MN HF2542

Increases the permitted amount of tax increment financing (TIF) revenue that can be expended outside a district for qualified low-income housing from the current limits to up to 10 percentage points above existing thresholds (75-80% in-district requirement).

Expands eligible housing to include any property occupied by one to four family dwelling units on which a mortgage was foreclosed, provided redemption periods have expired, removing previous restrictions on vacancy duration and principal residence requirements.

Allows qualified expenditures for low-income housing to cover site acquisition, relocation, demolition, site preparation, rehabilitation, and pollution abatement on one or more parcels.

Limits the market value of assisted housing to the lesser of 150% of average single-family home value in the municipality or $200,000 (metropolitan areas) / $125,000 (other areas).

Sets December 31, 2016, as the expiration date for this expanded authority, though previously approved bonds and contracts may continue to be funded beyond that date.