HF 3329

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/22/2024 04:17pm

A bill for an act
relating to state government; proposing an amendment to the Minnesota
Constitution, article XI; increasing the sales tax rate by three-eighths of one percent
and dedicating the receipts for housing purposes; creating a homeownership
opportunity fund, a rental opportunity fund, and a household and community
stability fund; creating fund councils; providing appointments; requiring reports;
proposing coding for new law in Minnesota Statutes, chapters 256K; 462A.

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

ARTICLE 1

CONSTITUTIONAL AMENDMENT TO FUND HOUSING INITIATIVES

Section 1. new text begin CONSTITUTIONAL AMENDMENT PROPOSED.
new text end

new text begin An amendment to the Minnesota Constitution is proposed to the people. If the amendment
is adopted, a section shall be added to article XI to read:
new text end

new text begin Sec. 16. new text end

new text begin Beginning July 1, 2025, until June 30, 2050, the sales and use tax rate shall be
increased by three-eighths of one percent on sales and uses taxable under the general sales
and use tax law. Receipts from the increase, plus penalties and interest and reduced by any
refunds, are dedicated, for the benefit of Minnesotans, to the following funds: 25 percent
to the homeownership opportunity fund, which may be spent to assist in the creation,
purchase, and rehabilitation of homes for owner occupancy; 25 percent to the community
and household stability fund, which may be used to assist in providing emergency financial
assistance, legal services, educational services, and outreach services to persons who are
homeless or at risk of becoming homeless; and 50 percent to the rental opportunity fund,
which may be used to assist in funding ongoing rental assistance and supportive services
for renters and in the acquisition, development, rehabilitation, or adaptive reuse of rental
housing. A homeownership opportunity fund, a community and household stability fund,
and a rental opportunity fund are created in the state treasury. The money dedicated under
this section shall be appropriated by law. The dedicated money under this section must
supplement traditional sources of funding for these purposes and may not be used as a
substitute. The dedicated money under this section may be used to provide matching grants.
new text end

Sec. 2. new text begin SUBMISSION TO VOTERS.
new text end

new text begin (a) The proposed amendment must be submitted to the people at the 2024 general election.
The question submitted must be:
new text end

new text begin "Shall the Minnesota Constitution be amended to remove barriers to homeownership,
to make our rental housing safe and affordable, and to protect our vulnerable households
and communities from displacement and homelessness by increasing the sales and use tax
rate beginning July 1, 2025, by three-eighths of one percent on taxable sales until the year
2050?
new text end

	new text begin Yes . new text end
	new text begin No . new text end	new text begin " new text end

new text begin (b) The title required under Minnesota Statutes, section 204D.15, subdivision 1, for the
question submitted to the people under paragraph (a) shall be: "Creation of Homeownership
Opportunity Fund, Community and Household Stability Fund, and Rental Opportunity
Fund."
new text end

ARTICLE 2

STATUTORY CHANGES

Section 1.

new text begin [256K.50] COMMUNITY AND HOUSEHOLD STABILITY FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Fund. new text end

new text begin The community and household stability fund is established in the
Minnesota Constitution, article XI, section 16. All money earned by the fund must be credited
to the fund.
new text end

new text begin Subd. 2. new text end

new text begin Expenditures. new text end

new text begin Subject to appropriation, receipts in the fund may be spent for:
new text end

new text begin (1) emergency assistance for households or individuals that are homeless or at risk of
homelessness or displacement;
new text end

new text begin (2) legal services for households or individuals that are homeless or at risk of
homelessness or displacement;
new text end

new text begin (3) outreach services for households or individuals that are homeless or at risk of
homelessness or displacement;
new text end

new text begin (4) funding the operation of emergency shelters; and
new text end

new text begin (5) financing the acquisition, rehabilitation, adaptive reuse, or new construction of
property to serve as emergency shelter, transitional housing, or permanent supportive
housing.
new text end

new text begin Subd. 3. new text end

new text begin Audit. new text end

new text begin The legislative auditor shall audit fund expenditures to ensure that the
money is spent for the purposes for which the money was appropriated.
new text end

new text begin Subd. 4. new text end

new text begin Prevailing wages. new text end

new text begin Contracts for projects funded by this fund must meet the
requirements of contracts for state projects, as established in section 177.43.
new text end

Sec. 2.

new text begin [256K.51] COMMUNITY AND HOUSEHOLD STABILITY COUNCIL.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A Community And Household Stability Council is created
to advise on the administration and implementation of the community and household stability
fund under section 256K.50. The Housing Finance Agency shall provide administrative
support for the council. The members of the council shall elect a chair from the voting
members of the council.
new text end

new text begin Subd. 2. new text end

new text begin Purpose. new text end

new text begin The fund is established to help Minnesotans improve the condition
of homes and communities and prevent homelessness and displacement from homes.
new text end

new text begin Subd. 3. new text end

new text begin Membership; appointment. new text end

new text begin (a) Three members of the house of representatives,
including two members from the majority party, appointed by the speaker of the house, and
one member from the minority party, appointed by the minority leader, shall serve at the
pleasure of the appointing authority as nonvoting members of the council. Three members
of the senate, including two members from the majority party and one member from the
minority party, appointed according to the rules of the senate, shall serve at the pleasure of
the appointing authority as nonvoting members of the council.
new text end

new text begin (b) Twenty-four voting members shall be appointed and must include:
new text end

new text begin (1) one representative of a labor union;
new text end

new text begin (2) the commissioner of the Housing Finance Agency;
new text end

new text begin (3) four representatives of organizations that work directly with under-resourced or
underrepresented communities;
new text end

new text begin (4) four members who receive or previously received support services, emergency rental
assistance, or homeless prevention services;
new text end

new text begin (5) two members representing Tribal government;
new text end

new text begin (6) one member elected to or appointed by the governing body of a local government;
new text end

new text begin (7) one member that represents either a public housing authority or a housing and
redevelopment authority; and
new text end

new text begin (8) one member representing the Council on Disability.
new text end

new text begin (c) Appointments shall be made as follows: the governor, the senate majority leader,
and the speaker of the house shall each in turn appoint members required under paragraph
(b) until 12 appointments have been made. The governor shall appoint an additional eight
members, ensuring that any outstanding requirements under paragraph (b) are satisfied. The
house minority leader and the senate minority leader shall then each appoint two members.
Members appointed under this paragraph must not be registered lobbyists or legislators.
new text end

new text begin (d) Appointing authorities shall ensure that appointees represent a diversity of
backgrounds, including racial, ethnic, socioeconomic, and geographic backgrounds.
new text end

new text begin Subd. 4. new text end

new text begin Conflict of interest. new text end

new text begin A council member may not participate in or vote on a
decision of the council relating to an organization in which the member has either a direct
or indirect personal financial interest. While serving on the council, a member shall avoid
any potential conflict of interest.
new text end

new text begin Subd. 5. new text end

new text begin Terms; compensation; removal. new text end

new text begin The terms of members representing the state
agencies are four years and are coterminous with the governor. The terms of other
nonlegislative members of the council shall be as provided in section 15.059, subdivision
2. Members may serve until their successors are appointed and qualify. Compensation and
removal of nonlegislative council members is as provided in section 15.059, subdivisions
3 and 4. Compensation of legislative members is as determined by the appointing authority.
The Department of Human Services may reimburse legislative members for expenses. A
vacancy on the council may be filled by the appointing authority provided in subdivision 3
for the remainder of the unexpired term.
new text end

new text begin Subd. 6. new text end

new text begin Strategic plan. new text end

new text begin The council shall adopt a strategic plan for recommending
policy changes and making expenditures from the community and household stability fund
that further the purpose in subdivision 2, including identifying the priority areas for funding
for the next six years. The council shall issue a revised plan by December 1 each
even-numbered year. The strategic plan must have clearly stated short- and long-term goals
and strategies for fund expenditures, must provide measurable outcomes for expenditures,
and must determine areas of emphasis for funding. The council's strategic plan must detail
how the council will engage impacted individuals and communities and ensure council
recommendations support the fund's purpose and the intention to reduce disparities, support
community-based solutions, improve the condition of homes, increase accessibility, and
improve energy and water efficiency.
new text end

new text begin Subd. 7. new text end

new text begin Recommended appropriations. new text end

new text begin The Community and Household Stability
Council shall recommend to the governor and the legislature the manner in which money
from the community and household stability fund should be appropriated for the purposes
stated in section 256K.50 and the Minnesota Constitution, article XI, section 16.
new text end

new text begin Subd. 8. new text end

new text begin Reports to legislature. new text end

new text begin (a) By January 15 of each odd-numbered year, the
council must submit a report to the legislature on the activities for which money has been
or will be spent for the current biennium and the activities for which money is recommended
to be spent in the next biennium.
new text end

new text begin (b) By January 15 of each even-numbered year, the council may submit to the legislature
supplemental recommendations on the manner in which money from the community and
household stability fund should be appropriated in the next fiscal year.
new text end

new text begin Subd. 9. new text end

new text begin Compensation. new text end

new text begin Members may be compensated as provided in section 15.059.
new text end

Sec. 3.

new text begin [462A.51] HOMEOWNERSHIP OPPORTUNITY FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Fund. new text end

new text begin The homeownership opportunity fund is established in the
Minnesota Constitution, article XI, section 16. All money earned by the fund must be credited
to the fund.
new text end

new text begin Subd. 2. new text end

new text begin Expenditures. new text end

new text begin Subject to appropriation, receipts in the fund may be spent for:
new text end

new text begin (1) financing the acquisition, rehabilitation, adaptive reuse, or new construction of
property to serve as owner-occupied housing, including single-family housing, multifamily
housing containing up to four units, housing on land leased by a community land trust,
condominiums, and cooperatively owned housing, including cooperatively owned
manufactured home parks;
new text end

new text begin (2) financing the conversion of rental property into owner-occupied property, including
cooperatively owned housing and cooperatively owned manufactured home parks;
new text end

new text begin (2) down payment assistance;
new text end

new text begin (3) accessibility grants and loans for owner-occupied housing;
new text end

new text begin (4) financial assistance to borrowers who are delinquent on mortgage or contract for
deed payments; and
new text end

new text begin (5) homeownership education, counseling, and training under section 462A.209.
new text end

new text begin Subd. 3. new text end

new text begin Audit. new text end

new text begin The legislative auditor shall audit fund expenditures to ensure that the
money is spent for the purposes for which the money was appropriated.
new text end

new text begin Subd. 4. new text end

new text begin Prevailing wages. new text end

new text begin Contracts for projects funded by this fund must meet the
requirements of contracts for state projects, as established in section 177.43.
new text end

Sec. 4.

new text begin [462A.52] HOMEOWNERSHIP OPPORTUNITY COUNCIL.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A Homeownership Opportunity Council is created to
advise on the administration and implementation of the homeownership opportunity fund
under section 462A.51. The Housing Finance Agency shall provide administrative support
for the council. The members of the council shall elect a chair from the voting members of
the council.
new text end

new text begin Subd. 2. new text end

new text begin Purpose. new text end

new text begin The fund is established to support Minnesotans and the communities
in which they live, to eliminate racial disparities in homeownership, to ensure Minnesotans
can accumulate wealth and assets, and to increase quality of life by helping more first-time
homebuyers afford and access homeownership.
new text end

new text begin Subd. 3. new text end

new text begin Membership; appointment. new text end

new text begin (a) Three members of the house of representatives,
including two members from the majority party, appointed by the speaker of the house, and
one member from the minority party, appointed by the minority leader, shall serve at the
pleasure of the appointing authority as nonvoting members of the council. Three members
of the senate, including two members from the majority party and one member from the
minority party, appointed according to the rules of the senate, shall serve at the pleasure of
the appointing authority as nonvoting members of the council.
new text end

new text begin (b) Twenty-four voting members shall be appointed and must include:
new text end

new text begin (1) the commissioner of the Housing Finance Agency;
new text end

new text begin (2) one member that represents either a public housing authority or a housing and
redevelopment authority;
new text end

new text begin (3) one representative of a labor union;
new text end

new text begin (4) two members who purchased a Habitat for Humanity home;
new text end

new text begin (5) two members who purchased a community land trust home;
new text end

new text begin (6) two members who have been or are manufactured home park residents;
new text end

new text begin (7) two members who live in a cooperatively owned property;
new text end

new text begin (8) two representatives of organizations focused on producing new affordable homes
for ownership;
new text end

new text begin (9) one representative of an organization that provides down payment assistance or
homebuyer preparation services to low-income households;
new text end

new text begin (10) two representatives of organizations that work directly with households on the path
to homeownership;
new text end

new text begin (11) one member elected to or appointed by the governing body of a local government;
new text end

new text begin (12) two representatives of Tribal government;
new text end

new text begin (13) one person with a disability or one disability advocate; and
new text end

new text begin (14) one person with practical experience or expertise with both housing and either
energy or climate.
new text end

new text begin (c) Appointments shall be made as follows: the governor, the senate majority leader,
and the speaker of the house shall each in turn appoint members required under paragraph
(b) until 12 appointments have been made. The governor shall appoint an additional eight
members, ensuring that any outstanding requirements under paragraph (b) are satisfied. The
house minority leader and the senate minority leader shall then each appoint two members.
Members appointed under this paragraph must not be registered lobbyists or legislators.
new text end

new text begin (d) Appointing authorities shall ensure that appointees represent a diversity of
backgrounds, including racial, ethnic, socioeconomic, and geographic backgrounds.
new text end

new text begin Subd. 4. new text end

new text begin Conflict of interest. new text end

new text begin A council member may not participate in or vote on a
decision of the council relating to an organization in which the member has either a direct
or indirect personal financial interest. While serving on the council, a member shall avoid
any potential conflict of interest.
new text end

new text begin Subd. 5. new text end

new text begin Terms; compensation; removal. new text end

new text begin The terms of members representing the state
agencies are four years and are coterminous with the governor. The terms of other
nonlegislative members of the council shall be as provided in section 15.059, subdivision
2. Members may serve until their successors are appointed and qualify. Compensation and
removal of nonlegislative council members is as provided in section 15.059, subdivisions
3 and 4. Compensation of legislative members is as determined by the appointing authority.
The agency may reimburse legislative members for expenses. A vacancy on the council
may be filled by the appointing authority provided in subdivision 3 for the remainder of the
unexpired term.
new text end

new text begin Subd. 6. new text end

new text begin Strategic plan. new text end

new text begin The council shall adopt a strategic plan for recommending
policy changes and making expenditures from the homeownership opportunity fund that
further the purpose in subdivision 2, including identifying the priority areas for funding for
the next six years. The council shall issue a revised plan by December 1 of each
even-numbered year. The strategic plan must have clearly stated short- and long-term goals
and strategies for fund expenditures, must provide measurable outcomes for expenditures,
and must determine areas of emphasis for funding. The council's strategic plan must detail
how the council will engage impacted individuals and communities and ensure council
recommendations support the fund's purpose and the intention to reduce disparities, support
community-based solutions, improve the condition of homes, increase accessibility, and
improve energy and water efficiency.
new text end

new text begin Subd. 7. new text end

new text begin Recommended appropriations. new text end

new text begin The Homeownership Opportunity Council
shall recommend to the governor and the legislature the manner in which money from the
homeownership opportunity fund should be appropriated for the purposes stated in section
462A.51 and the Minnesota Constitution, article XI, section 16.
new text end

new text begin Subd. 8. new text end

new text begin Reports to legislature. new text end

new text begin (a) By January 15 of each odd-numbered year, the
council must submit a report to the legislature on the activities for which money has been
or will be spent for the current biennium and the activities for which money is recommended
to be spent in the next biennium.
new text end

new text begin (b) By January 15 of each even-numbered year, the council may submit to the legislature
supplemental recommendations on the manner in which money from the homeownership
opportunity fund should be appropriated in the next fiscal year.
new text end

new text begin Subd. 9. new text end

new text begin Compensation. new text end

new text begin Members may be compensated as provided in section 15.059.
new text end

Sec. 5.

new text begin [462A.53] RENTAL OPPORTUNITY FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Fund. new text end

new text begin The rental opportunity fund is established in the Minnesota
Constitution, article XI, section 16. All money earned by the fund must be credited to the
fund.
new text end

new text begin Subd. 2. new text end

new text begin Expenditures. new text end

new text begin Subject to appropriation, receipts in the fund must be spent for:
new text end

new text begin (1) financing the acquisition, rehabilitation, adaptive reuse, or new construction of
property to serve as rental housing;
new text end

new text begin (2) rental assistance; and
new text end

new text begin (3) supportive services to renters and owners of rental property.
new text end

new text begin Subd. 3. new text end

new text begin Audit. new text end

new text begin The legislative auditor shall audit fund expenditures to ensure that the
money is spent for the purposes for which the money was appropriated.
new text end

new text begin Subd. 4. new text end

new text begin Prevailing wages. new text end

new text begin Contracts for projects funded by this fund must meet the
requirements of contracts for state projects, as established in section 177.43.
new text end

Sec. 6.

new text begin [462A.54] RENTAL OPPORTUNITY COUNCIL.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A Rental Opportunity Council is created to advise on
the administration and implementation of the rental opportunity fund under section 462A.53.
The Housing Finance Agency shall provide administrative support for the council. The
members of the council shall elect a chair from the voting members of the council.
new text end

new text begin Subd. 2. new text end

new text begin Purpose. new text end

new text begin The fund is established to create more homes that Minnesotans can
afford by increasing the supply of affordable rental housing, especially for very low- and
extremely low-income households; reduce the number of low-income households
experiencing housing cost burden by investing in rental assistance; and improve quality of
life by ensuring existing homes are safe, healthy, and resilient.
new text end

new text begin Subd. 3. new text end

new text begin Membership; appointment. new text end

new text begin (a) Three members of the house of representatives,
including two members from the majority party, appointed by the speaker of the house, and
one member from the minority party, appointed by the minority leader, shall serve at the
pleasure of the appointing authority as nonvoting members of the council. Three members
of the senate, including two members from the majority party and one member from the
minority party, appointed according to the rules of the senate, shall serve at the pleasure of
the appointing authority as nonvoting members of the council.
new text end

new text begin (b) Twenty-four voting members shall be appointed and must include:
new text end

new text begin (1) the commissioner of the Housing Finance Agency;
new text end

new text begin (2) one representative of a labor union;
new text end

new text begin (3) one member that represents either a public housing authority or a housing or
redevelopment authority;
new text end

new text begin (3) one member living in rental housing who (i) has a disability, and (ii) transitioned out
of congregate care;
new text end

new text begin (4) one member who is experiencing or has experienced homelessness;
new text end

new text begin (5) two representatives of Tribal government;
new text end

new text begin (6) one representative of a nonprofit housing provider;
new text end

new text begin (7) one representative of a for-profit housing provider;
new text end

new text begin (8) one representative of a nonprofit developer of rental housing; and
new text end

new text begin (9) one representative of a for-profit developer of rental housing.
new text end

new text begin (c) Appointments shall be made as follows: the governor, the senate majority leader,
and the speaker of the house shall each in turn appoint members required under paragraph
(b) until 12 appointments have been made. The governor shall appoint an additional eight
members, ensuring that any outstanding requirements under paragraph (b) are satisfied. The
house minority leader and the senate minority leader shall then each appoint two members.
Members appointed under this paragraph must not be registered lobbyists or legislators.
new text end

new text begin (d) Appointing authorities shall ensure that appointees represent a diversity of
backgrounds, including racial, ethnic, socioeconomic, and geographic backgrounds.
new text end

new text begin Subd. 4. new text end

new text begin Conflict of interest. new text end

new text begin A council member may not participate in or vote on a
decision of the council relating to an organization in which the member has either a direct
or indirect personal financial interest. While serving on the council, a member shall avoid
any potential conflict of interest.
new text end

new text begin Subd. 5. new text end

new text begin Terms; compensation; removal. new text end

new text begin The terms of members representing the state
agencies are four years and are coterminous with the governor. The terms of other
nonlegislative members of the council shall be as provided in section 15.059, subdivision
2. Members may serve until their successors are appointed and qualify. Compensation and
removal of nonlegislative council members is as provided in section 15.059, subdivisions
3 and 4. Compensation of legislative members is as determined by the appointing authority.
The agency may reimburse legislative members for expenses. A vacancy on the council
may be filled by the appointing authority provided in subdivision 3 for the remainder of the
unexpired term.
new text end

new text begin Subd. 6. new text end

new text begin Strategic plan. new text end

new text begin The council shall adopt a strategic plan for recommending
policy changes and making expenditures from the rental opportunity fund that further the
purpose in subdivision 2, including identifying the priority areas for funding for the next
six years. The council shall issue a revised plan by December 1 each even-numbered year.
The strategic plan must have clearly stated short- and long-term goals and strategies for
fund expenditures, must provide measurable outcomes for expenditures, and must determine
areas of emphasis for funding. The council's strategic plan must detail how the council will
engage impacted individuals and communities and ensure council recommendations support
the fund's purpose and the intention to reduce disparities, support community-based solutions,
improve the condition of homes, increase accessibility, and improve energy and water
efficiency.
new text end

new text begin Subd. 7. new text end

new text begin Recommended appropriations. new text end

new text begin The Rental Opportunity Council shall
recommend to the governor and the legislature the manner in which money from the rental
opportunity fund should be appropriated for the purposes stated in section 462A.53 and the
Minnesota Constitution, article XI, section 16.
new text end

new text begin Subd. 8. new text end

new text begin Reports to legislature. new text end

new text begin (a) By January 15 of each odd-numbered year, the
council must submit a report to the legislature on the activities for which money has been
or will be spent for the current biennium and the activities for which money is recommended
to be spent in the next biennium.
new text end

new text begin (b) By January 15 of each even-numbered year, the council may submit to the legislature
supplemental recommendations on the manner in which money from the rental opportunity
fund should be appropriated in the next fiscal year.
new text end

new text begin Subd. 9. new text end

new text begin Compensation. new text end

new text begin Members may be compensated as provided in section 15.059.
new text end

Sec. 7. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective July 1, 2025, if the constitutional amendment proposed in article
1, section 1, is adopted by the voters.
new text end