenditures outside the district for affordable housing initiatives. - Setting conditions for expenditures, such as supporting low-income housing projects and public improvements related to housing. - Adjusting spending limits and maintaining compliance with existing tax increment financing regulations.

The bill aims to encourage the development of affordable housing by providing greater flexibility in the use of TIF funds.