Rent increases limited in low-income rental projects receiving low-income housing tax credits.

HF 1605 limits rent increases for senior housing projects in Minnesota that receive federal low-income housing tax credits. It applies to units restricted to seniors under Minnesota law and receiving tax credits under federal Section 42. The bill restricts annual rent increases to the greater of: (1) the previous year's Social Security COLA minus 1%, or (2) zero percent. This directly affects low-income senior tenants in these specific federally subsidized housing projects by capping rent hikes. The law amends Minnesota Statutes section 462A.222 to add this rent limitation provision.