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Housing Improvement Areas <br />How are the improvements financed? <br />The city may finance the housing improvements by: <br />1)advancing funds available to the city and then recovering the costs by charging the property <br />owners fees; or <br />2)issuing bonds and then imposing fees to repay the bonds. The bonds are not included in the <br />city’s net debt and no election is required for their issuance. <br />In addition to adopting the ordinance establishing an HIA, the city must adopt a resolution imposing the <br />fees, and must provide public notice and hold a public hearing on the proposed resolution. Within six <br />months of the conclusion of the public hearing, the city may adopt the resolution. <br />Fees can be imposed on the basis of the tax capacity (value) of the housing unit, total square footage of <br />the housing unit, or a method determined by the city and specified in the resolution. Before a city uses <br />an alternative method to set fees, it must make a finding that the alternative basis is more fair and <br />reasonable. <br />The city, HRA, or EDA may collect the fees in the same manner as provided for the collection of property <br />taxes. The due dates, penalties, and interest applicable to property taxes apply to fees collected under <br />this authority. <br />What plans or reports are required? <br />Before the city imposes and collects the fee, the condominium or townhome association must develop a <br />long-term plan to maintain the complex. The plan must address operations, maintenance, and necessary <br />capital improvements of the common elements. It must identify financing for the projects. The <br />association must also submit its audited financial report to the city annually. <br />Are any other local units of government allowed to establish an HIA? <br />In 2014, the legislature passed a law authorizing the Ramsey County Housing and Redevelopment <br />Authority to exercise housing improvement district powers. This is the same authority granted to the <br />Dakota County Community Development Agency in 2013. <br />Minnesota House Research Department provides nonpartisan legislative, legal, and <br />information services to the Minnesota House of Representatives. This document <br />can be made available in alternative formats. <br />www.house.mn/hrd | 651-296-6753 | 600 State Office Building | St. Paul, MN 55155