Agenda - Council Work Session - 08/27/2013

Home

25:14 Minn. Stat. § 428A.101. Minn. Stat. §§ 428A.11 - 428A.20. Housing Improvement Areas, House Research, Nov. 2010. Minn. Stat. § 428A.03, subd. la. Minn. Stat. § 471.345. Minn. Stat. § 428A.12. Minn. Stat. § 428A.20. Minn. Stat. § 428A.14, subd. 1. Minn. Stat. § 428A.18, subd. 2. Minn. Stat. § 428A.13. Minn. Stat. § 428A.14. CHAPTER 25 SSDs are another tool cities may use to make, and pay for, local improvements in certain areas of a city if business owners request it and where special services are rendered and paid for with revenues collected from service charges. Service district charges are not property tax levies, even though they are based on net tax capacity and are payable and collected in the same manner as property taxes. The service charges are not included in computations of tax increments, fiscal disparities, or any other law that applies to general ad valorem levies. Note: The establishment of a new special service districts after June 30, 2013, requires special legislation. C. Housing improvement areas In a very similar manner to SSDs, cities may use housing improvement areas (HIAs) to fund local improvements in common areas of townhouses or condominium neighborhoods. Note: After June 30, 2013, the establishment of a new HIA requires enactment of a special law authorizing the establishment. Prior to establishment of a housing improvement area, the governing body of the city must: • Provide full disclosure of public expenditures, as well as the terms of any loans, bonds, or other financing arrangements for housing improvement area projects; and • Determine whether the association or the city will contract for the housing improvements, and ensure that any contracts made by the implementing entity are subject to municipal contracting law. A petition from landowners initiates establishment of an HIA, not the city council. At least 50 percent of the affected property owners of the housing units potentially subject to fees in the proposed HIA must file a petition with the city clerk. The petition, filed with the city clerk, requests a public hearing on the establishment of an HIA and on the proposed fees. Additional statutory procedures apply to HIAs. The city council may specially assess housing improvements to property in an HIA in addition to the fees for improvements made pursuant to the HIA ordinance. If a fee is imposed on a basis other than the tax capacity or square footage of the housing unit, the council must make a finding that the alternative basis for the fee is more fair and reasonable. (Of course, a city doing so must follow all special assessment procedures in Chapter 429.) However, both an HIA ordinance and an HIA resolution setting fees may be vetoed. If 45 percent of the residents of housing units subject to the fees file an objection to the ordinance adopted by the with the city clerk before the effective date of the ordinance, it does not take effect. In addition, if owners of 45 percent or more of the housing units' tax capacity subject to the fee set by resolution file an objection with the city clerk before the effective date of the resolution, it does not become effective. This chapter last revised 12/1/2012 LEAGUE OF MINNESOTA CITIES