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Marshall mayor asks committee to extend temporary TIF spending deadline for affordable housing project
Summary
House File 3,140 would extend the deadline to spend unobligated pooled tax increment to Dec. 31, 2027 for Marshall; city leaders said previous low-income housing tax credit applications were not selected and an extension would allow reapplication and preserve a planned affordable housing project.
The City of Marshall requested a two-year extension of temporary TIF spending authority in testimony before the House Tax Committee on April 9. Representative Andrew Swazinski moved House File 3,140, which seeks to extend the deadline to expend unobligated pooled tax increment from the current 2025 date to Dec. 31, 2027.
Bob Burns, mayor of Marshall, said the citywhich has used unobligated pooled increment for affordable housing in the pastneeds additional time because a planned project was not selected for Low Income Housing Tax Credits in 2023 and 2024 and the developers plan to reapply. "We are in a position where the project that we had are working on simply is not ready to be expended by that deadline," Burns said.
City Administrator Sharon Hansen explained the project's attempts to secure Minnesota Housing Finance Agency Low Income Housing Tax Credits and said the extension would allow reapplication in a different competitive round and preserve the city's ability to complete the affordable housing development.
Representative Swazinski renewed his motion to lay House File 3,140 over for possible inclusion in the omnibus tax bill.
Why it matters: Marshall officials said the extension is essential to complete an affordable housing development that supports workforce housing in southwest Minnesota after the project failed to secure tax credits in recent rounds. The measure would affect how local governments can use pooled TIF increment under the temporary authority.
Next steps: House File 3,140 was laid over for possible inclusion in the omnibus tax bill; sponsors said they would follow up with committee chairs on technical questions.
