MN HF4468

Creates a Housing Restoration Tax Increment Financing District in Minneapolis consisting of four noncontiguous parcels anticipated for future development within a municipal development district.

Allows only eligible housing trusts (city-owned or nonprofit 501(c)(3) entities with five years of experience in home construction or rental property rehabilitation) to undertake permitted activities in the district.

Permits eligible housing trusts to construct and sell new single-family homes, purchase and rehabilitate substandard vacant houses or rental properties, and provide forgivable second mortgage financing to buyers who occupy homes for a minimum of ten years.

Limits tax increment use to a maximum of 75 percent for district activities, with the remaining increment distributed to other jurisdictions, and caps tax increment payments to the city at 15 years from the certificate of occupancy date.

Requires rehabilitated rental properties to maintain pre-rehabilitation rent levels for a minimum of three years and allows trusts to accept donations and matching grants from foundations and philanthropic entities.