S.8345 Summary

• Expands the definition of "multiple dwelling" to include "converted multiple dwellings" (conversion of pre-existing buildings to Class A multiple dwellings), with requirements that at least 75% of original perimeter walls or 50% of original floor area remain in place.

• Extends the tax exemption period from 3 years to 6 years for new multiple dwellings with construction commencing between January 1, 2007 and June 30, 2009, with extended phase-in schedules for partial exemptions.

• Applies converted multiple dwelling provisions across multiple exemption programs with specific affordability requirements (20% of units affordable to families at 100% of area median income) and subsidy/grant assistance conditions.

• Creates new subdivision 16 allowing eligible buildings to receive a 12% tax on shelter rent (instead of full exemption) after their initial exemption period expires, with mandatory 20% affordable unit requirement for 35 years.

• Modifies requirements for converted dwellings on leased land to include average annual ground rent in maintenance cost calculations and deems converted dwelling sites as "under-utilized" without need for site requirement compliance.