SB 5366, after being delayed by the snow closure last week, will be heard on Thursday in its fiscal committee.

The proposal allows small cities – those under 15,000 in population – to utilize the Multifamily Tax Exemption Program, which is an optional property tax abatement to incentivize multifamily apartment construction. This tool would be available to small cities until July 1, 2022.

AWC will be testifying in support.

We encourage any cities who would like access to this tool to communicate with the Ways & Means Committee and your legislators.

SB 5363, sponsored by Sen. Palumbo (D–Maltby), creates a 12-year extension of the multifamily tax exemption if a local government adopts qualifying guidelines for the extension. The bill also allows a local government to adopt and implement more stringent income eligibility, rent, or sale price limits – including limits that apply to a higher percentage of units than the minimum conditions required for the first 12-year exemption period.

AWC supports this bill.

Dates to remember

SB 5366 & SB 5363 are both scheduled to be heard on Thursday, February 21 at 3:30 pm in the Senate Ways & Means Committee.