MN HF3588

Establishes an affordable housing market value exclusion program allowing eligible residential rental properties to receive a 50 percent market value exclusion for property tax purposes.

Property must be class 4a residential rental housing with construction beginning on or after January 1, 2023, and have at least 20 percent of units available to residents earning no more than 60 percent of area median income.

Cities must adopt resolutions to participate in the program and approve individual properties after publishing notice and allowing public input at least 30 days prior to the meeting.

The Minnesota Housing Finance Agency must certify eligible properties by March 1 each assessment year, with property owners submitting applications by February 1 and potentially paying an application fee.

Exclusion duration is determined by each participating city for 10 to 20 assessment years, and is removed if the property no longer meets eligibility requirements; effective beginning with assessment year 2023.