S.F. No. 4947 Summary

• Increases the permitted amount of tax increment financing district expenditures outside the geographic area of the district from 10 to 15 percentage points, but only for qualified housing assistance purposes.

• Allows tax increment financing districts to transfer increment revenues to local housing trust funds established under Minnesota Statutes section 462C.16, subject to income and use requirements.

• Requires transferred increment funds used for rental housing to benefit households at or below 60 percent of area median income and funds for homeownership to benefit households at or below 120 percent of area median income.

• Exempts increment transferred to housing trust funds from being considered district increment under Minnesota Statutes section 469.174 and removes it from annual reporting requirements under section 469.175.

• Makes both amendments effective the day following final enactment.