CC PACKET 03221994 - Laserfiche WebLink

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OtWU4t Focus on the Issues A legislative session update on matters of policy for AMM member city officials lldsisoroiaratr Ranrvstr =xT Fmw Acr(ffir2174-OzFuw; BF1875-Motmata) This bill would establish a seven-county metropolitan reinvestment fund to provide loans and grants for cities that do not meet comprehensive choice housing goals(specifically not enough low-income housing)and for redevelopment of deteriorating areas.The proceeds would go into a hind handled by the Minnesota Housing Finance Agency(MMFA)governed by a governor-appointed five-member board(two metro,three non-metro).The MHFA would determine how the money is to be spent.One-third is allocated to meet housing goals and two-thirds for reinvestment. M The funds come from property tax on home values This run generates about $129 million for the in excess of$150,000 taxed at a metropolitan rate proposed fund. House Research estimates about similar to Fiscal Disparities. Approximately $129 $112 million. Actuals calculated by Minnetonka million would have been raised in 1993 had this are higher than either run. bill been in effect Value over $150,000 is estimated since no Because of a number of problems with the bill, records currently are kept at that breakpoint the AMM Board of Directors voted to oppose the. bill. HF2174/SF1875 would: 1. Create large Column one and two show 1993 excess tax property tax shifts; 2. Raise property taxes capacity and percent of total. The last two significantly to resolve housing problems; 3. columns show this for 1994 which indicate a Create hidden property tax increases;4.Provide one-year increase; e.g.. Minnetonka, 1993 - for distn'bution desicions for metropolitan-raised $5.2M/9.1%: 1994 - $6.OWIOA%; 1995 (not tax dollars to be made by a board whose shown)$72W12%. majority is non-metro, without specific project criteria or prioritization. The third from the last column may be the most important It shows the tax increase on all homes Attached is a property tax analysis. Please note under $150,000; e.g.. Brooklyn Park has less these caveats: than 1 percent value in the pool. but has a 4 percent overall tax increase because of county The property tax impact analysis is done for loss.Due to the difference in the one-year lag for payable 1993 taxes, so the data is two years old metro average,as homes increase in value above compared to payable 1995. However, it is very the $150,000 benchmark, the taxes paid may representative regarding a trend. actually decrease at a greater rate.