Minnesota House of Representatives
Public Information Services

Menu

Public Information Services Menu

‘For Rent’ signs needed to bring jobs to Greater Minnesota?

By Chris Steller
Dan Dorman, left, executive director of the Greater Minnesota Partnership, and Abraham Algadi, center, executive director of the Worthington Regional Economic Development Corporation, testify before the House Job Growth and Energy Affordability Policy and Finance Committee in support of a bill sponsored by Rep. Rod Hamilton, right, that would establish a refundable workforce housing tax credit. Photo by Andrew VonBank

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:

  • consist of at least three units;
  • cost to build, on average, between $75,000-$250,000 per unit;
  • receive more than half its financing from other, non-state sources; and
  • not include financing that requires tenants’ incomes to fall under set limits, or that is for flood recovery.

The bill would restrict project sites to:

  • areas outside the seven-county Twin Cities metropolitan area;
  • census blocks with more than 200 persons per square mile or in Cook County;
  • cities with at least 500 jobs, as measured by the Quarterly Census of Employment and Wages; and
  • areas within 15 miles of a city where the rental housing vacancy rate has been no higher than 4 percent for two of the last five years.

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. 

Search Session Daily

Recent Dailies

Legislative leaders will sue governor over line-item veto

Leaders of the Republican-controlled Legislature are moving forward with their lawsuit against DF...

Governor still hopeful negotiations can solve legislative funding fight

Gov. Mark Dayton said Friday he remains hopeful his dispute with Republican legislative leaders o...

House, Senate head toward lawsuit over governor's legislative funding veto

See you in court. That was the message Friday from Republican House and Senate leadership in ...

Dayton signs budget bills into law, but showdown with lawmakers continues

DFL Gov. Mark Dayton announced Tuesday he would sign into law nine budget bills that make up the ...

Weary lawmakers pass final budget bills, wrap 2017 special session

(UPDATED AT 3:27 p.m. with Gov. Dayton reaction) Day three of the 2017 special session saw la...

Lawmakers pass bonding bill to close out special session

With all other omnibus budget bills agreed to, the House wrapped up the special session early Fri...

Lawmakers send governor bill to fund state government

Lawmakers late Thursday night OK’d the appropriations needed to fund state government agencies, v...

Despite veto threats, House passes mixed-bag uniform labor bill

Pleading for brevity as the Legislature entered its third day of a deadline-neglecting special se...

House repasses tax bill amended with extended Super Bowl bar hours

The omnibus tax bill, including a few extra hours for Super Bowl revelry, is headed to the govern...

With self-imposed deadline gone, Legislature still piecing together budget

When Gov. Mark Dayton, a DFLer, and Republican leaders House Speaker Kurt Daudt (R-Crown) and Sen...

Public Information Services  ·   175 State Office Building, Saint Paul, MN 55155   ·   Public.Information@house.mn