Minnetonka, Richfield, and St. Louis Park; eligible uses of increment from tax increment financing districts expanded to include transfers to local housing trust funds, and use of transferred increment requirements imposed.

This bill expands tax increment financing (TIF) revenue uses for Minnetonka, Richfield, and St. Louis Park. It allows these cities to redirect up to 15% more TIF revenue (previously limited to local projects) to transfer directly to local housing trust funds. Funds transferred must support rental housing for households at or below 80% of area median income or homeownership for households at or below 120% of area median income. The transferred funds no longer count as TIF revenue for annual reporting purposes under state law.