MN SF4981

Authorizes use of tax increment financing revenues from redevelopment districts to fund adaptive reuse and conversion of vacant or underused commercial or industrial buildings to residential purposes.

Adds vacant, unused, underused, inappropriately used, or infrequently used property intended or recently occupied for commercial or industrial purposes as a qualifying condition for redevelopment districts.

Establishes that for redevelopment districts qualifying under the new commercial-to-residential conversion provision, the auditor shall certify only the land value as original net tax capacity for parcels containing commercial or industrial buildings determined to be vacant or underused.

Exempts redevelopment districts established to convert vacant or underused commercial or industrial buildings to residential purposes from the market value finding requirement otherwise required for tax increment financing approval.

Requires at least 90 percent of tax increment revenues from redevelopment districts to finance costs of correcting blighting conditions, including adaptive reuse to housing of property meeting the new vacant or underused commercial or industrial building criteria.