The shortage of workforce housing is hampering some communities’ abilities to create jobs in Greater Minnesota.
Sponsored by Rep. Rod Hamilton (R-Mountain Lake), HF1020 is intended to spur construction of housing in rural areas and smaller cities where the number of jobs is outstripping available housing units.
It would create a refundable workforce housing tax credit, and give the Department of Employment and Economic Development $40 million to dole out to people who invest in qualifying developments. The money would be spread out over tax years 2018-23. Per the bill, “Any portion of credits not allocated by the commissioner for any taxable year does not cancel and shall be carried forward to the subsequent taxable year.”
The House Job Growth and Energy Affordability Policy and Finance Committee approved the bill Wednesday, sending it to the House Taxes Committee. The companion, SF785, sponsored by Sen. Mike Goggin (R-Red Wing), awaits action by the Senate Taxes Committee.
The credits would equal 40 percent of the investor’s investment, to a maximum of $1 million for a $2.5 million investment. Multiple investors in a single qualifying project would each be eligible.
For investors to be eligible, a project would have to:
The bill would restrict project sites to:
Rep. Karen Clark (DFL-Mpls) questioned the requirement that projects include no units for tenants who qualify for federal housing assistance. “Why would you want to exclude those lower income people?”
Abraham Algadi, executive director of the Worthington Regional Economic Development Corporation, said the market in that segment “is being taken care of.” The bill, he said, targets a gap in the market between housing for lower income people and higher-end, owner-occupied housing.
The Minnesota Supreme Court has ordered the Legislature and Gov. Mark Dayton to use mediation to resolve a funding dispute. In an opinion issued Friday, the court also ruled that Dayton’s use of the line-item veto to strip biennial funding for the Legislature was constitutional.
A Ramsey County judge on Wednesday ruled that Gov. Mark Dayton’s line-item veto of legislative funding violated the state’s constitution.
House and Senate leadership OK a resolution to seek outside legal representation in an effort to restore funding for the Legislature that Gov. Mark Dayton line-item vetoed earlier this week.
Day three of the 2017 special session saw lawmakers pass final omnibus bills to be sent to Gov. Mark Dayton, with weary House members wrapping up their work at 2:42 a.m. Friday following a week of long days — and nights — at the State Capitol.
Lawmakers on conference committees must sort through competing bills before finalizing a product to send to the governor.
The budget process explained — and why it matters
$45 billion plan is about a 10 percent increase over current biennium
Governor urges lawmakers to pass a big capital investment bill during budget-setting year; House Speaker has expressed doubt over bonding this session
It was a day of selfies, swearings-in and standing ovations as the House opened the 2017-18 biennial session Tuesday.