Increment tax financing districts eligible uses including transfers to local housing trust funds expansion provision

SF 2041 expands the eligible uses of tax increment financing (TIF) district revenue in Minnesota to include transfers to local housing trust funds. The bill allows TIF districts to allocate up to 25% of their tax increment revenue - previously restricted to in-district spending - to housing trust funds for affordable housing projects. These transfers must support housing meeting IRS Section 42 low-income criteria or specific price caps ($200,000 in metro areas, $125,000 elsewhere), including acquisition, construction, rehabilitation, or related public improvements. The change applies to all TIF districts, maintaining existing requirements for at least 75% (or 80% for certain districts) of TIF revenue to fund projects within the district.