MN HF5144

Modifies Minnesota Statutes 273.128 to specify requirements for class 4d(1) low-income rental housing property tax classification, requiring at least 20 percent of units to meet qualifying low-income criteria including Section 8 housing assistance contracts, tax credit projects, Rural Housing Service financing, or other government-assisted units with income and rent restrictions.

Requires assisted units to be occupied by residents whose household income at initial occupancy does not exceed 60 percent of area or state median income (adjusted for family size) and rents must not exceed 30 percent of that same income threshold.

Mandates that property owners use tax savings from the 4d(1) classification for eligible uses including property maintenance, security, improvements, rent stabilization, or increases to replacement reserves.

Requires property owners to annually reapply and certify to the Housing Finance Agency that tax savings were used for eligible purposes to maintain the 4d(1) classification.

Effective beginning with assessment year 2025.