MN SF4038

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

Limits tax increment usage to 75 percent of generated revenue, with only eligible housing trusts (city-owned or 501(c)(3) nonprofits with five years of construction or rehabilitation experience) permitted to undertake activities.

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

Caps tax increment distribution to the city at 15 years from the certificate of occupancy date for any new building on district parcels; remaining tax increment distributed to other jurisdictions per current law.

Designates rehabilitated rental properties to be rented at pre-rehabilitation rates for a minimum of three years and permits trusts to accept donations and matching grants from foundations and philanthropic entities.