1.1 	A bill for an act
1.2 	relating to the city of Minneapolis; authorizing the city to establish a homeless 
1.3 	assistance tax increment district; providing the terms for creation and operation 
1.4 	of the district.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. CITY OF MINNEAPOLIS; HOMELESS ASSISTANCE TAX 
1.7 	INCREMENT DISTRICT.
 1.8 		Subdivision 1.Definitions. (a) "City" means the city of Minneapolis.
1.9 	(b) "Homeless assistance tax increment district" means a contiguous area of the 
1.10 	city that:
1.11 	(1) is no larger than six acres;
1.12 	(2) is located within the boundaries of a city municipal development district; and
1.13 	(3) contains at least two shelters for homeless persons that have been owned or 
1.14 	operated by nonprofit corporations that (i) are qualified charitable organizations under 
1.15 	section 501(c)(3) of the United States Internal Revenue Code, (ii) have operated such 
1.16 	homeless facilities within the district for at least five years, and (iii) have been recipients 
1.17 	of emergency services grants under Minnesota Statutes, section 256E.36.
1.18 		Subd. 2.Establishment of tax increment district. The city may create one 
1.19 	homeless assistance tax increment district. To establish the homeless assistance tax 
1.20 	increment district, the city shall adopt a homeless assistance tax increment plan and 
1.21 	otherwise comply with the requirements of Minnesota Statutes, section 469.175, except 
1.22 	that the determinations required in Minnesota Statutes, section 469.175, subdivision 3, 
1.23 	paragraph (b), clauses (1) and (2), items (i) and (ii), are not required.
2.1 		Subd. 3.Application of tax increment law. Minnesota Statutes, sections 469.174 
2.2 	to 469.179, shall apply to the administration of the district, except:
2.3 	(1) as this section provides otherwise; and
2.4 	(2) with respect to the portion of the increment to be expended for homeless shelter 
2.5 	and services pursuant to subdivision 5, paragraph (b):
2.6 	(i) the use for which tax increment that may be expended is as provided by 
2.7 	subdivision 5; and
2.8 	(ii) Minnesota Statutes, sections 469.1761 and 469.1763, do not apply.
2.9 		Subd. 4.Duration limitation. No tax increment generated by the district shall 
2.10 	be paid to the city after the expiration of 25 years from the receipt by the city of the 
2.11 	first increment from that district.
2.12 		Subd. 5.Limitations on use of increment. (a) All increment received by the city 
2.13 	from the district shall be used in accordance with the homeless assistance tax increment 
2.14 	district plan.
2.15 	(b) No less than 40 percent of the increment, after deduction of allowable 
2.16 	administrative expenses under Minnesota Statutes, section 469.176, subdivision 3, shall 
2.17 	be used to provide emergency shelter and services for homeless persons within and 
2.18 	outside the district.
2.19 	(c) The remainder of the tax increment derived from the district shall be used for 
2.20 	purposes allowed under Minnesota Statutes, section 469.176, subdivision 4.
2.21 		Subd. 6.Applicability of other laws. References in Minnesota Statutes to tax 
2.22 	increment financing districts created and tax increment generated under Minnesota 
2.23 	Statutes, sections 469.174 to 469.179, include the homeless assistance district and tax 
2.24 	increment subject to this section.

2.25 	EFFECTIVE DATE. This section is effective upon compliance by the city of 
2.26 	Minneapolis with Minnesota Statutes, section 645.021.