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Minneapolis council approves technical TIF plan changes, clears a path for possible pooling of funds for affordable housing
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Summary
Council approved bulk modifications to 59 Tax Increment Financing plans to clarify reporting required by the state auditor and to enable, where allowed by statute, potential future pooling for affordable housing; the underlying approval passed after debate (11 ayes, 1 nay).
The Minneapolis City Council on Dec. 11 approved a consolidated set of modifications to the city’s tax increment financing (TIF) plans that staff described as primarily technical clarifications required by guidance from the state auditor. City staff and several council members also said the action would allow, subject to future council review, the possibility of pooling excess increment from certain districts to support affordable housing projects.
Council member Angie Skildom, director of Development Finance (staff representative at the meeting), explained that the package addressed two buckets of change: (1) retroactive budget clarifications tied to 2021 special legislation and annual reporting requirements to the Office of the State Auditor; and (2) optional authorizations that would allow future pooling of excess increment in some districts to support affordable housing. Skildom told the council that delays could complicate the city’s annual reporting and create ongoing uncertainty.
Several members, including Council member Wansley and others, urged additional time to examine cross-jurisdictional impacts on Hennepin County and Minneapolis schools. Wansley cited a county letter urging caution and highlighted possible cascading effects on property tax levies. Council member Chowdhury pushed back, saying the move was consistent with statutory guidance and necessary to preserve the city’s ability to finance deeply affordable units.
After a failed motion to refer the matter back to staff, the council approved the modifications by roll call (11 ayes, 1 nay). City staff said any decision to pool funds toward housing would come back to council for approval in the future, and the council retains the authority to prioritize returning surplus increment to other taxing jurisdictions.
What happens next: The approved changes will be incorporated in the city’s annual TIF reporting and allow staff to evaluate pooling options district-by-district. Council members said they expect further analysis and future votes on individual district uses of increment.
