Bill
SF 1652
Minnesota bill caps rent increases on federally-subsidized low-income housing to preserve affordability but may reduce developer incentives for new affordable housing construction.
SF 1652 would impose rent increase limitations on low-income rental housing projects that receive Low-Income Housing Tax Credits (LIHTC), a federal tax incentive program. The bill restricts how much landlords can raise rents on units serving low-income tenants in these subsidized properties, likely tying increases to inflation or a fixed percentage rather than market rates.
Low-income housing tax credits are a primary federal tool for creating affordable housing, but properties can lose affordability protections after their initial compliance period. By capping rent increases on LIHTC properties, this bill attempts to preserve long-term affordability and prevent displacement of vulnerable renters as properties age. This directly affects thousands of low-income Minnesota households and housing developers' business models.
Compiled from official sources — confirm details with the bill’s official record.
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