Star Tribune: Minneapolis approves use of tax subsidies for market-rate housing
The Minneapolis City Council approved the use of tax subsidies for a large housing complex of affordable housing. The project is an example of the public and private sectors coming together to improve affordable housing shortages in the region.
With tax-increment financing, cities use higher property taxes generated by a development for certain infrastructure needs. The TIF money for the market-rate building in Seward Commons would come only from taxes generated at that particular building.
Council members in support of using the subsidies felt it was important to look at all the affordable units the project was bringing.
“I think [the project] might actually help get more investment in the whole area and turn things around,” Council Member Cam Gordon said. “This is a historically industrial area that has had very little investment, especially housing.”
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