Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

HF 2335

1st Unofficial Engrossment - 93rd Legislature (2023 - 2024) Posted on 09/29/2023 11:02am

KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13
1.14 1.15
1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27
2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 3.35 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 6.34 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 7.33 7.34 7.35 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 8.33 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 9.33 9.34 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 10.33 10.34 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 11.32 11.33 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32 12.33 12.34 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 13.32 13.33 13.34 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26 14.27 14.28 14.29 14.30 14.31 14.32 14.33 14.34 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31 15.32 15.33 15.34 16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31 16.32 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 17.32 17.33 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22
18.23 18.24
18.25 18.26 18.27 18.28 18.29 18.30 18.31 18.32 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28 19.29
19.30 19.31 19.32 19.33 20.1 20.2
20.3 20.4 20.5 20.6
20.7 20.8 20.9 20.10
20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18 20.19
20.20 20.21 20.22 20.23 20.24 20.25
20.26 20.27 20.28 20.29 21.1 21.2
21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.30 21.31 21.32 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29 22.30 22.31 23.1 23.2
23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27
23.28 23.29 23.30 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22
24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14 25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32 25.33 25.34 26.1 26.2 26.3 26.4
26.5 26.6 26.7 26.8 26.9 26.10 26.11 26.12 26.13 26.14 26.15 26.16 26.17 26.18 26.19 26.20 26.21 26.22 26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 26.31 26.32 26.33 27.1 27.2 27.3 27.4 27.5 27.6 27.7
27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20
27.21 27.22 27.23 27.24 27.25 27.26
27.27 27.28 27.29 27.30 27.31 28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 28.9 28.10 28.11 28.12 28.13 28.14 28.15 28.16
28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29
28.30 28.31 28.32 29.1 29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31 30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8
30.9 30.10 30.11 30.12 30.13 30.14 30.15 30.16 30.17 30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24 31.25 31.26 31.27 31.28 31.29 31.30 31.31 31.32 32.1 32.2 32.3 32.4 32.5 32.6 32.7 32.8 32.9 32.10 32.11 32.12 32.13 32.14 32.15 32.16 32.17 32.18 32.19 32.20
32.21
32.22 32.23 32.24 32.25 32.26
32.27
33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21 33.22
33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31 33.32 33.33 34.1 34.2
34.3 34.4 34.5 34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23 34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31 34.32 34.33 35.1 35.2 35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30 35.31 35.32
36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8
36.9 36.10 36.11 36.12 36.13 36.14 36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28
36.29 36.30 36.31 36.32 37.1 37.2 37.3
37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9
38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26 38.27 38.28 38.29 38.30 38.31 38.32 38.33
39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28 39.29 39.30 39.31 39.32 40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12
40.13 40.14 40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 40.29 40.30 40.31 40.32 40.33 41.1 41.2 41.3 41.4 41.5 41.6 41.7
41.8
41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30 41.31 41.32 42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28 42.29 42.30 42.31 42.32
43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 43.32 43.33 44.1 44.2 44.3 44.4 44.5 44.6
44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22
44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 44.31 45.1 45.2 45.3 45.4 45.5
45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13
45.14 45.15 45.16 45.17 45.18 45.19 45.20 45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11
46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 46.30 47.1 47.2 47.3 47.4 47.5 47.6 47.7
47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 48.32 48.33 48.34 49.1 49.2 49.3 49.4 49.5
49.6 49.7 49.8 49.9 49.10

A bill for an act
relating to state government; establishing a budget for the Minnesota Housing
Finance Agency; making policy and technical changes to housing provisions;
establishing housing programs; appropriating money; requiring reports; authorizing
the sale and issuance of housing infrastructure bonds; requiring financial review
of grantees; amending Minnesota Statutes 2022, sections 462A.05, subdivision
14, by adding subdivisions; 462A.201, subdivision 2; 462A.2035, subdivision 1b;
462A.204, subdivisions 3, 8; 462A.21, subdivision 3b; 462A.22, subdivision 1;
462A.36, subdivision 4, by adding a subdivision; 462A.37, subdivisions 1, 2, 4,
5, by adding subdivisions; 462A.38, subdivision 1; 462A.39, subdivisions 2, 5;
Laws 2021, First Special Session chapter 8, article 1, section 3, subdivision 11;
proposing coding for new law in Minnesota Statutes, chapter 462A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

HOUSING APPROPRIATIONS

Section 1. new text begin APPROPRIATIONS.
new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agency
for the purposes specified in this article. The appropriations are from the general fund, or
another named fund, and are available for the fiscal years indicated for each purpose. The
figures "2024" and "2025" used in this article mean that the appropriations listed under them
are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively. "The
first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium" is
fiscal years 2024 and 2025.
new text end

new text begin APPROPRIATIONS
new text end
new text begin Available for the Year
new text end
new text begin Ending June 30
new text end
new text begin 2024
new text end
new text begin 2025
new text end

Sec. 2. new text begin HOUSING FINANCE AGENCY
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 811,048,000
new text end
new text begin $
new text end
new text begin 254,548,000
new text end

new text begin (a) The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin (b) Unless otherwise specified, this
appropriation is for transfer to the housing
development fund for the programs specified
in this section. Except as otherwise indicated,
this transfer is part of the agency's permanent
budget base.
new text end

new text begin Subd. 2. new text end

new text begin Challenge Program
new text end

new text begin 62,925,000
new text end
new text begin 62,925,000
new text end

new text begin (a) This appropriation is for the economic
development and housing challenge program
under Minnesota Statutes, sections 462A.33
and 462A.07, subdivision 14.
new text end

new text begin (b) Of this amount, $6,292,500 each year shall
be made available during the first 11 months
of the fiscal year exclusively for housing
projects for American Indians. Any funds not
committed to housing projects for American
Indians within the annual consolidated request
for funding processes may be available for
any eligible activity under Minnesota Statutes,
sections 462A.33 and 462A.07, subdivision
14.
new text end

new text begin (c) Of the amount in the first year,
$10,000,000 is for a grant to Urban
Homeworks to expand initiatives pertaining
to deeply affordable homeownership in
Minneapolis neighborhoods with over 40
percent of residents identifying as Black,
Indigenous, or People of Color and at least 40
percent of residents making less than 50
percent of the area median income. The grant
is to be used for acquisition, rehabilitation,
and construction of homes to be sold to
households with incomes of 50 to 60 percent
of the area median income. This is a onetime
appropriation, and is available until June 30,
2027. By December 15 each year until 2027,
Urban Homeworks must submit a report to
the chairs and ranking minority members of
the legislative committees having jurisdiction
over housing finance and policy. The report
must include the amount used for (1)
acquisition, (2) rehabilitation, and (3)
construction of housing units, along with the
number of housing units acquired,
rehabilitated, or constructed, and the amount
of the appropriation that has been spent. If any
home was sold or transferred within the year
covered by the report, Urban Homeworks must
include the price at which the home was sold,
as well as how much was spent to complete
the project before sale.
new text end

new text begin (d) The base for this program in fiscal year
2026 and beyond is $12,925,000.
new text end

new text begin Subd. 3. new text end

new text begin Workforce Housing Development
new text end

new text begin 22,000,000
new text end
new text begin 22,000,000
new text end

new text begin (a) This appropriation is for the Greater
Minnesota workforce housing development
program under Minnesota Statutes, section
462A.39. If requested by the applicant and
approved by the agency, funded properties
may include a portion of income and rent
restricted units. Funded properties may include
owner-occupied homes.
new text end

new text begin (b) The base for this program in fiscal year
2026 and beyond is $2,000,000.
new text end

new text begin Subd. 4. new text end

new text begin Manufactured Home Park
Infrastructure Grants and Loans
new text end

new text begin 13,500,000
new text end
new text begin 13,500,000
new text end

new text begin (a) This appropriation is for manufactured
home park infrastructure grants and loans
under Minnesota Statutes, section 462A.2035,
subdivision 1b.
new text end

new text begin (b) The base for this program in fiscal year
2026 and beyond is $1,000,000.
new text end

new text begin (c) By January 15 each year, the commissioner
must submit a report on the use of funds in
this subdivision to the chairs and ranking
minority members of the legislative
committees having jurisdiction over housing
finance and policy. The report must include
the following information:
new text end

new text begin (1) grants and loans requested and funded
during the prior fiscal year, organized by
ownership type of the manufactured home
park, such as private, cooperative, and
municipal ownership, and by county;
new text end

new text begin (2) the average amount of grants and loans
awarded;
new text end

new text begin (3) loans requested and loans funded during
the prior fiscal year, organized by ownership
type of the manufactured home park, such as
private, cooperative, and municipal ownership,
and by county;
new text end

new text begin (4) the average amount of loans issued;
new text end

new text begin (5) information regarding the terms of the
loans; and
new text end

new text begin (6) information about how repaid loan funds
were used.
new text end

new text begin Subd. 5. new text end

new text begin Workforce Homeownership Program
new text end

new text begin 17,750,000
new text end
new text begin 17,750,000
new text end

new text begin (a) This appropriation is for the workforce
homeownership program under Minnesota
Statutes, section 462A.38.
new text end

new text begin (b) The base for this program in fiscal year
2026 and beyond is $250,000.
new text end

new text begin Subd. 6. new text end

new text begin Housing Trust Fund
new text end

new text begin 26,646,000
new text end
new text begin 16,646,000
new text end

new text begin (a) This appropriation is for deposit in the
housing trust fund account created under
Minnesota Statutes, section 462A.201, and
may be used for the purposes provided in that
section.
new text end

new text begin (b) $10,000,000 in the first year is for grants
to low-income persons eligible under
Minnesota Statutes, section 462A.201,
subdivision 2, to purchase shares in
limited-equity cooperative housing units.
Grants are limited to $20,000 or 25 percent of
the cost of a share, whichever is less. This
paragraph expires on June 30, 2027, and any
money remaining on June 30, 2027, shall be
returned to the housing trust fund account.
new text end

new text begin (c) The base for this program for fiscal year
2026 and beyond is $11,646,000.
new text end

new text begin Subd. 7. new text end

new text begin Homework Starts with Home
new text end

new text begin 4,250,000
new text end
new text begin 4,250,000
new text end

new text begin (a) This appropriation is for the homework
starts with home program under Minnesota
Statutes, sections 462A.201, subdivision 2,
paragraph (a), clause (4), and 462A.204,
subdivision 8, to provide assistance to
homeless families, those at risk of
homelessness, or highly mobile families.
new text end

new text begin (b) The base for this program in fiscal year
2026 and beyond is $1,750,000.
new text end

new text begin Subd. 8. new text end

new text begin Rental Assistance for Mentally Ill
new text end

new text begin 9,338,000
new text end
new text begin 9,338,000
new text end

new text begin (a) This appropriation is for the rental housing
assistance program for persons with a mental
illness or families with an adult member with
a mental illness under Minnesota Statutes,
section 462A.2097. Among comparable
proposals, the agency shall prioritize those
proposals that target, in part, eligible persons
who desire to move to more integrated,
community-based settings.
new text end

new text begin (b) Notwithstanding any law to the contrary,
this appropriation may be used for risk
mitigation funds, landlord incentives, or other
costs necessary to decrease the risk of
homelessness, as determined by the agency.
new text end

new text begin (c) The base for this program in fiscal year
2026 and beyond is $4,338,000.
new text end

new text begin Subd. 9. new text end

new text begin Family Homeless Prevention
new text end

new text begin 60,269,000
new text end
new text begin 10,269,000
new text end

new text begin (a) This appropriation is for the family
homeless prevention and assistance program
under Minnesota Statutes, section 462A.204.
new text end

new text begin (b) Up to $5,000,000 in fiscal year 2024 is for
grants to eligible applicants to create or expand
risk mitigation programs to reduce landlord
financial risks for renting to persons eligible
under Minnesota Statutes, section 462A.204.
Eligible programs may use funds for
administrative costs, outreach and coordination
staff, and to reimburse landlords for costs
including but not limited to nonpayment of
rent, or damage costs above those costs
covered by security deposits. This
appropriation may be used for staffing costs
necessary to implement the program. The
agency may give priority to applicants that
demonstrate a matching amount of money by
a local unit of government, business, or
nonprofit organization. Grantees must
establish a procedure to review and validate
claims and reimbursements under this
program. This is a onetime appropriation.
new text end

new text begin (c) For fiscal year 2024 and fiscal year 2025,
qualified families may receive more than 24
months of rental assistance.
new text end

new text begin (d) If the agency determines that the
metropolitan area needs additional support to
serve homeless households or those at risk of
homelessness, the agency is authorized to
grant funds to entities other than counties in
the metropolitan area, including but not limited
to nonprofit organizations.
new text end

new text begin (e) When a new grantee works with a current
or former grantee in a given geographic area,
a new grantee may work with either an
advisory committee as required under
Minnesota Statutes, section 462A.204,
subdivision 6, or the local continuum of care
and is not required to meet the requirements
of Minnesota Statutes, section 462A.204,
subdivision 4.
new text end

new text begin (f) Notwithstanding any law to the contrary,
$10,000,000 of this appropriation is allocated
to federally recognized American Indian
Tribes located in Minnesota. The funds shall
be divided proportionally among the Tribes
and shall be used for the purposes allowed
under this section.
new text end

new text begin (g) $2,400,000 in fiscal year 2024 is for a
grant to Neighborhood House, a Ramsey
County-based nonprofit organization, to
provide administrative costs for families facing
eviction, rental assistance, delinquent utility
fees, mortgage assistance, and damage deposit
assistance. This is a onetime appropriation.
new text end

new text begin (h) The base for this program in fiscal year
2026 and beyond is $10,269,000.
new text end

new text begin Subd. 10. new text end

new text begin Home Ownership Assistance Fund
new text end

new text begin 13,385,000
new text end
new text begin 13,385,000
new text end

new text begin (a) This appropriation is for the home
ownership assistance program under
Minnesota Statutes, section 462A.21,
subdivision 8. The agency shall continue to
strengthen its efforts to address the disparity
gap in the homeownership rate between white
households and indigenous American Indians
and communities of color. To better
understand and address the disparity gap, the
agency is required to collect, on a voluntary
basis, demographic information regarding
race, color, national origin, and sex of
applicants for agency programs intended to
benefit homeowners and homebuyers.
new text end

new text begin (b) The base for this program in fiscal year
2026 and beyond is $885,000.
new text end

new text begin Subd. 11. new text end

new text begin Affordable Rental Investment Fund
new text end

new text begin 4,218,000
new text end
new text begin 4,218,000
new text end

new text begin (a) This appropriation is for the affordable
rental investment fund program under
Minnesota Statutes, section 462A.21,
subdivision 8b, to finance the acquisition,
rehabilitation, and debt restructuring of
federally assisted rental property and for
making equity take-out loans under Minnesota
Statutes, section 462A.05, subdivision 39.
new text end

new text begin (b) The owner of federally assisted rental
property must agree to participate in the
applicable federally assisted housing program
and to extend any existing low-income
affordability restrictions on the housing for
the maximum term permitted.
new text end

new text begin (c) The appropriation also may be used to
finance the acquisition, rehabilitation, and debt
restructuring of existing supportive housing
properties and naturally occurring affordable
housing as determined by the commissioner.
For purposes of this paragraph, "supportive
housing" means affordable rental housing with
links to services necessary for individuals,
youth, and families with children to maintain
housing stability.
new text end

new text begin Subd. 12. new text end

new text begin Owner-Occupied Housing
Rehabilitation
new text end

new text begin 2,772,000
new text end
new text begin 2,772,000
new text end

new text begin (a) This appropriation is for the rehabilitation
of owner-occupied housing under Minnesota
Statutes, section 462A.05, subdivisions 14 and
14a.
new text end

new text begin (b) Notwithstanding any law to the contrary,
grants or loans under this subdivision may be
made without rent or income restrictions of
owners or tenants. To the extent practicable,
grants or loans must be made available
statewide.
new text end

new text begin Subd. 13. new text end

new text begin Rental Housing Rehabilitation
new text end

new text begin 3,743,000
new text end
new text begin 3,743,000
new text end

new text begin (a) This appropriation is for the rehabilitation
of eligible rental housing under Minnesota
Statutes, section 462A.05, subdivision 14. In
administering a rehabilitation program for
rental housing, the agency may apply the
processes and priorities adopted for
administration of the economic development
and housing challenge program under
Minnesota Statutes, section 462A.33, and may
provide grants or forgivable loans if approved
by the agency.
new text end

new text begin (b) Notwithstanding any law to the contrary,
grants or loans under this subdivision may be
made without rent or income restrictions of
owners or tenants. To the extent practicable,
grants or loans must be made available
statewide.
new text end

new text begin Subd. 14. new text end

new text begin Homeownership Education,
Counseling, and Training
new text end

new text begin 2,357,000
new text end
new text begin 2,357,000
new text end

new text begin (a) This appropriation is for the
homeownership education, counseling, and
training program under Minnesota Statutes,
section 462A.209.
new text end

new text begin (b) The base for this program in fiscal year
2026 and beyond is $857,000.
new text end

new text begin Subd. 15. new text end

new text begin Capacity-Building Grants
new text end

new text begin 5,230,000
new text end
new text begin 5,230,000
new text end

new text begin (a) This appropriation is for capacity-building
grants under Minnesota Statutes, section
462A.21, subdivision 3b. Of this amount, up
to $125,000 each year is for support of the
Homeless Management Information System
(HMIS), and $85,000 in fiscal year 2024 and
$85,000 in fiscal year 2025 are for Open
Access Connections. The appropriations for
Open Access Connections are onetime.
new text end

new text begin (b) $445,000 in fiscal year 2024 is for a grant
to the Community Stabilization Project to: (1)
deliver services and curriculum to renters and
property owners in order to preserve deeply
affordable rental units in underrepresented
communities; (2) help create entry-level
employment opportunities for renters; and (3)
construct a secure space for documents and
identification for those experiencing
homelessness. This is a onetime appropriation.
new text end

new text begin (c) The base for this program in fiscal year
2026 and beyond is $645,000.
new text end

new text begin Subd. 16. new text end

new text begin Build Wealth Minnesota
new text end

new text begin 5,500,000
new text end
new text begin 500,000
new text end

new text begin (a) $500,000 each year is for a grant to Build
Wealth Minnesota to provide a family
stabilization plan program.
new text end

new text begin (b) $5,000,000 the first year is for a grant to
Build Wealth Minnesota for the 9,000 Equities
Fund, a targeted loan pool, to provide
affordable first mortgages or equivalent
financing opportunities to households
struggling to access mortgages in underserved
communities of color. Of this amount, up to
$1,000,000 may be used for a grant to
Stairstep Foundation to support completion of
the Family Stabilization Plan program
developed by Build Wealth Minnesota. This
is a onetime appropriation.
new text end

new text begin Subd. 17. new text end

new text begin Housing Infrastructure
new text end

new text begin 100,000,000
new text end
new text begin 0
new text end

new text begin This appropriation is for the housing
infrastructure program for the eligible
purposes under Minnesota Statutes, section
462A.37, subdivision 2. This is a onetime
appropriation.
new text end

new text begin Subd. 18. new text end

new text begin Community Stabilization
new text end

new text begin 100,000,000
new text end
new text begin -0-
new text end

new text begin This appropriation is for the community
stabilization program under Minnesota
Statutes, section 462A.43. Of this amount,
$30,000,000 is for a grant to the Minneapolis
Public Housing Authority for the city of
Minneapolis and its affiliated entities,
including but not limited to its wholly
controlled nonprofit corporation, Community
Housing Resources, to rehabilitate, preserve,
equip, and repair its deeply affordable family
housing units. This a onetime appropriation.
new text end

new text begin Subd. 19. new text end

new text begin Supportive Housing
new text end

new text begin 40,000,000
new text end
new text begin 0
new text end

new text begin This appropriation is for the supportive
housing program under Minnesota Statutes,
section 462A.42. This is a onetime
appropriation.
new text end

new text begin Subd. 20. new text end

new text begin First Generation Homebuyer
new text end

new text begin 100,000,000
new text end
new text begin 0
new text end

new text begin This appropriation is for the first generation
homebuyer program down payment assistance
fund. This is a onetime appropriation.
new text end

new text begin Subd. 21. new text end

new text begin Local Housing Trust Fund Grants
new text end

new text begin 10,000,000
new text end
new text begin 0
new text end

new text begin (a) $8,000,000 in fiscal year 2024 is for
deposit in the housing development fund for
grants to local housing trust funds established
under Minnesota Statutes, section 462C.16,
to incentivize local funding. This is a onetime
appropriation.
new text end

new text begin (b) A grantee is eligible to receive a grant
amount equal to 100 percent of the public
revenue committed to the local housing trust
fund from any source other than the state or
federal government, up to $150,000, and in
addition, an amount equal to 50 percent of the
public revenue committed to the local housing
trust fund from any source other than the state
or federal government that is more than
$150,000 but not more than $300,000.
new text end

new text begin (c) $100,000 of the amount appropriated in
paragraph (a) is for technical assistance grants
to local and regional housing trust funds. A
housing trust fund may apply for a technical
assistance grant at the time and in the manner
and form required by the agency. The agency
shall make grants on a first-come, first-served
basis. A technical assistance grant must not
exceed $5,000.
new text end

new text begin (d) A grantee must use grant funds within
eight years of receipt for purposes (1)
authorized under Minnesota Statutes, section
462C.16, subdivision 3, and (2) benefiting
households with incomes at or below 115
percent of the state median income. A grantee
must return any grant funds not used for these
purposes within eight years of receipt to the
commissioner of the Minnesota Housing
Finance Agency for deposit into the housing
development fund.
new text end

new text begin (e) $2,000,000 in fiscal year 2024 is for a grant
to Northland Foundation. Northland
Foundation may use the funds on expenditures
authorized under Minnesota Statutes, section
462C.16, subdivision 3, and on assisting local
governments to establish local or regional
housing trust funds. Northland Foundation
may award grants and loans to other entities
to expend on authorized expenditures under
this section. This is a onetime appropriation
and is available until June 30, 2025.
new text end

new text begin Subd. 22. new text end

new text begin Greater Minnesota Housing
Infrastructure Grant Program
new text end

new text begin 5,000,000
new text end
new text begin 0
new text end

new text begin This appropriation is for a pilot program to
provide grants to municipalities for up to 50
percent of the costs of infrastructure that
would otherwise be required to be paid by the
developer for new housing developments. The
grants shall be limited to 16 housing units in
the municipality and a maximum of $12,000
per housing unit. This is a onetime
appropriation.
new text end

new text begin Subd. 23. new text end

new text begin Stable Rental Housing Mediation
new text end

new text begin 4,000,000
new text end
new text begin 0
new text end

new text begin This appropriation is for housing mediation
grants under Minnesota Statutes, section
462A.2098. This is a onetime appropriation.
Of this amount, up to $300,000 may be used
for administrative costs under Minnesota
Statutes, section 462A.2098, subdivision 3.
new text end

new text begin Subd. 24. new text end

new text begin Manufactured Home Park Cooperative
Purchase Program
new text end

new text begin 10,000,000
new text end
new text begin 0
new text end

new text begin (a) This appropriation is for loans under this
subdivision.
new text end

new text begin (b) The funding under this subdivision may
be used for a revolving loan fund under
Minnesota Statutes, section 462A.05,
subdivision 35, to provide interest-free loans
for residents of manufactured home parks to
purchase the manufactured home park in
which they reside for the purpose of
conversion of the manufactured home park to
cooperative ownership. Repayments of
principal from loans issued under this section
must be used for the purposes of this
subdivision.
new text end

new text begin (c) The agency may develop criteria for loan
requests under this subdivision. Within 90
days of final enactment, the commissioner
shall develop the forms, applications, and
reporting requirements for use by eligible
organizations. In developing these materials,
the commissioner shall consult with
manufactured housing cooperatives,
resident-owned manufactured home
communities, and nonprofit organizations
working with manufactured housing
cooperatives and resident-owned communities.
new text end

new text begin (d) Borrowers must use funds to assist in the
creation and preservation of housing that is
affordable to households with incomes at or
below 80 percent of the greater of state or area
median income.
new text end

new text begin (e) A deed purchased with a loan under this
section must contain a covenant running with
the land requiring that the land be used as a
manufactured home park for 30 years from
the date of purchase.
new text end

new text begin (f) For the purposes of this subdivision, the
terms "manufactured home," "manufactured
home park," and "resident" have the meanings
given in Minnesota Statutes, section 327C.015.
new text end

new text begin (g) By January 15 each year, the commissioner
must submit a report to the chairs and ranking
minority members of the legislative
committees with jurisdiction over housing
finance and policy detailing the use of funds
under this section. The report must include the
following information:
new text end

new text begin (1) the number and amount of loans issued;
new text end

new text begin (2) the amount of loans that have been repaid;
new text end

new text begin (3) the amount of interest earned within the
fund and the remaining balance of the
revolving loan fund;
new text end

new text begin (4) the number of residents included in each
project; and
new text end

new text begin (5) the location of each project.
new text end

new text begin Subd. 25. new text end

new text begin Manufactured Home Lending Grants
new text end

new text begin 25,000,000
new text end
new text begin 0
new text end

new text begin This appropriation is for the manufactured
home lending grant program. This is a onetime
appropriation.
new text end

new text begin Subd. 26. new text end

new text begin Lead Safe Homes Grant Program
new text end

new text begin 5,000,000
new text end
new text begin 0
new text end

new text begin This appropriation is for the lead safe homes
grant program under Minnesota Statutes,
section 462A.2096. This is a onetime
appropriation.
new text end

new text begin Subd. 27. new text end

new text begin High-Rise Sprinkler System Grant
Program
new text end

new text begin 10,000,000
new text end
new text begin 0
new text end

new text begin This appropriation is for the high-rise sprinkler
system grant program. Of this amount, up to
$4,000,000 must be for a grant to
CommonBond Communities for installation
of sprinkler systems at two buildings known
as Seward Tower West located at 2515 South
9th Street in Minneapolis and Seward Tower
East located at 2910 East Franklin Avenue in
Minneapolis. This is a onetime appropriation.
new text end

new text begin Subd. 28. new text end

new text begin Rent Assistance Program
new text end

new text begin 65,665,000
new text end
new text begin 65,665,000
new text end

new text begin (a) This appropriation is for the rent assistance
program under Minnesota Statutes, section
462A.2095. This appropriation is available
until June 30, 2027. Up to five percent of the
amount may be used in the first year to set up
the program.
new text end

new text begin (b) The base for this program in fiscal year
2026 and beyond is $10,000,000.
new text end

new text begin Subd. 29. new text end

new text begin Homeownership Investment Grants
Program
new text end

new text begin 80,000,000
new text end
new text begin 0
new text end

new text begin This appropriation is for the homeownership
investment grants program. This is a onetime
appropriation.
new text end

new text begin Subd. 30. new text end

new text begin Housing Cost Reduction Incentive
Program
new text end

new text begin 2,500,000
new text end
new text begin 0
new text end

new text begin This appropriation is for the housing cost
reduction incentive program under Minnesota
Statutes, section 462A.41. This is a onetime
appropriation.
new text end

new text begin Subd. 31. new text end

new text begin Availability and Transfer of Funds
new text end

new text begin Money appropriated in the first year in this
article is available the second year. The
commissioner may shift or transfer money in
the second year in subdivisions 2, 3, 4, 5, 11,
12, and 13 to address high-priority housing
needs.
new text end

new text begin Subd. 32. new text end

new text begin Report to Legislature
new text end

new text begin (a) By January 15, 2024; January 15, 2025;
and January 15, 2026, the commissioner shall
submit a report to the chairs and ranking
minority members of the legislative
committees having jurisdiction over housing
finance and policy containing the following
information about each of the programs funded
in this act:
new text end

new text begin (1) the amount expended and the remaining
balance from each program;
new text end

new text begin (2) grant awards, including the amounts and
geographic distribution of the awards; and
new text end

new text begin (3) the number of housing units that are
affected by each grant including new and
rehabilitated owner-occupied homes, new and
rehabilitated rental units, and new and
rehabilitated manufactured homes, as reported
in paragraph (b).
new text end

new text begin (b) The commissioner shall require any entity
that receives a grant for new construction or
housing rehabilitation from a program funded
in this act to submit the following information
prior to receiving the grant award, and at the
conclusion of the grant:
new text end

new text begin (1) the number of newly constructed rental
units;
new text end

new text begin (2) the number of newly constructed
owner-occupied units;
new text end

new text begin (3) the number of units to be used as rentals
that were rehabilitated; and
new text end

new text begin (4) the number of units to be owner-occupied
that were rehabilitated.
new text end

ARTICLE 2

HOUSING POLICY

Section 1.

Minnesota Statutes 2022, section 462A.05, subdivision 14, is amended to read:


Subd. 14.

Rehabilitation loans.

It may agree to purchase, make, or otherwise participate
in the making, and may enter into commitments for the purchase, making, or participation
in the making, of eligible loans for rehabilitation, with terms and conditions as the agency
deems advisable, to persons and families of low and moderate income, and to owners of
existing residential housing for occupancy by such persons and families, for the rehabilitation
of existing residential housing owned by them. new text begin Rehabilitation may include the addition or
rehabilitation of a detached accessory dwelling unit.
new text end The loans may be insured or uninsured
and may be made with security, or may be unsecured, as the agency deems advisable. The
loans may be in addition to or in combination with long-term eligible mortgage loans under
subdivision 3. They may be made in amounts sufficient to refinance existing indebtedness
secured by the property, if refinancing is determined by the agency to be necessary to permit
the owner to meet the owner's housing cost without expending an unreasonable portion of
the owner's income thereon. No loan for rehabilitation shall be made unless the agency
determines that the loan will be used primarily to make the housing more desirable to live
in, to increase the market value of the housing, for compliance with state, county or municipal
building, housing maintenance, fire, health or similar codes and standards applicable to
housing, or to accomplish energy conservation related improvements. In unincorporated
areas and municipalities not having codes and standards, the agency may, solely for the
purpose of administering the provisions of this chapter, establish codes and standards. No
loan under this subdivision for the rehabilitation of owner-occupied housing shall be denied
solely because the loan will not be used for placing the owner-occupied residential housing
in full compliance with all state, county, or municipal building, housing maintenance, fire,
health, or similar codes and standards applicable to housing. Rehabilitation loans shall be
made only when the agency determines that financing is not otherwise available, in whole
or in part, from private lenders upon equivalent terms and conditions. Accessibility
rehabilitation loans authorized under this subdivision may be made to eligible persons and
families without limitations relating to the maximum incomes of the borrowers if:

(1) the borrower or a member of the borrower's family requires a level of care provided
in a hospital, skilled nursing facility, or intermediate care facility for persons with
developmental disabilities;

(2) home care is appropriate; and

(3) the improvement will enable the borrower or a member of the borrower's family to
reside in the housing.

The agency may waive any requirement that the housing units in a residential housing
development be rented to persons of low and moderate income if the development consists
of four or deleted text begin lessdeleted text end new text begin fewernew text end dwelling units, one of which is occupied by the owner.

Sec. 2.

Minnesota Statutes 2022, section 462A.05, is amended by adding a subdivision to
read:


new text begin Subd. 42. new text end

new text begin Indian Tribes. new text end

new text begin Notwithstanding any other provision in this chapter, at its
discretion the agency may make any federally recognized Indian Tribe in Minnesota, or
their associated Tribally Designated Housing Entity (TDHE) as defined by United States
Code, title 25, section 4103(22), eligible for funding authorized under this chapter.
new text end

Sec. 3.

Minnesota Statutes 2022, section 462A.05, is amended by adding a subdivision to
read:


new text begin Subd. 43. new text end

new text begin Rent assistance program. new text end

new text begin The agency may administer the rent assistance
program established in section 462A.2095.
new text end

Sec. 4.

Minnesota Statutes 2022, section 462A.05, is amended by adding a subdivision to
read:


new text begin Subd. 44. new text end

new text begin Housing disparities. new text end

new text begin The agency must prioritize its use of appropriations for
any program under this chapter to serve households most affected by housing disparities.
new text end

Sec. 5.

Minnesota Statutes 2022, section 462A.05, is amended by adding a subdivision to
read:


new text begin Subd. 45. new text end

new text begin Special purpose credit program. new text end

new text begin The agency may establish special purpose
credit programs to assist one or more economically disadvantaged classes of persons in
order to address the effects of historic and current discrimination which resulted in limiting
access to housing credit by persons on the basis of race, color, ethnicity, or national origin.
A special purpose credit program may include a wide variety of remedies, including but
not limited to loans or other financial assistance, based on current, documented need as
determined by the agency.
new text end

Sec. 6.

Minnesota Statutes 2022, section 462A.2035, subdivision 1b, is amended to read:


Subd. 1b.

Manufactured home park infrastructure grantsnew text begin and loansnew text end .

Eligible
recipients may use manufactured home park infrastructure grantsnew text begin and loansnew text end under this
program for:

(1) acquisition of and improvements in manufactured home parks; and

(2) infrastructure, including storm shelters and community facilities.

Sec. 7.

Minnesota Statutes 2022, section 462A.204, subdivision 3, is amended to read:


Subd. 3.

Set aside.

At least one grant must be awarded in an area located outside of the
metropolitan area. A county, a group of contiguous counties jointly acting together, a Tribe,
a group of Tribes, or a community-based nonprofit organization deleted text begin with a sponsoring resolution
from each of the county boards of the counties located within its operating jurisdiction
deleted text end may
apply for and receive grants deleted text begin for areas located outside the metropolitan areadeleted text end .

Sec. 8.

new text begin [462A.2095] RENT ASSISTANCE PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin The state rent assistance account is established
as a separate account in the housing development fund. Money in the account is appropriated
to the agency for grants to program administrators for the purposes specified in this section.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the
meanings given.
new text end

new text begin (b) "Eligible household" means a household with an annual income of up to 50 percent
of the area median income as determined by the United States Department of Housing and
Urban Development, adjusted for family size, that is paying more than 30 percent of the
household's annual income on rent. Eligibility is determined at the time a household first
receives rent assistance under this section. Eligibility shall be recertified every year thereafter.
Eligible household does not include a household receiving federal tenant-based or
project-based assistance under Section 8 of the United States Housing Act of 1937, as
amended.
new text end

new text begin (c) "Program administrator" means:
new text end

new text begin (1) a housing and redevelopment authority or other local government agency or authority
that administers federal tenant-based or project-based assistance under Section 8 of the
United States Housing Act of 1937, as amended;
new text end

new text begin (2) a Tribal government or Tribally designated housing entity; or
new text end

new text begin (3) if the local housing authority, Tribal government, or Tribally designated housing
entity declines to administer the program established in this section, a nongovernmental
organization determined by the agency to have the capacity to administer the program.
new text end

new text begin Subd. 3. new text end

new text begin Grants to program administrators. new text end

new text begin (a) The agency may make grants to
program administrators to provide rental assistance for eligible households. For both
tenant-based and project-based assistance, program administrators shall pay assistance
directly to housing providers. Rental assistance may be provided in the form of tenant-based
assistance or project-based assistance. To the extent practicable, the agency must make
grants statewide in proportion to the number of households eligible for assistance in each
county according to the most recent American Community Survey of the United States
Census Bureau.
new text end

new text begin (b) The program administrator may use its existing procedures to administer the rent
assistance program or may develop alternative procedures with the goals of reaching
households most in need and incentivizing landlord participation. The agency must approve
a program administrator's alternative procedures. Priority for rental assistance shall be given
to households with children 18 years of age and under, and annual incomes of up to 30
percent of the area median income.
new text end

new text begin Subd. 4. new text end

new text begin Amount of rent assistance. new text end

new text begin A program administrator may provide tenant-based
or project-based vouchers in amounts equal to the difference between 30 percent of household
income and the rent charged, plus an allowance for utilities if not included in rent. A program
administrator may not provide assistance that is more than the difference between 30 percent
of the tenant's gross income and 120 percent of the payment standard, plus utilities, as
established by the local public housing authority, unless otherwise authorized by the agency.
new text end

new text begin Subd. 5. new text end

new text begin Administrative fees. new text end

new text begin The agency shall consult with public housing authorities
to determine the amount of administrative fees to pay to program administrators.
new text end

new text begin Subd. 6. new text end

new text begin Rent assistance not income. new text end

new text begin (a) Rent assistance grant money under this section
is excluded from income as defined in sections 290.0674, subdivision 2a, and 290A.03,
subdivision 3.
new text end

new text begin (b) Notwithstanding any law to the contrary, payments under this section must not be
considered income, assets, or personal property for purposes of determining eligibility or
recertifying eligibility for state public assistance, including but not limited to:
new text end

new text begin (1) child care assistance programs under chapter 119B;
new text end

new text begin (2) general assistance, Minnesota supplemental aid, and food support under chapter
256D;
new text end

new text begin (3) housing support under chapter 256I;
new text end

new text begin (4) Minnesota family investment program and diversionary work program under chapter
256J; and
new text end

new text begin (5) economic assistance programs under chapter 256P.
new text end

new text begin (c) The commissioner of human services must not consider rent assistance grant money
under this section as income or assets under section 256B.056, subdivision 1a, paragraph
(a); subdivision 3; or subdivision 3c, or for persons with eligibility determined under section
256B.057, subdivision 3, 3a, or 3b.
new text end

new text begin Subd. 7. new text end

new text begin Oversight. new text end

new text begin The agency may direct program administrators to comply with
applicable sections of Code of Federal Regulations, title 24, part 982.
new text end

Sec. 9.

new text begin [462A.2096] LEAD SAFE HOMES GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of the Minnesota Housing Finance
Agency must establish and administer a grant program to support making homes safer
through lead testing and hazard reduction.
new text end

new text begin Subd. 2. new text end

new text begin Eligible projects. new text end

new text begin (a) The commissioner may award a grant under this section
for any project that will:
new text end

new text begin (1) provide lead risk assessments completed by a lead inspector or a lead risk assessor
licensed by the commissioner of health pursuant to section 144.9505 for properties built
before 1978 to determine the presence of lead hazards;
new text end

new text begin (2) provide interim controls to reduce lead health hazards; and
new text end

new text begin (3) serve low-income residents. For multifamily rental properties, at least 50 percent of
the tenants must have an income below 60 percent of the area median income.
new text end

new text begin (b) The commissioner must give priority to funding projects that serve areas where there
are high concentrations of lead poisoning in children based on information provided by the
commissioner of health.
new text end

new text begin (c) The commissioner must not award a grant unless all other available state and federal
funding sources related to lead testing and hazard reduction for which an applicant is eligible
are used.
new text end

new text begin (d) The commissioner must balance grant awards so that projects occur within and
outside metropolitan counties as defined in section 473.121, subdivision 4.
new text end

new text begin (e) Up to ten percent of a grant award may be used to administer the grant and provide
education and outreach about lead health hazards.
new text end

new text begin Subd. 3. new text end

new text begin Grant eligibility. new text end

new text begin A nonprofit organization or local unit of government may
apply for a grant under this section.
new text end

new text begin Subd. 4. new text end

new text begin Short title. new text end

new text begin This section shall be known as the "Dustin Luke Shields Act."
new text end

Sec. 10.

new text begin [462A.2098] MINNESOTA HOUSING MEDIATION GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; purpose. new text end

new text begin The agency shall establish a housing mediation
program to reduce negative consequences to renters, rental property owners, families,
schools, employers, neighborhoods, and communities by providing support to renters and
residential rental property owners.
new text end

new text begin Subd. 2. new text end

new text begin Selection criteria. new text end

new text begin The agency shall award grants to community dispute
resolution programs certified under section 494.015. The agency shall develop forms and
procedures for soliciting and reviewing applications for grants under this section.
new text end

new text begin Subd. 3. new text end

new text begin Administration. new text end

new text begin The agency shall award a grant to Community Mediation
Minnesota to administrate the housing mediation program to ensure effective statewide
management, program design, and outreach among the grantees.
new text end

new text begin Subd. 4. new text end

new text begin Authorized uses of grant. new text end

new text begin The grant funding must be used to:
new text end

new text begin (1) provide housing dispute resolution services;
new text end

new text begin (2) increase awareness of and access to housing dispute resolution services statewide;
new text end

new text begin (3) provide alternative dispute resolution services, including but not limited to eviction
prevention, mediation, and navigation services;
new text end

new text begin (4) partner with culturally specific dispute resolution programs to provide training and
assistance with virtual and in-person mediation services;
new text end

new text begin (5) increase mediation services for seniors and renters with disabilities and illnesses that
face housing instability;
new text end

new text begin (6) increase the diversity and cultural competency of the housing mediator roster;
new text end

new text begin (7) integrate housing mediation services with navigation and resource connection services,
legal assistance, and court services programs; and
new text end

new text begin (8) develop and administer evaluation tools to design, modify, and replicate effective
program outcomes.
new text end

Sec. 11.

Minnesota Statutes 2022, section 462A.201, subdivision 2, is amended to read:


Subd. 2.

Low-income housing.

(a) The agency may use money from the housing trust
fund account to provide loans or grants for:

(1) projects for the development, construction, acquisition, preservation, and rehabilitation
of low-income rental and limited equity cooperative housing units, including temporary
and transitional housing;

(2) the costs of operating rental housing, as determined by the agency, that are unique
to the operation of low-income rental housing or supportive housing;

(3) rental assistance, either project-based or tenant-based; and

(4) programs to secure stable housing for families with new text begin minor children or with new text end children
eligible for enrollment in a prekindergarten through grade 12 academic program.

For purposes of this section, "transitional housing" has the meaning given by the United
States Department of Housing and Urban Development. Loans or grants for residential
housing for migrant farmworkers may be made under this section.

(b) The housing trust fund account must be used for the benefit of persons and families
whose income, at the time of initial occupancy, does not exceed 60 percent of median income
as determined by the United States Department of Housing and Urban Development for the
metropolitan area. At least 75 percent of the funds in the housing trust fund account must
be used for the benefit of persons and families whose income, at the time of initial occupancy,
does not exceed 30 percent of the median family income for the metropolitan area as defined
in section 473.121, subdivision 2. For purposes of this section, a household with a housing
assistance voucher under Section 8 of the United States Housing Act of 1937, as amended,
is deemed to meet the income requirements of this section.

The median family income may be adjusted for families of five or more.

(c) Rental assistance under this section must be provided by governmental units which
administer housing assistance supplements or by for-profit or nonprofit organizations
experienced in housing management. Rental assistance shall be limited to households whose
income at the time of initial receipt of rental assistance does not exceed 60 percent of median
income, as determined by the United States Department of Housing and Urban Development
for the metropolitan area. Priority among comparable applications for tenant-based rental
assistance will be given to proposals that will serve households whose income at the time
of initial application for rental assistance does not exceed 30 percent of median income, as
determined by the United States Department of Housing and Urban Development for the
metropolitan area. Rental assistance must be terminated when it is determined that 30 percent
of a household's monthly income for four consecutive months equals or exceeds the market
rent for the unit in which the household resides plus utilities for which the tenant is
responsible. Rental assistance may only be used for rental housing units that meet the housing
maintenance code of the local unit of government in which the unit is located, if such a code
has been adopted, or the housing quality standards adopted by the United States Department
of Housing and Urban Development, if no local housing maintenance code has been adopted.

(d) In making the loans or grants, the agency shall determine the terms and conditions
of repayment and the appropriate security, if any, should repayment be required. To promote
the geographic distribution of grants and loans, the agency may designate a portion of the
grant or loan awards to be set aside for projects located in specified congressional districts
or other geographical regions specified by the agency. The agency may adopt rules for
awarding grants and loans under this subdivision.

Sec. 12.

Minnesota Statutes 2022, section 462A.204, subdivision 8, is amended to read:


Subd. 8.

deleted text begin Schooldeleted text end new text begin Childhood housingnew text end stability.

(a) The agency in consultation with the
Interagency Council on Homelessness may establish a deleted text begin schooldeleted text end new text begin childhood housingnew text end stability
project under the family homeless prevention and assistance program. The purpose of the
project is to secure stable housing for families with deleted text begin school-agedeleted text end new text begin minor new text end children new text begin or with
children eligible for enrollment in a prekindergarten through grade 12 academic program
new text end who have moved frequently and for unaccompanied youth. For purposes of this subdivision,
"unaccompanied youth" are minors who are leaving foster care or juvenile correctional
facilities, or minors who meet the definition of a child in need of services or protection
under section 260C.007, subdivision 6, but for whom no court finding has been made
pursuant to that statute.

(b) The agency shall make grants to family homeless prevention and assistance projects
in communities withnew text begin : (1)new text end a school or schools that have a significant degree of student
mobilitynew text begin ; (2) a significant degree of homelessness among families with minor children; or
(3) children eligible for enrollment in a prekindergarten through grade 12 academic program
new text end .

(c) Each project must be designed to reduce school absenteeism; stabilize children in
one home setting or, at a minimum, in one school setting; and reduce shelter usage. Each
project must include plans for the following:

(1) targeting of families with new text begin minor children or with new text end children deleted text begin who aredeleted text end eligible fornew text begin
enrollment in
new text end a prekindergarten through grade 12 academic program deleted text begin anddeleted text end new text begin whonew text end are living in
overcrowded conditions in their current housing; are paying more than 50 percent of their
income for rent; or deleted text begin whodeleted text end lack a fixed, regular, and adequate nighttime residence;

(2) targeting of unaccompanied youth in need of an alternative residential setting;

(3) connecting families with the social services necessary to maintain the families'
stability in their home, including but not limited to housing navigation, legal representation,
and family outreach; and

(4) one or more of the following:

(i) provision of rental assistance for a specified period of time, which may exceed 24
months; or

(ii) provision of support and case management services to improve housing stability,
including but not limited to housing navigation and family outreach.

(d) In selecting projects for funding under this subdivision, preference shall be given to
organizations granted funding under section 462A.201, subdivision 2, paragraph (a), clause
(4).

(e) No grantee under this subdivision is required to have an advisory committee as
described in subdivision 6.

Sec. 13.

Minnesota Statutes 2022, section 462A.21, subdivision 3b, is amended to read:


Subd. 3b.

Capacity building grants.

It may make capacity building grants to nonprofit
organizations, local government units, Indian tribes, and Indian tribal organizations to
expand their capacity to provide affordable housing and housing-related services. The grants
may be used to assess housing needs and to develop and implement strategies to meet those
needs, including new text begin but not limited to new text end the creation or preservation of affordable housing,
prepurchase and postpurchase counseling and associated administrative costs, and the linking
of supportive services to the housing. The agency shall adopt rulesnew text begin , policies, and proceduresnew text end
specifying the eligible uses of grant money. Funding priority deleted text begin mustdeleted text end new text begin maynew text end be given to those
applicants that include low-income persons in their membership, have provided
housing-related services to low-income people, and demonstrate a local commitment of
local resources, which may include in-kind contributions. deleted text begin Grants under this subdivision
may be made only with specific appropriations by the legislature.
deleted text end

Sec. 14.

Minnesota Statutes 2022, section 462A.22, subdivision 1, is amended to read:


Subdivision 1.

Debt ceiling.

The aggregate principal amount of bonds and notes new text begin that
are general obligations of the agency and secured by its full faith and credit, as described
in section 462A.08, subdivision 3, and
new text end which are outstanding at any time, excluding the
principal amount of any bonds and notes refunded by the issuance of new bonds or notes,
shall not exceed the sum of $5,000,000,000.

Sec. 15.

Minnesota Statutes 2022, section 462A.36, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

new text begin Refunding bonds. new text end

new text begin (a) The agency may issue nonprofit housing bonds in one
or more series to refund bonds authorized in subdivision 2. The amount of refunding nonprofit
housing bonds that may be issued from time to time will not be subject to the dollar limitation
contained in subdivision 2 nor will those bonds be included in computing the amount of
bonds that may be issued within that dollar limitation.
new text end

new text begin (b) In the refunding of nonprofit housing bonds, each bond must be called for redemption
prior to its maturity in accordance with its terms no later than the earliest date on which it
may be redeemed. No refunding bonds may be issued unless as of the date of the refunding
bonds the present value of the dollar amount of the debt service on the refunding bonds,
computed to their stated maturity dates, is lower than the present value of the dollar amount
of debt service on all nonprofit housing bonds refunded computed to their stated maturity
dates. For purposes of this subdivision, "present value of the dollar amount of debt service"
means the dollar amount of debt service to be paid, discounted to the nominal date of the
refunding bonds at a rate equal to the yield on the refunding bonds.
new text end

new text begin (c) If as a result of the issuance of refunding bonds the amount of debt service for an
annual period is less than the amount transferred by the commissioner of management and
budget to pay debt service for that annual period, the agency must deduct the excess amount
from the actual amount of debt service on those bonds certified for the next subsequent
annual period.
new text end

Sec. 16.

Minnesota Statutes 2022, section 462A.36, subdivision 4, is amended to read:


Subd. 4.

Appropriation; payment to agency or trustee.

(a) The agency must certify
annually to the commissioner of management and budget the actual amount of annual debt
service on each series of bonds issued under subdivision 2.

(b) Each July 15, beginning in 2009 and through 2031, if any nonprofit housing bonds
issued under subdivision 2new text begin , or nonprofit housing bonds issued to refund those bonds,new text end remain
outstanding, the commissioner of management and budget must transfer to the nonprofit
housing bond account established under section 462A.21, subdivision 32, the amount
certified under paragraph (a), not to exceed $2,400,000 annually. The amounts necessary
to make the transfers are appropriated from the general fund to the commissioner of
management and budget.

(c) The agency may pledge to the payment of the nonprofit housing bonds the payments
to be made by the state under this section.

Sec. 17.

Minnesota Statutes 2022, section 462A.37, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given.

(b) "Abandoned property" has the meaning given in section 117.025, subdivision 5.

(c) "Community land trust" means an entity that meets the requirements of section
462A.31, subdivisions 1 and 2.

(d) "Debt service" means the amount payable in any fiscal year of principal, premium,
if any, and interest on housing infrastructure bonds and the fees, charges, and expenses
related to the bonds.

(e) "Foreclosed property" means residential property where foreclosure proceedings
have been initiated or have been completed and title transferred or where title is transferred
in lieu of foreclosure.

(f) "Housing infrastructure bonds" means bonds issued by the agency under this chapter
that:

(1) are qualified 501(c)(3) bonds, within the meaning of section 145(a) of the Internal
Revenue Code;

(2) finance qualified residential rental projects within the meaning of section 142(d) of
the Internal Revenue Code;new text begin or
new text end

deleted text begin (3) finance the construction or rehabilitation of single-family houses that qualify for
mortgage financing within the meaning of section 143 of the Internal Revenue Code; or
deleted text end

deleted text begin (4)deleted text end new text begin (3)new text end are tax-exempt bonds that are not private activity bonds, within the meaning of
section 141(a) of the Internal Revenue Code, for the purpose of financing or refinancing
affordable housing authorized under this chapter.

(g) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.

(h) "Senior" means a person 55 years of age or older deleted text begin with an annual income not greater
than 50 percent of:
deleted text end new text begin .
new text end

deleted text begin (1) the metropolitan area median income for persons in the metropolitan area; or
deleted text end

deleted text begin (2) the statewide median income for persons outside the metropolitan area.
deleted text end

new text begin (i) "Senior household" means a household with one or more senior members and with
an annual combined income not greater than 50 percent of:
new text end

new text begin (1) the metropolitan area median income for persons in the metropolitan area; or
new text end

new text begin (2) the statewide median income for persons outside the metropolitan area.
new text end

deleted text begin (i)deleted text end new text begin (j)new text end "Senior housing" means housing intended and operated for occupancy by deleted text begin at least
one senior per unit
deleted text end new text begin senior householdsnew text end with at least 80 percent of the units occupied by deleted text begin at
least one senior per unit
deleted text end new text begin senior householdsnew text end , and for which there is publication of, and
adherence to, policies and procedures that demonstrate an intent by the owner or manager
to provide housing for seniors. Senior housing may be developed in conjunction with and
as a distinct portion of mixed-income senior housing developments that use a variety of
public or private financing sources.

deleted text begin (j)deleted text end new text begin (k)new text end "Supportive housing" means housing that is not time-limited and provides or
coordinates with linkages to services necessary for residents to maintain housing stability
and maximize opportunities for education and employment.

Sec. 18.

Minnesota Statutes 2022, section 462A.37, subdivision 2, is amended to read:


Subd. 2.

Authorization.

(a) The agency may issue up to $30,000,000 in aggregate
principal amount of housing infrastructure bonds in one or more series to which the payment
made under this section may be pledged. The housing infrastructure bonds authorized in
this subdivision may be issued to fund loans, or grants for the purposes of deleted text begin clausedeleted text end new text begin clausesnew text end
(4)new text begin and (7)new text end , on terms and conditions the agency deems appropriate, made for one or more
of the following purposes:

(1) to finance the costs of the construction, acquisition, and rehabilitation of supportive
housing for individuals and families who are without a permanent residence;

(2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned
housing to be used for affordable rental housing and the costs of new construction of rental
housing on abandoned or foreclosed property where the existing structures will be demolished
or removed;

(3) to finance that portion of the costs of acquisition of property that is attributable to
the land to be leased by community land trusts to low- and moderate-income home buyers;

(4) to finance the acquisition, improvement, and infrastructure of manufactured home
parks under section 462A.2035, subdivision 1b;

(5) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
of senior housing;

(6) to finance the costs of acquisition deleted text begin anddeleted text end new text begin ,new text end rehabilitationnew text begin , and replacementnew text end of federally
assisted rental housing and for the refinancing of costs of the construction, acquisition, and
rehabilitation of federally assisted rental housing, including providing funds to refund, in
whole or in part, outstanding bonds previously issued by the agency or another government
unit to finance or refinance such costs; deleted text begin and
deleted text end

(7) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
of single-family housingdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (8) to finance the costs of construction, acquisition, and rehabilitation of permanent
housing that is affordable to households with incomes at or below 50 percent of the area
median income for the applicable county or metropolitan area as published by the Department
of Housing and Urban Development, as adjusted for household size.
new text end

(b) Among comparable proposals for permanent supportive housing, preference shall
be given to permanent supportive housing for veterans and other individuals or families
who:

(1) either have been without a permanent residence for at least 12 months or at least four
times in the last three years; or

(2) are at significant risk of lacking a permanent residence for 12 months or at least four
times in the last three years.

(c) Among comparable proposals for senior housing, the agency must give priority to
requests for projects that:

(1) demonstrate a commitment to maintaining the housing financed as affordable to
deleted text begin seniorsdeleted text end new text begin senior householdsnew text end ;

(2) leverage other sources of funding to finance the project, including the use of
low-income housing tax credits;

(3) provide access to services to residents and demonstrate the ability to increase physical
supports and support services as residents age and experience increasing levels of disability;new text begin
and
new text end

(4) deleted text begin provide a service plan containing the elements of clause (3) reviewed by the housing
authority, economic development authority, public housing authority, or community
development agency that has an area of operation for the jurisdiction in which the project
is located; and
deleted text end

deleted text begin (5)deleted text end include households with incomes that do not exceed 30 percent of the median
household income for the metropolitan area.

new text begin (d) new text end To the extent practicable, the agency shall balance the loans made between projects
in the metropolitan area and projects outside the metropolitan area. Of the loans made to
projects outside the metropolitan area, the agency shall, to the extent practicable, balance
the loans made between projects in counties or cities with a population of 20,000 or less,
as established by the most recent decennial census, and projects in counties or cities with
populations in excess of 20,000.

new text begin (e) Among comparable proposals for permanent housing, the agency must give preference
to projects that will provide housing that is affordable to households at or below 30 percent
of the area median income.
new text end

new text begin (f) If a loan recipient uses the loan for any of the purposes in paragraph (a) on a building
containing more than four units, the loan recipient must construct, convert, or otherwise
adapt the building to include:
new text end

new text begin (1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are
accessible units, as defined by section 1002 of the current State Building Code Accessibility
Provisions for Dwelling Units in Minnesota, and include at least one roll-in shower; and
new text end

new text begin (2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are
sensory-accessible units that include:
new text end

new text begin (A) soundproofing between shared walls for first and second floor units;
new text end

new text begin (B) no florescent lighting in units and common areas;
new text end

new text begin (C) low-fume paint;
new text end

new text begin (D) low-chemical carpet; and
new text end

new text begin (E) low-chemical carpet glue in units and common areas.
new text end

new text begin Nothing in this paragraph will relieve a project funded by the agency from meeting other
applicable accessibility requirements.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 19.

Minnesota Statutes 2022, section 462A.37, is amended by adding a subdivision
to read:


new text begin Subd. 2i. new text end

new text begin Additional authorization. new text end

new text begin In addition to the amounts authorized in subdivisions
2 to 2h, the agency may issue up to $250,000,000 in housing infrastructure bonds in one or
more series to which the payments under this section may be pledged.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 20.

Minnesota Statutes 2022, section 462A.37, is amended by adding a subdivision
to read:


new text begin Subd. 2j. new text end

new text begin Refunding bonds. new text end

new text begin (a) The agency may issue housing infrastructure bonds in
one or more series to refund bonds authorized in this section. The amount of refunding
housing infrastructure bonds that may be issued from time to time will not be subject to the
dollar limitation contained in any of the authorizations in this section nor will those bonds
be included in computing the amount of bonds that may be issued within those dollar
limitations.
new text end

new text begin (b) In the refunding of housing infrastructure bonds, each bond must be called for
redemption prior to its maturity in accordance with its terms no later than the earliest date
on which it may be redeemed. No refunding bonds may be issued unless as of the date of
the refunding bonds the present value of the dollar amount of the debt service on the
refunding bonds, computed to their stated maturity dates, is lower than the present value of
the dollar amount of debt service on all housing infrastructure bonds refunded computed to
their stated maturity dates. For purposes of this subdivision, "present value of the dollar
amount of debt service" means the dollar amount of debt service to be paid, discounted to
the nominal date of the refunding bonds at a rate equal to the yield on the refunding bonds.
new text end

new text begin (c) If as a result of the issuance of refunding bonds the amount of debt service for an
annual period is less than the amount transferred by the commissioner of management and
budget to pay debt service for that annual period, the agency must deduct the excess amount
from the actual amount of debt service on those bonds certified for the next subsequent
annual period.
new text end

Sec. 21.

Minnesota Statutes 2022, section 462A.37, subdivision 4, is amended to read:


Subd. 4.

Appropriation; payment to agency or trustee.

(a) The agency must certify
annually to the commissioner of management and budget the actual amount of annual debt
service on each series of bonds issued under subdivision 2.

(b) Each July 15, beginning in 2013 and through 2035, if any housing infrastructure
bonds issued under subdivision 2new text begin , or housing infrastructure bonds issued to refund those
bonds,
new text end remain outstanding, the commissioner of management and budget must transfer to
the deleted text begin affordabledeleted text end housing new text begin infrastructure new text end bond account established under section 462A.21,
subdivision 33
, the amount certified under paragraph (a), not to exceed $2,200,000 annually.
The amounts necessary to make the transfers are appropriated from the general fund to the
commissioner of management and budget.

(c) The agency may pledge to the payment of the housing infrastructure bonds the
payments to be made by the state under this section.

Sec. 22.

Minnesota Statutes 2022, section 462A.37, subdivision 5, is amended to read:


Subd. 5.

Additional appropriation.

(a) The agency must certify annually to the
commissioner of management and budget the actual amount of annual debt service on each
series of bonds issued under this section.

(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure
bonds issued under subdivision 2anew text begin , or housing infrastructure bonds issued to refund those
bonds,
new text end remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a), not to exceed $6,400,000 annually. The amounts
necessary to make the transfers are appropriated from the general fund to the commissioner
of management and budget.

(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure
bonds issued under subdivision 2bnew text begin , or housing infrastructure bonds issued to refund those
bonds,
new text end remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a), not to exceed $800,000 annually. The amounts
necessary to make the transfers are appropriated from the general fund to the commissioner
of management and budget.

(d) Each July 15, beginning in 2019 and through 2040, if any housing infrastructure
bonds issued under subdivision 2cnew text begin , or housing infrastructure bonds issued to refund those
bonds,
new text end remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a), not to exceed $2,800,000 annually. The amounts
necessary to make the transfers are appropriated from the general fund to the commissioner
of management and budget.

(e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure
bonds issued under subdivision 2dnew text begin , or housing infrastructure bonds issued to refund those
bonds,
new text end remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(f) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure
bonds issued under subdivision 2enew text begin , or housing infrastructure bonds issued to refund those
bonds,
new text end remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(g) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure
bonds issued under subdivision 2fnew text begin , or housing infrastructure bonds issued to refund those
bonds,
new text end remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(h) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure
bonds issued under subdivision 2gnew text begin , or housing infrastructure bonds issued to refund those
bonds,
new text end remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(i) Each July 15, beginning in 2023 and through 2044, if any housing infrastructure
bonds issued under subdivision 2hnew text begin , or housing infrastructure bonds issued to refund those
bonds,
new text end remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(j) new text begin Each July 15, beginning in 2024 and through 2045, if any housing infrastructure
bonds issued under subdivision 2i remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under section
462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
to make the transfers are appropriated from the general fund to the commissioner of
management and budget.
new text end

new text begin (k) new text end The agency may pledge to the payment of the housing infrastructure bonds the
payments to be made by the state under this section.

Sec. 23.

Minnesota Statutes 2022, section 462A.38, subdivision 1, is amended to read:


Subdivision 1.

Establishment.

A workforce and affordable homeownership development
program is established to award homeownership development grants to cities, new text begin counties,
new text end Tribal governments, nonprofit organizations, cooperatives created under chapter 308A or
308B, and community land trusts created for the purposes outlined in section 462A.31,
subdivision
1, for development of workforce and affordable homeownership projects. The
purpose of the program is to increase the supply of workforce and affordable, owner-occupied
multifamily or single-family housing throughout Minnesota.

Sec. 24.

Minnesota Statutes 2022, section 462A.39, subdivision 2, is amended to read:


Subd. 2.

Definitions.

(a) For purposes of this section, the following terms have the
meanings given.

(b) "Eligible project area" means a home rule charter or statutory city located outside
of deleted text begin thedeleted text end new text begin anew text end metropolitan deleted text begin areadeleted text end new text begin countynew text end as defined in section 473.121, subdivision deleted text begin 2deleted text end new text begin 4new text end , with a
population exceeding 500; a community that has a combined population of 1,500 residents
located within 15 miles of a home rule charter or statutory city located outside deleted text begin thedeleted text end new text begin anew text end
metropolitan deleted text begin areadeleted text end new text begin countynew text end as defined in section 473.121, subdivision deleted text begin 2deleted text end new text begin 4new text end ; new text begin federally recognized
Tribal reservations;
new text end or an area served by a joint county-city economic development authority.

(c) "Joint county-city economic development authority" means an economic development
authority formed under Laws 1988, chapter 516, section 1, as a joint partnership between
a city and county and excluding those established by the county only.

(d) "Market rate residential rental properties" means properties that are rented at market
value, including new modular homes, new manufactured homes, and new manufactured
homes on leased land or in a manufactured home park, and may include rental developments
that have a portion of income-restricted units.

(e) "Qualified expenditure" means expenditures for market rate residential rental
properties including acquisition of property; construction of improvements; and provisions
of loans or subsidies, grants, interest rate subsidies, public infrastructure, and related financing
costs.

Sec. 25.

Minnesota Statutes 2022, section 462A.39, subdivision 5, is amended to read:


Subd. 5.

Allocation.

The amount of a grant or deferred loans may not exceed deleted text begin 25deleted text end new text begin 50new text end
percent of the rental housing development project cost. The commissioner shall not award
a grant or deferred loans to deleted text begin a citydeleted text end new text begin an eligible project areanew text end without certification by the deleted text begin citydeleted text end new text begin
eligible project area
new text end that the amount of the grant or deferred loans shall be matched by a
local unit of government, business, deleted text begin ordeleted text end nonprofit organizationnew text begin , or federally recognized Tribe,new text end
with $1 for every $2 provided in grant or deferred loans funds.

Sec. 26.

new text begin [462A.41] HOUSING COST REDUCTION INCENTIVE PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Grant program established. new text end

new text begin The agency must establish and administer
the housing cost reduction incentive program for the purpose of reimbursing cities for fee
waivers or reductions provided to qualified multifamily housing developments and
single-family, owner-occupied housing developments through local fee waiver and
inclusionary housing programs.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have the
meanings given.
new text end

new text begin (b) "Applicant" means any statutory or home rule charter city or county.
new text end

new text begin (c) "Inclusionary housing program" means a program that requires at least 25 percent
of new construction to be affordable to households with incomes at or below 80 percent of
the area median income for multifamily housing developments or 115 percent of the area
median income for single-family, owner-occupied housing developments.
new text end

new text begin (d) "Local fee waiver program" means a program established by a statutory or home
rule charter city that waives or reduces fees for developers of qualified multifamily housing
developments and single-family, owner-occupied housing developments.
new text end

new text begin (e) "Multifamily housing development" has the meaning given in section 462C.02,
subdivision 5, except that only new construction qualifies.
new text end

new text begin (f) "Program" means the housing cost reduction incentive program established in this
section.
new text end

new text begin (g) "Single-family housing" has the meaning given in section 462C.02, subdivision 4,
except that only manufactured or modular homes and new construction qualify.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin (a) The agency must develop forms and procedures for soliciting
and reviewing applications for grants under this section. An application of a city must
include, at a minimum, information about the local fee waiver and inclusionary housing
programs under which the city issued fee waivers or reductions.
new text end

new text begin (b) The agency must evaluate complete applications for funding for reimbursement for
eligible fee waivers or reductions to determine whether the fee waiver or reduction is
necessary to increase the number of multifamily housing developments and single-family,
owner-occupied housing developments within the applicant's boundaries.
new text end

new text begin (c) The determination of whether to award a grant for reimbursement of fee waivers or
reductions is within the discretion of the agency, subject to this section. The agency's decision
and application of the criteria are not subject to judicial review, except for abuse of discretion.
new text end

new text begin Subd. 4. new text end

new text begin Grant amount. new text end

new text begin The commissioner may award grants to applicants in an amount
up to 50 percent of the amount of the development impact fee waived or reduced by a city
for a qualified rental housing development. A city may receive no more than $250,000 per
multifamily housing development or single-family housing project.
new text end

Sec. 27.

new text begin [462A.42] SUPPORTIVE HOUSING PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The agency shall establish a supportive housing program
to provide funding to support the operations of supportive housing for individuals and
families who are at risk of homelessness or have experienced homelessness.
new text end

new text begin Subd. 2. new text end

new text begin Definition. new text end

new text begin For the purposes of this section, "supportive housing" means housing
that is not time-limited and provides or coordinates with services necessary for residents to
maintain housing stability and maximize opportunities for education and employment.
new text end

new text begin Subd. 3. new text end

new text begin Eligible recipients. new text end

new text begin Funding may be made to a local unit of government, a
federally recognized American Indian Tribe or its Tribally Designated Housing Entity
located in Minnesota, a private developer, or a nonprofit organization.
new text end

new text begin Subd. 4. new text end

new text begin Eligible uses. new text end

new text begin (a) Funds shall be used to cover costs needed for supportive
housing to operate effectively. Costs may include but are not limited to building operating
expenses such as front desk, tenant service coordination, revenue shortfall, and security
costs. These funds may be capitalized as part of development costs. Funds may be provided
to support existing permanent supportive housing units or to cover costs associated with
new permanent supportive housing units.
new text end

new text begin (b) Funds may be used to create partnerships with the health care sector and other sectors
to demonstrate sustainable ways to provide services for supportive housing residents, improve
access to health care, and reduce the use of expensive emergency and institutional care.
This may be done in partnership with other state agencies, including the Department of
Health and the Department of Human Services.
new text end

new text begin Subd. 5. new text end

new text begin Application. new text end

new text begin The commissioner shall develop forms and procedures for soliciting
and reviewing applications for funding under this section. The commissioner shall consult
with interested stakeholders when developing the guidelines and procedures for the program.
new text end

Sec. 28.

new text begin [462A.43] COMMUNITY STABILIZATION PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The agency shall establish a community stabilization
program to provide grants or loans to preserve naturally occurring affordable housing through
acquisition, acquisition and rehabilitation, or rehabilitation.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section, "naturally occurring affordable
housing" means:
new text end

new text begin (1) multiunit rental housing that:
new text end

new text begin (i) is at least 20 years old; and
new text end

new text begin (ii) has rents in a majority of units that are affordable to households at or below 60
percent of the greater of state or area median income as determined by the United States
Department of Housing and Urban Development; or
new text end

new text begin (2) owner-occupied housing located in communities where market pressures or significant
deferred rehabilitation needs, as defined by the agency, are creating opportunities for
displacement or the loss of owner-occupied housing affordable to households at or below
115 percent of the greater of state or area median income as determined by the United States
Department of Housing and Urban Development.
new text end

new text begin Subd. 3. new text end

new text begin Eligible recipients. new text end

new text begin (a) Grants or loans may be made to a local unit of
government; federally recognized American Indian Tribe located in Minnesota or its Tribally
Designated Housing Entity; private developer; limited equity cooperative; cooperative
created under chapter 308A or 308B; community land trust created for the purposes outlined
in section 462A.31, subdivision 1; or nonprofit organization.
new text end

new text begin (b) The agency may make a grant to a statewide intermediary to facilitate the acquisition
and associated rehabilitation of existing multiunit rental housing and may use an intermediary
or intermediaries for the acquisition and associated rehabilitation of owner-occupied housing.
new text end

new text begin Subd. 4. new text end

new text begin Eligible uses. new text end

new text begin The program shall provide grants or loans for the purpose of
acquisition, rehabilitation, interest rate reduction, or gap financing of housing to support
the preservation of naturally occurring affordable housing. Priority in funding shall be given
to proposals that serve lower incomes and maintain longer periods of affordability.
new text end

new text begin Subd. 5. new text end

new text begin Owner-occupied housing income limits. new text end

new text begin Households served through grants
or loans related to owner-occupied housing must have, at initial occupancy, income that is
at or below 115 percent of the greater of state or area median income as determined by the
United States Department of Housing and Urban Development.
new text end

new text begin Subd. 6. new text end

new text begin Multifamily housing rent limits. new text end

new text begin Multifamily housing financed through grants
or loans under this section must remain affordable to low-income or moderate-income
households as defined by the agency.
new text end

new text begin Subd. 7. new text end

new text begin Application. new text end

new text begin (a) The agency shall develop forms and procedures for soliciting
and reviewing applications for loans or grants under this section. The agency shall consult
with interested stakeholders when developing the guidelines and procedures for the program.
new text end

new text begin (b) Notwithstanding any other applicable law, the agency may accept applications on a
noncompetitive, rolling basis in order to provide funds for eligible properties as they become
available.
new text end

new text begin Subd. 8. new text end

new text begin Voucher requirement for multifamily properties. new text end

new text begin Rental properties that
receive funds must accept rental subsidies, including but not limited to vouchers under
Section 8 of the United States Housing Act of 1937, as amended.
new text end

Sec. 29.

Laws 2021, First Special Session chapter 8, article 1, section 3, subdivision 11,
is amended to read:


Subd. 11.

Affordable Rental Investment Fund

4,218,000
4,218,000

(a) This appropriation is for the affordable
rental investment fund program under
Minnesota Statutes, section 462A.21,
subdivision 8b
, to finance the acquisition,
rehabilitation, new text begin replacement, new text end and debt
restructuring of federally assisted rental
property and for making equity take-out loans
under Minnesota Statutes, section 462A.05,
subdivision 39
.

(b) The owner of federally assisted rental
property must agree to participate in the
applicable federally assisted housing program
and to extend any existing low-income
affordability restrictions on the housing for
the maximum term permitted.

(c) The appropriation also may be used to
finance the acquisition, rehabilitation, and debt
restructuring of existing supportive housing
properties and naturally occurring affordable
housing as determined by the commissioner.
For purposes of this paragraph, "supportive
housing" means affordable rental housing with
links to services necessary for individuals,
youth, and families with children to maintain
housing stability.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2021.
new text end

Sec. 30. new text begin FIRST-GENERATION HOMEBUYERS DOWN PAYMENT ASSISTANCE
FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A first-generation homebuyers down payment assistance
fund is established as a pilot project under the administration of the Midwest Minnesota
Community Development Corporation, a community development financial institution
(CDFI) as defined under the Riegle Community Development and Regulatory Improvement
Act of 1994, to provide targeted assistance to eligible first-generation homebuyers.
new text end

new text begin Subd. 2. new text end

new text begin Eligible homebuyer. new text end

new text begin For purposes of this section, "eligible homebuyer" means
a borrower:
new text end

new text begin (1) whose income is at or below 100 percent of the area median income at the time of
purchase;
new text end

new text begin (2) who either never owned a home or who owned a home but lost it due to foreclosure;
new text end

new text begin (3) who is preapproved for a first mortgage loan; and
new text end

new text begin (4) whose parent or prior legal guardian either never owned a home or owned a home
but lost it due to foreclosure.
new text end

new text begin For joint borrowers, the combined income of all borrowers must be at or below 100 percent
of the area median income at the time of purchase. One borrower must be an eligible
homebuyer. An eligible homebuyer must complete an approved homebuyer education course
prior to signing a purchase agreement and, following the purchase of the home, must occupy
it as their primary residence.
new text end

new text begin Subd. 3. new text end

new text begin Use of funds. new text end

new text begin Assistance under this section is limited to ten percent of the
purchase price of a one or two unit home, not to exceed $32,000. Funds are reserved at the
issuance of preapproval. Reservation of funds is not contingent on having an executed
purchase agreement. The assistance must be provided in the form of a loan that is forgivable
at a rate of 20 percent per year on the day after the anniversary date of the note. The prorated
balance due is repayable if the property converts to nonowner occupancy, is sold, is subjected
to an ineligible refinance, is subjected to an unauthorized transfer of title, or is subjected to
a completed foreclosure action within the five-year loan term. Recapture can be waived in
the event of financial or personal hardship. Funds may be used for closing costs, down
payment, or principal reduction. The eligible homebuyer may select any first mortgage
lender or broker. The funds must be used in conjunction with a conforming first mortgage
loan that is fully amortizing and meets the standards of a qualified mortgage or meets the
minimum standards for exemption under Code of Federal Regulations, title 12, section
1026.43. Funds may be used in conjunction with other programs the eligible homebuyer
may qualify for and the loan placed in any priority position.
new text end

new text begin Subd. 4. new text end

new text begin Administration. new text end

new text begin The first-generation homebuyers down payment assistance
fund is available statewide and shall be administered by Midwest Minnesota Community
Development Corporation, the designated central CDFI. Midwest Minnesota Community
Development Corporation may originate and service funds and authorize other CDFIs,
Tribal entities, and nonprofit organizations administering down payment assistance to
reserve, originate, fund, and service funds for eligible homebuyers. Administrative costs
must not exceed $3,200 per loan. Any funds recaptured prior to June 30, 2026, are deposited
in the fund established in subdivision 1 and are to be redistributed to eligible homebuyers.
Any unused funds, or funds recaptured on or after June 30, 2026, shall be remitted to the
agency to be returned to the general fund.
new text end

new text begin Subd. 5. new text end

new text begin Report to legislature. new text end

new text begin By January 15 each year, the fund administrator, Midwest
Minnesota Community Development Corporation, must report to the chairs and ranking
minority members of the legislative committees having jurisdiction over housing finance
and policy the following information:
new text end

new text begin (1) the number and amount of loans closed;
new text end

new text begin (2) the median loan amount;
new text end

new text begin (3) the number and amount of loans issued by race or ethnic categories;
new text end

new text begin (4) the median home purchase price;
new text end

new text begin (5) the interest rates and types of mortgages;
new text end

new text begin (6) the total amount returned to the fund; and
new text end

new text begin (7) the number and amount of loans issued by county.
new text end

Sec. 31. new text begin GREATER MINNESOTA HOUSING INFRASTRUCTURE GRANT
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Grant program established. new text end

new text begin The commissioner of the Minnesota Housing
Finance Agency may make grants to cities to provide up to 50 percent of the capital costs
of public infrastructure necessary for an eligible workforce housing development project.
The commissioner may make a grant award only after determining that nonstate resources
are committed to complete the project. The nonstate contribution may be either cash or in
kind. In-kind contributions may include the value of the site, whether the site is prepared
before or after the law appropriating money for the grant is enacted.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have the
meanings given.
new text end

new text begin (b) "City" means a statutory or home rule charter city located outside the metropolitan
area, as defined in Minnesota Statutes, section 473.121, subdivision 2.
new text end

new text begin (c) "Housing infrastructure" means publicly owned physical infrastructure necessary to
support housing development projects, including but not limited to sewers, water supply
systems, utility extensions, streets, wastewater treatment systems, stormwater management
systems, and facilities for pretreatment of wastewater to remove phosphorus.
new text end

new text begin Subd. 3. new text end

new text begin Eligible projects. new text end

new text begin Housing projects eligible for a grant under this section may
be a single-family or multifamily housing development, and either owner-occupied or rental.
new text end

new text begin Subd. 4. new text end

new text begin Application. new text end

new text begin (a) The commissioner must develop forms and procedures for
soliciting and reviewing applications for grants under this section. At a minimum, a city
must include in its application a resolution of the city council certifying that the required
nonstate match is available. The commissioner must evaluate complete applications for
funding for eligible projects to determine that:
new text end

new text begin (1) the project is necessary to increase sites available for housing development that will
provide adequate housing stock for the current or future workforce; and
new text end

new text begin (2) the increase in workforce housing will result in substantial public and private capital
investment in the city in which the project would be located.
new text end

new text begin (b) The determination of whether to make a grant for a site is within the discretion of
the commissioner, subject to this section. The commissioner's decisions and application of
the criteria are not subject to judicial review, except for abuse of discretion.
new text end

new text begin Subd. 5. new text end

new text begin Maximum grant amount. new text end

new text begin A city may receive no more than $30,000 per lot
for single-family, duplex, triplex, or fourplex housing developed and no more than $60,000
per lot for multifamily housing with more than four units per building. A city may receive
no more than $500,000 in two years for one or more housing developments.
new text end

new text begin Subd. 6. new text end

new text begin Cancellation of grant; return of grant money. new text end

new text begin If, after five years, the
commissioner determines that a project has not proceeded in a timely manner and is unlikely
to be completed, the commissioner must cancel the grant and require the grantee to return
all grant money awarded for that project.
new text end

Sec. 32. new text begin HIGH-RISE SPRINKLER SYSTEM GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this section.
new text end

new text begin (b) "Eligible building" means an existing residential building in which:
new text end

new text begin (1) at least one story used for human occupancy is 75 feet or more above the lowest
level of fire department vehicle access; and
new text end

new text begin (2) at least two-thirds of its units are rented to an individual or family with an annual
income of up to 50 percent of the area median income as determined by the United States
Department of Housing and Urban Development, adjusted for family size, that is paying
no more than 30 percent of annual income on rent.
new text end

new text begin (c) "Sprinkler system" means the same as the term "fire protection system" as defined
in Minnesota Statutes, section 299M.01.
new text end

new text begin Subd. 2. new text end

new text begin Grant program. new text end

new text begin The commissioner of the Housing Finance Agency must make
grants to owners of eligible buildings for installation of sprinkler systems. Priority shall be
given to nonprofit applicants. The maximum grant per eligible building shall be $2,000,000.
Each grant to a nonprofit organization shall require a 25 percent match. Each grant to a
for-profit organization shall require a 50 percent match.
new text end

Sec. 33. new text begin REQUIRING CITIES TO REPORT BUILDINGS THAT DO NOT HAVE
SPRINKLER SYSTEMS.
new text end

new text begin (a) A city of the first or second class shall provide to the state fire marshal a list by June
20, 2024, and an updated list by June 30, 2027, and June 30, 2032, of each residential
building in the city that:
new text end

new text begin (1) has at least one story used for human occupancy that is 75 feet or more above the
lowest level of fire department vehicle access;
new text end

new text begin (2) was not subject to a requirement to include a sprinkler system at the time the building
was constructed; and
new text end

new text begin (3) has not been retrofitted with a sprinkler system.
new text end

new text begin (b) The state fire marshal shall submit the lists within 60 days of the due dates under
paragraph (a) to the chairs and ranking minority members of the legislative committees with
jurisdiction over the State Building Code, State Fire Code, and Minnesota Housing Finance
Agency.
new text end

Sec. 34. new text begin EXPEDITING RENTAL ASSISTANCE ADVISORY GROUP.
new text end

new text begin The commissioner shall convene stakeholders to evaluate methods of processing
applications for rental assistance and emergency rental assistance, methods of distributing
rental assistance funds, and ways to expedite these processes. The advisory group shall have
a range of stakeholder representation as determined by the commissioner. By January 31,
2024, the commissioner must report to the legislative committees with jurisdiction over
housing finance and policy with the findings of the advisory group, including
recommendations to improve rental assistance procedures.
new text end

Sec. 35. new text begin HOMEOWNERSHIP INVESTMENT GRANTS PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Grant program established. new text end

new text begin The commissioner of the Minnesota Housing
Finance Agency must establish and administer a program to support projects that encourage
affordable homeownership in accordance with this section.
new text end

new text begin Subd. 2. new text end

new text begin Eligible projects. new text end

new text begin The commissioner may award a grant under this section for
a project that invests in the following:
new text end

new text begin (1) housing development to increase the supply of affordable owner-occupied homes;
new text end

new text begin (2) financing programs for affordable owner-occupied new home construction;
new text end

new text begin (3) acquisition, rehabilitation, and resale of affordable owner-occupied homes or homes
to be converted to owner-occupied homes;
new text end

new text begin (4) financing programs for affordable owner-occupied manufactured housing; or
new text end

new text begin (5) services to increase access to stable, affordable, owner-occupied housing in
low-income communities, American Indian communities, and communities of color.
new text end

new text begin The commissioner must ensure grant awards are distributed throughout the state based on
population.
new text end

new text begin Subd. 3. new text end

new text begin Eligible organization. new text end

new text begin To be eligible for a grant under this section, a nonprofit
organization must:
new text end

new text begin (1) qualify for tax exempt status under United States Code, title 26, section 501(c)(3);
new text end

new text begin (2) have primary operations located in Minnesota;
new text end

new text begin (3) be certified as a community development financial institution by the United States
Department of the Treasury; and
new text end

new text begin (4) provide affordable housing lending or financing programs.
new text end

new text begin Subd. 4. new text end

new text begin Application. new text end

new text begin An organization applying for a grant must include as part of their
application a plan to create new affordable home ownership and home preservation
opportunities for targeted areas.
new text end

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin By January 15, 2024, the commissioner must submit a report to the
chairs and ranking minority members of the legislative committees with jurisdiction over
housing finance and policy detailing the use of funds under this section.
new text end

Sec. 36. new text begin MANUFACTURED HOME LENDING GRANTS PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin The commissioner of the Minnesota Housing
Finance Agency must award a grant to an organization for manufactured home lending
services under subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Eligible services. new text end

new text begin The commissioner may award a grant under this section to
an organization providing lending funds for the following services:
new text end

new text begin (1) new manufactured home financing programs;
new text end

new text begin (2) manufactured home down payment assistance; or
new text end

new text begin (3) manufactured home repair, renovation, removal, and site preparation financing
programs.
new text end

new text begin Subd. 3. new text end

new text begin Eligible organization. new text end

new text begin To be eligible for a grant under this section, a nonprofit
organization must:
new text end

new text begin (1) qualify for tax exempt status under United States Code, title 26, section 501(c)(3);
new text end

new text begin (2) have primary operations located in Minnesota;
new text end

new text begin (3) be a qualified nonprofit lender or certified as a community development financial
institution by the United States Department of the Treasury;
new text end

new text begin (4) provide affordable housing lending or financing programs; and
new text end

new text begin (5) serve low-income populations in manufactured home communities owned by residents,
cooperatives, nonprofits, or municipalities.
new text end

new text begin Subd. 4. new text end

new text begin Application. new text end

new text begin Within 90 days of final enactment, the commissioner shall develop
the forms, applications, and reporting requirements for use by eligible organizations. In
developing these materials, the commissioner shall consult with manufactured housing
cooperatives, resident-owned manufactured home communities, and nonprofit organizations
working with manufactured housing cooperatives and resident-owned communities.
new text end

new text begin Subd. 5. new text end

new text begin Loan payments and interest. new text end

new text begin Interest earned and repayments of principal from
loans issued under this section must be used for the purposes of this section.
new text end

Sec. 37. new text begin FINANCIAL REVIEW OF GRANT AND BUSINESS SUBSIDY
RECIPIENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) As used in this section, the following terms have the
meanings given.
new text end

new text begin (b) "Grant" means a grant or business subsidy funded by an appropriation in this act.
new text end

new text begin (c) "Grantee" means a business entity as defined in Minnesota Statutes, section 5.001.
new text end

new text begin Subd. 2. new text end

new text begin Financial information required; determination of ability to perform. new text end

new text begin Before
an agency awards a competitive, legislatively named, single-source, or sole-source grant,
the agency must assess the risk that a grantee cannot or would not perform the required
duties. In making this assessment, the agency must review the following information:
new text end

new text begin (1) the grantee's history of performing duties similar to those required by the grant,
whether the size of the grant requires the grantee to perform services at a significantly
increased scale, and whether the size of the grant will require significant changes to the
operation of the grantee's organization;
new text end

new text begin (2) for a grantee that is a nonprofit organization, the grantee's Form 990 or Form 990-EZ
filed with the Internal Revenue Service in each of the prior three years. If the grantee has
not been in existence long enough or is not required to file Form 990 or Form 990-EZ, the
grantee must demonstrate to the grantor's satisfaction that the grantee is exempt and must
instead submit the grantee's most recent board-reviewed financial statements and
documentation of internal controls;
new text end

new text begin (3) for a for-profit business, three years of federal and state tax returns, current financial
statements, certification that the business is not under bankruptcy proceedings, and disclosure
of any liens on its assets. If a business has not been in business long enough to have three
years of tax returns, the grantee must demonstrate to the grantor's satisfaction that the grantee
has appropriate internal financial controls;
new text end

new text begin (4) evidence of registration and good standing with the secretary of state under Minnesota
Statutes, chapter 317A, or other applicable law;
new text end

new text begin (5) if the grantee's total annual revenue exceeds $750,000, the grantee's most recent
financial audit performed by an independent third party in accordance with generally accepted
accounting principles; and
new text end

new text begin (6) certification, provided by the grantee, that none of its principals have been convicted
of a financial crime.
new text end

new text begin Subd. 3. new text end

new text begin Additional measures for some grantees. new text end

new text begin The agency may require additional
information and must provide enhanced oversight for grants that have not previously received
state or federal grants for similar amounts or similar duties and so have not yet demonstrated
the ability to perform the duties required under the grant on the scale required.
new text end

new text begin Subd. 4. new text end

new text begin Assistance from administration. new text end

new text begin An agency without adequate resources or
experience to perform obligations under this section may contract with the commissioner
of administration to perform the agency's duties under this section.
new text end

new text begin Subd. 5. new text end

new text begin Agency authority to not award grant. new text end

new text begin If an agency determines that there is
an appreciable risk that a grantee receiving a competitive, single-source, or sole-source
grant cannot or would not perform the required duties under the grant agreement, the agency
must notify the grantee and the commissioner of administration and give the grantee an
opportunity to respond to the agency's concerns. If the grantee does not satisfy the agency's
concerns within 45 days, the agency must not award the grant.
new text end

new text begin Subd. 6. new text end

new text begin Legislatively named grantees. new text end

new text begin If an agency determines that there is an
appreciable risk that a grantee receiving a legislatively named grant cannot or would not
perform the required duties under the grant agreement, the agency must notify the grantee,
the commissioner of administration, and the chair and ranking minority members of the
Ways and Means Committee in the house of representatives, the chair and ranking minority
members of the Finance Committee in the senate, and the chairs and ranking minority
members of the committees in the house of representatives and the senate with primary
jurisdiction over the bill in which the money for the grant was appropriated. The agency
must give the grantee an opportunity to respond to the agency's concerns. If the grantee
does not satisfy the agency's concerns within 45 days, the agency must delay award of the
grant until adjournment of the next regular or special legislative session.
new text end

new text begin Subd. 7. new text end

new text begin Subgrants. new text end

new text begin If a grantee will disburse the money received from the grant to
other organizations to perform duties required under the grant agreement, the agency must
be a party to agreements between the grantee and a subgrantee. Before entering agreements
for subgrants, the agency must perform the financial review required under this section with
respect to the subgrantees.
new text end

new text begin Subd. 8. new text end

new text begin Effect. new text end

new text begin The requirements of this section are in addition to other requirements
imposed by law; the commissioner of administration under Minnesota Statutes, sections
16B.97 and 16B.98; or agency grant policy.
new text end

Sec. 38. new text begin EMPLOYMENT REPORT.
new text end

new text begin By January 15, 2024, the agency must report to the chairs and ranking members of the
legislative committees having jurisdiction over housing finance and policy on the number
of new full-time equivalent employees required to administer the appropriations and programs
authorized under this act, as well as the total costs associated with those new employees.
new text end