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HF 2324

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.

2025-2026 Regular Session Introduced by Patty Acomb and 4 co-sponsors

The bill allows transferring TIF increments from three cities to local housing trust funds and sets requirements on how those transferred funds must be used.

Introduction and first reading, referred to Taxes
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Bill Summary · HF 2324

Summary of HF 2324 (Minnetonka, Richfield, and St. Louis Park)

Overview

  • Bill Number: HF 2324
  • Title: 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
  • Purpose: To expand how tax increment financing (TIF) increments may be used in three cities (Minnetonka, Richfield, and St. Louis Park) by allowing transfers of TIF increment to local housing trust funds and by establishing requirements governing the use of those transferred increments.
  • Status: Introduction and first reading, referred to Taxes
  • Introduced: March 13, 2025
  • Related bill: SF 2667 (companion)

Key Provisions (as indicated by the bill’s title and description)

  • Expanded eligible uses of TIF increment: The bill would add transfers of TIF increment to local housing trust funds as an eligible use of TIF increment for the specified cities (Minnetonka, Richfield, and St. Louis Park).
  • Use of transferred increments: The bill would impose or establish requirements on how the transferred TIF increments must be used by the receiving housing trust funds or in connection with the TIF districts.
  • Geographic/applicability: The changes would apply to the TIF districts within the three named cities.
  • Relationship to existing TIF framework: The proposal modifies current permissible uses of TIF increments by including transfers to housing trusts and prescribing requirements for those transfers.

Affected Parties

  • Local governments and TIF districts in:
    • Minnetonka
    • Richfield
    • St. Louis Park
  • Local housing trust funds and housing-related entities within these cities
  • Developers and property owners participating in TIF districts in the three cities
  • City housing and economic development offices and related oversight bodies

Procedural and Timeline Aspects

  • Introduced and first reading completed on March 13, 2025.
  • Referred to the House Committee on Taxes for consideration.
  • Companion bill: SF 2667 (senate companion)

Potential Impacts and Considerations

  • Housing Finance: By permitting transfers of TIF increments to local housing trust funds, the bill could bolster local affordable housing funding and leverage TIF resources for housing-related projects.
  • Local Control and Oversight: The transfer mechanism and the accompanying requirements would likely require new administrative processes, reporting, and oversight within the affected cities.
  • Fiscal Effects: The changes could alter the flow of tax increment dollars from TIF districts to housing initiatives, potentially impacting public revenue streams used for other TIF purposes.
  • Implementation Timeline: As a first-reading measure, any specific implementation timeline or rulemaking would emerge through committee discussion and potential amendments.

For readers seeking more detail, monitoring the House Taxes committee actions and the companion SF 2667 would provide the progression and any proposed language clarifications or refinements.

Compiled from official sources — confirm details with the bill’s official record.

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