1.1    .................... moves to amend H.F. No. 2362, the delete everything amendment
1.2(A07-0842), as follows:
1.3Page 39, after line 26, insert:

1.6    Subdivision 1. Purpose. For the purpose of promoting economic diversity
1.7throughout Minnesota and to alleviate the concentration of low-income households in high
1.8poverty areas, a housing opportunity area property tax classification program is created.
1.9    Subd. 2. Definitions. (a) For purposes of this section, the following terms have
1.10the meanings given them.
1.11    (b) "Housing authority" means either a housing authority created under the Housing
1.12Authorities Act or other government agency that is authorized by the United States
1.13government under the United States Housing Act of 1937 to administer a housing choice
1.14voucher program, or the authorized agent of such a housing authority that is authorized
1.15to act on that authority's behalf.
1.16    (c) "Housing choice voucher" means a tenant voucher issued by a housing authority
1.17under section 8 of the United States Housing Act of 1937.
1.18    (d) "Housing opportunity area" means a census tract where less than ten percent of
1.19the residents live below the poverty level, as defined by the United States government and
1.20determined by the most recent United States census, that is located within a qualified city
1.21or town.
1.22    (e) "Housing opportunity unit" means a dwelling unit located in residential property
1.23that is located in a housing opportunity area, that is owned by the applicant, and that
1.24is rented to and occupied by a tenant who is participating in a housing choice voucher
1.25program administered by a housing authority as of January 1 of the taxes payable year for
1.26which the application is made.
2.1    (f) "Qualified units" means the number of housing opportunity units located in
2.2the property, with the limitation that no more than two units or 20 percent of the total
2.3units contained within the property, whichever is greater, may be considered qualified
2.4units. Further, no unit may be considered qualified unless the property in which it
2.5is contained is in substantial compliance with local building codes, and no unit may
2.6be considered qualified unless it meets the United States Department of Housing and
2.7Urban Development's housing quality standards as of the most recent housing authority
2.9    (g) "Qualified city or town" means a home rule charter or statutory city or town that
2.10is (1) located within a county with 200,000 or more inhabitants, and (2) whose net tax
2.11capacity per capita exceeds the average net tax capacity per capita of all cities or towns in
2.12the county in which it is located.
2.13    (h) "Tax capacity per capita" means the adjusted net tax capacity of all taxable
2.14real estate located within a city, town, or county divided by the total population of that
2.15city, town, or county.
2.16    Subd. 3. Application by owner; determination by housing authority. The owner
2.17of property located within a housing opportunity area who has a housing choice voucher
2.18contract with a housing authority may apply for housing opportunity area tax classification
2.19by annually submitting an application to the housing authority that administers the housing
2.20choice voucher contract. The application must include the number of housing opportunity
2.21units as well as the total number of dwelling units contained within the property. The
2.22housing authority shall annually determine the number of qualified units located within
2.23each property for which an application is made. The housing authority shall establish rules
2.24and procedures governing the application processes and may charge an application fee.
2.25    Subd. 4. Housing opportunity areas. The housing authority shall determine
2.26housing opportunity areas within its service area and annually deliver to the county
2.27auditor, in a manner determined by the county auditor, a list of all properties containing
2.28qualified units within that service area by December 31 of the assessment year for which
2.29the property is eligible for 4e classification as contained in section 273.13, subdivision 25,
2.30paragraph (f). The list must include the number of qualified units and the total number of
2.31dwelling units for each property.
2.32    Subd. 5. Exclusion by petition of municipality. Any home rule charter or statutory
2.33city or town may annually petition the county auditor to be excluded from a housing
2.34opportunity area if more than two percent of the total residential units located within
2.35that municipality are occupied by tenants under the housing choice voucher program.
3.1Properties located within an excluded municipality are not eligible for the housing
3.2opportunity area classification for the tax year in which the petition is made.
3.3EFFECTIVE DATE.This section is effective for taxes levied in 2007, payable
3.4in 2008, and thereafter."
3.5Page 51, after line 24, insert:
3.6    "(f) Class 4e property is qualifying housing opportunity area property as defined
3.7in section 273.129. The portion of a property determined to be eligible for housing
3.8opportunity area tax classification is class 4e property. The remaining portion of the
3.9building shall be classified by the assessor based upon its use. Class 4e also includes the
3.10same proportion of land as the qualifying housing opportunity units are to the total units in
3.11the building. For all properties qualifying as class 4e, the market value determined by the
3.12assessor must be based on the normal approach to value using normal unrestricted rents.
3.13Class 4e property has the same class rate as class 4d.
3.14EFFECTIVE DATE.This section is effective for taxes levied in 2007, payable
3.15in 2008, and thereafter."
3.16Page 51, line 30, after the period, insert "Paragraph (f) of this section is effective
3.17for taxes levied in 2007, payable in 2008, and thereafter."
3.18Renumber the sections in sequence and correct the internal references
3.19Amend the title accordingly