1.1 	A bill for an act
1.2 	relating to housing; establishing budget for Minnesota Housing Finance Agency; 
1.3 	modifying various housing policy and finance provisions; expanding and 
1.4 	establishing certain homeownership, manufactured home, and rent assistance 
1.5 	programs; expanding requirements, uses, and amount of housing infrastructure 
1.6 	bonds; establishing metropolitan region sales tax; establishing local affordable 
1.7 	housing aid; establishing requirements for nonprofit grantees; requiring reports; 
1.8 	appropriating money;amending Minnesota Statutes 2022, sections 82.75, 
1.9 	subdivision 8; 297A.99, subdivision 1; 327C.095, subdivisions 12, 13, 16; 462.357, 
1.10 	subdivision 1; 462A.05, subdivision 14, by adding subdivisions; 462A.201, 
1.11 	subdivision 2; 462A.2035, subdivision 1b; 462A.204, subdivisions 3, 8; 462A.21, 
1.12 	subdivision 3b; 462A.22, subdivision 1; 462A.33, subdivision 2, by adding a 
1.13 	subdivision; 462A.36, subdivision 4, by adding a subdivision; 462A.37, 
1.14 	subdivisions 1, 2, 4, 5, by adding subdivisions; 462A.38, subdivision 1; 462A.39, 
1.15 	subdivisions 2, 5; 469.002, subdivision 12, by adding a subdivision; 473.145; 
1.16 	500.20, subdivision 2a; Laws 2021, First Special Session chapter 8, article 1, 
1.17 	section 3, subdivision 11; Laws 2023, chapter 20, section 1; proposing coding for 
1.18 	new law in Minnesota Statutes, chapters 297A; 462A; 477A.
1.19 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.20 	ARTICLE 1
1.21 	HOUSING APPROPRIATIONS

1.22	Section 1. APPROPRIATIONS.
 	
1.23 	The sums shown in the columns marked "Appropriations" are appropriated to the agency 
1.24 	for the purposes specified in this article. The appropriations are from the general fund, or 
1.25 	another named fund, and are available for the fiscal years indicated for each purpose. The 
1.26 	figures "2024" and "2025" used in this article mean that the appropriations listed under them 
1.27 	are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively. "The 
1.28 	first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium" is 
1.29 	fiscal years 2024 and 2025.

2.1				APPROPRIATIONS
	
2.2				Available for the Year
	
2.3				Ending June 30
	
2.4					2024
		2025

2.5	Sec. 2. HOUSING FINANCE AGENCY

2.6	Subdivision 1.Total Appropriation
 	$
	607,998,000
	$
	457,298,000
	
2.7 	(a) The amounts that may be spent for each 
2.8 	purpose are specified in the following 
2.9 	subdivisions.
2.10 	(b) Unless otherwise specified, this 
2.11 	appropriation is for transfer to the housing 
2.12 	development fund for the programs specified 
2.13 	in this section. Except as otherwise indicated, 
2.14 	this transfer is part of the agency's permanent 
2.15 	budget base.

2.16	Subd. 2.Challenge Program
 		37,925,000
		37,925,000
	
2.17 	(a) This appropriation is for the economic 
2.18 	development and housing challenge program 
2.19 	under Minnesota Statutes, sections 462A.33 
2.20 	and 462A.07, subdivision 14.
2.21 	(b) The base for this program in fiscal year 
2.22 	2026 and beyond is $12,925,000.

2.23	Subd. 3.Workforce Housing Development
 		22,000,000
		22,000,000
	
2.24 	(a) This appropriation is for the Greater 
2.25 	Minnesota workforce housing development 
2.26 	program under Minnesota Statutes, section 
2.27 	462A.39.
2.28 	(b) The base for this program in fiscal year 
2.29 	2026 and beyond is $2,000,000.

3.1
3.2	Subd. 4.Manufactured Home Park 
Infrastructure Grants
 		1,000,000
		1,000,000
	
3.3 	This appropriation is for manufactured home 
3.4 	park infrastructure grants under Minnesota 
3.5 	Statutes, section 462A.2035, subdivision 1b.

3.6	Subd. 5.Workforce Homeownership Program
 		250,000
		250,000
	
3.7 	This appropriation is for the workforce 
3.8 	homeownership program under Minnesota 
3.9 	Statutes, section 462A.38.

3.10	Subd. 6.Housing Trust Fund
 		11,646,000
		11,646,000
	
3.11 	This appropriation is for deposit in the housing 
3.12 	trust fund account created under Minnesota 
3.13 	Statutes, section 462A.201, and may be used 
3.14 	for the purposes provided in that section.

3.15	Subd. 7.Childhood Housing Stability
 		1,750,000
		1,750,000
	
3.16 	This appropriation is for the childhood housing 
3.17 	stability program under Minnesota Statutes, 
3.18 	sections 462A.201, subdivision 2, paragraph 
3.19 	(a), clause (4), and 462A.204, subdivision 8, 
3.20 	to provide assistance to homeless or highly 
3.21 	mobile families with minor children or with 
3.22 	children eligible for enrollment in a 
3.23 	prekindergarten through grade 12 academic 
3.24 	program.

3.25	Subd. 8.Bridges
 		5,338,000
		5,338,000
	
3.26 	This appropriation is for the bridges housing 
3.27 	assistance program under Minnesota Statutes, 
3.28 	section 462A.2097.

3.29	Subd. 9.Family Homeless Prevention
 		10,269,000
		85,269,000
	
3.30 	(a) This appropriation is for the family 
3.31 	homeless prevention and assistance programs 
3.32 	under Minnesota Statutes, section 462A.204.
4.1 	(b) The base for this program in fiscal year 
4.2 	2026 and beyond is $10,269,000.

4.3	Subd. 10.Home Ownership Assistance Fund
 		885,000
		885,000
	
4.4 	This appropriation is for the home ownership 
4.5 	assistance program under Minnesota Statutes, 
4.6 	section 462A.21, subdivision 8.

4.7	Subd. 11.Affordable Rental Investment Fund
 		4,218,000
		4,218,000
	
4.8 	This appropriation is for the affordable rental 
4.9 	investment fund program under Minnesota 
4.10 	Statutes, section 462A.21, subdivision 8b, to 
4.11 	finance the acquisition, rehabilitation, and debt 
4.12 	restructuring of federally assisted rental 
4.13 	property and for making equity take-out loans 
4.14 	under Minnesota Statutes, section 462A.05, 
4.15 	subdivision 39.

4.16
4.17	Subd. 12.Owner-Occupied Housing 
Rehabilitation
 		2,772,000
		2,772,000
	
4.18 	This appropriation is for the rehabilitation of 
4.19 	owner-occupied housing under Minnesota 
4.20 	Statutes, section 462A.05, subdivisions 14 and 
4.21 	14a.

4.22	Subd. 13.Rental Housing Rehabilitation
 		3,743,000
		3,743,000
	
4.23 	This appropriation is for the rehabilitation of 
4.24 	eligible rental housing under Minnesota 
4.25 	Statutes, section 462A.05, subdivision 14.

4.26
4.27	Subd. 14.Homeownership Education, 
Counseling, and Training
 		1,857,000
		1,857,000
	
4.28 	(a) This appropriation is for the 
4.29 	homeownership education, counseling, and 
4.30 	training program under Minnesota Statutes, 
4.31 	section 462A.209.
4.32 	(b) The base for this program in fiscal year 
4.33 	2026 and beyond is $857,000.

5.1	Subd. 15.Capacity-Building Grants
 		4,645,000
		4,645,000
	
5.2 	(a) This appropriation is for capacity-building 
5.3 	grants under Minnesota Statutes, section 
5.4 	462A.21, subdivision 3b.
5.5 	(b) The base for this program in fiscal year 
5.6 	2026 and beyond is $645,000.

5.7	Subd. 16.Supportive Housing
 		2,500,000
		2,500,000
	
5.8 	This appropriation is for the supportive 
5.9 	housing program under Minnesota Statutes, 
5.10 	section 462A.42. This is a onetime 
5.11 	appropriation.

5.12
5.13	Subd. 17.Greater Minnesota Housing 
Infrastructure Grants
 		5,000,000
		-0-
	
5.14 	This appropriation is for the Greater 
5.15 	Minnesota housing infrastructure grant 
5.16 	program under Minnesota Statutes, section 
5.17 	462A.43. This is a onetime appropriation.

5.18	Subd. 18.Housing Infrastructure Bonds
 		92,500,000
		92,500,000
	
5.19 	This appropriation is for the housing 
5.20 	infrastructure program for the eligible 
5.21 	purposes under Minnesota Statutes, section 
5.22 	462A.37, subdivision 2. This is a onetime 
5.23 	appropriation.

5.24	Subd. 19.Homeownership Investment Grants
 		40,000,000
		40,000,000
	
5.25 	This appropriation is for the homeownership 
5.26 	investment grants program. This is a onetime 
5.27 	appropriation.

5.28	Subd. 20.Manufactured Home Lending Grants
 		25,000,000
		-0-
	
5.29 	This appropriation is for the manufactured 
5.30 	home lending grants program. This is a 
5.31 	onetime appropriation.

6.1
6.2	Subd. 21.Manufactured Home Park Cooperative 
Purchase
 		10,000,000
		-0-
	
6.3 	This appropriation is for the manufactured 
6.4 	home park cooperative purchase program. This 
6.5 	is a onetime appropriation.

6.6	Subd. 22.Local Housing Trust Fund
 		7,700,000
		-0-
	
6.7 	This appropriation is for local housing trust 
6.8 	fund grants. This is a onetime appropriation.

6.9	Subd. 23.Rent Assistance
 		50,000,000
		50,000,000
	
6.10 	This appropriation is for deposit in the state 
6.11 	rent assistance account in the housing 
6.12 	development fund for expenditure on the rent 
6.13 	assistance program under Minnesota Statutes, 
6.14 	section 462A.2095. Of this amount, 
6.15 	$20,000,000 is added to the agency's 
6.16 	permanent budget base.

6.17
6.18	Subd. 24.First-Generation Homebuyers Down 
Payment Assistance Fund
 		150,000,000
		-0-
	
6.19 	This appropriation is for the first-generation 
6.20 	homebuyers down payment assistance fund. 
6.21 	This appropriation is onetime. Services 
6.22 	rendered under grant contracts with the grantee 
6.23 	may occur any time up until June 30, 2026.

6.24	Subd. 25.Build Wealth Minnesota
 		1,500,000
		1,500,000
	
6.25 	(a) This appropriation is for a grant to Build 
6.26 	Wealth Minnesota to provide a family 
6.27 	stabilization plan program, including program 
6.28 	outreach, financial literacy education, and 
6.29 	budget and debt counseling. This is a onetime 
6.30 	appropriation.
6.31 	(b) The base for this program in fiscal year 
6.32 	2026 and beyond is $500,000.

7.1
7.2	Subd. 26.First-Time Homebuyer, Fee-Based 
Home Purchase Financing
 		5,000,000
		5,000,000
	
7.3 	This appropriation is for the first-time 
7.4 	homebuyer, fee-based home purchase 
7.5 	financing program. This appropriation is 
7.6 	onetime. Services rendered under grant 
7.7 	contracts with the grantee may occur any time 
7.8 	up until June 30, 2026.

7.9	Subd. 27.Community Stabilization
 		75,000,000
		75,000,000
	
7.10 	This appropriation is for the community 
7.11 	stabilization program under Minnesota 
7.12 	Statutes, section 462A.41. This a onetime 
7.13 	appropriation. Of this amount, $10,000,000 is 
7.14 	for a grant to AEON for Huntington Place.

7.15	Subd. 28.High-Rise Sprinkler System Grant
 		10,000,000
		-0-
	
7.16 	This appropriation is for the high-rise sprinkler 
7.17 	system grant program. This appropriation is 
7.18 	onetime. Of this amount, up to $4,000,000 
7.19 	must be for a grant to CommonBond 
7.20 	Communities for installation of sprinkler 
7.21 	systems at two buildings known as Seward 
7.22 	Tower West located at 2515 South 9th Street 
7.23 	in Minneapolis and Seward Tower East 
7.24 	located at 2910 East Franklin Avenue in 
7.25 	Minneapolis.

7.26	Subd. 29.Lead Safe Homes
 		4,000,000
		-0-
	
7.27 	This appropriation is for the lead safe homes 
7.28 	grant program under Minnesota Statutes, 
7.29 	section 462A.2906. This appropriation is 
7.30 	onetime.

7.31	Subd. 30.Landlord Risk Mitigation Fund
 		500,000
		-0-
	
7.32 	(a) This appropriation is for grants to eligible 
7.33 	applicants to create or expand risk mitigation 
7.34 	programs to reduce landlord financial risks 
8.1 	for renting to persons eligible for services 
8.2 	under Minnesota Statutes, sections 245.4661, 
8.3 	subdivision 9, paragraph (a), clause (2); 
8.4 	462A.204; and 462A.2097. This appropriation 
8.5 	is onetime.
8.6 	(b) Eligible programs may reimburse landlords 
8.7 	for costs, including but not limited to 
8.8 	nonpayment of rent or damage costs above 
8.9 	those costs covered by security deposits. The 
8.10 	agency may give higher priority to applicants 
8.11 	that demonstrate a matching amount of money 
8.12 	by a local unit of government, business, or 
8.13 	nonprofit organization. Grantees must 
8.14 	establish a procedure to review and validate 
8.15 	claims and reimbursements under this grant 
8.16 	program.
8.17 	(c) Eligible grantees include but are not limited 
8.18 	to nonprofit organizations under Minnesota 
8.19 	Statutes, section 462A.03, subdivision 22, and 
8.20 	supportive housing providers under Minnesota 
8.21 	Statutes, section 245.4661, subdivision 9, 
8.22 	paragraph (a), clause (2).

8.23	Subd. 31.Housing Meditation
 		1,500,000
		-0-
	
8.24 	This appropriation is for the Minnesota 
8.25 	Housing mediation grant program. This 
8.26 	appropriation is onetime.

8.27	Subd. 32.Northland Foundation
 		2,000,000
		-0-
	
8.28 	This appropriation is for a grant to Northland 
8.29 	Foundation for use on expenditures authorized 
8.30 	under Minnesota Statutes, section 462C.16, 
8.31 	subdivision 3 and on assisting local 
8.32 	governments to establish local or regional 
8.33 	housing trust funds. Northland Foundation 
8.34 	may award grants and loans to other entities 
9.1 	to expend on authorized expenditures under 
9.2 	this section. This appropriation is onetime and 
9.3 	available until June 30, 2025.

9.4	Subd. 33.Stable Housing Organization Relief
 		25,000,000
		-0-
	
9.5 	This appropriation is for the stable housing 
9.6 	organization relief program. This appropriation 
9.7 	is onetime.

9.8	Sec. 3. MANAGEMENT AND BUDGET
 	$
	300,000
	$
	-0-
	
9.9 	$300,000 in fiscal year 2024 is to the 
9.10 	commissioner of management and budget to 
9.11 	fund a study by Management Analysis and 
9.12 	Development on expediting rental assistance 
9.13 	payment. This is a onetime appropriation.

9.14 	Sec. 4. FINANCIAL REVIEW OF NONPROFIT GRANT RECIPIENTS REQUIRED.
 9.15 		Subdivision 1.Financial review required. (a) Before awarding a competitive, 
9.16 	legislatively named, single source, or sole source grant to a nonprofit organization under 
9.17 	this act, the grantor must require the applicant to submit financial information sufficient for 
9.18 	the grantor to document and assess the applicant's current financial standing and management. 
9.19 	Items of significant concern must be addressed with the applicant and resolved to the 
9.20 	satisfaction of the grantor before a grant is awarded. The grantor must document the material 
9.21 	requested and reviewed; whether the applicant had a significant operating deficit, a deficit 
9.22 	in unrestricted net assets, or insufficient internal controls; whether and how the applicant 
9.23 	resolved the grantor's concerns; and the grantor's final decision. This documentation must 
9.24 	be maintained in the grantor's files.
9.25 	(b) At a minimum, the grantor must require each applicant to provide the following 
9.26 	information:
9.27 	(1) the applicant's most recent Form 990, Form 990-EZ, or Form 990-N filed with the 
9.28 	Internal Revenue Service. If the applicant has not been in existence long enough or is not 
9.29 	required to file Form 990, Form 990-EZ, or Form 990-N, the applicant must demonstrate 
9.30 	to the grantor that the applicant is exempt and must instead submit documentation of internal 
9.31 	controls and the applicant's most recent financial statement prepared in accordance with 
9.32 	generally accepted accounting principles and approved by the applicant's board of directors 
9.33 	or trustees or, if there is no such board, by the applicant's managing group;
10.1 	(2) evidence of registration and good standing with the secretary of state under Minnesota 
10.2 	Statutes, chapter 317A, or other applicable law;
10.3 	(3) unless exempt under Minnesota Statutes, section 309.515, evidence of registration 
10.4 	and good standing with the attorney general under Minnesota Statutes, chapter 309; and
10.5 	(4) if required under Minnesota Statutes, section 309.53, subdivision 3, the applicant's 
10.6 	most recent audited financial statement prepared in accordance with generally accepted 
10.7 	accounting principles.
10.8 		Subd. 2.Authority to postpone or forgo. Notwithstanding any contrary provision in 
10.9 	this act, a grantor that identifies an area of significant concern regarding the financial standing 
10.10 	or management of a legislatively named applicant may postpone or forgo awarding the 
10.11 	grant.
10.12 		Subd. 3.Authority to award subject to additional assistance and oversight. A grantor 
10.13 	that identifies an area of significant concern regarding an applicant's financial standing or 
10.14 	management may award a grant to the applicant if the grantor provides or the grantee 
10.15 	otherwise obtains additional technical assistance, as needed, and the grantor imposes 
10.16 	additional requirements in the grant agreement. Additional requirements may include but 
10.17 	are not limited to enhanced monitoring, additional reporting, or other reasonable requirements 
10.18 	imposed by the grantor to protect the interests of the state.
10.19 		Subd. 4.Relation to other law and policy. The requirements in this section are in 
10.20 	addition to any other requirements imposed by law; the commissioner of administration 
10.21 	under Minnesota Statutes, sections 16B.97 and 16B.98; or agency policy.

10.22 	ARTICLE 2
10.23 	HOUSING GRANT PROGRAMS

10.24 	Section 1. Minnesota Statutes 2022, section 462A.05, is amended by adding a subdivision 
10.25 	to read:
10.26 		Subd. 42.Rent assistance program. The agency may administer the rent assistance 
10.27 	program established in section 462A.2095.

10.28 	Sec. 2. [462A.2095] RENT ASSISTANCE PROGRAM.
10.29 		Subdivision 1.Program established. (a) The state rent assistance account is established 
10.30 	as a separate account in the housing development fund. Money in the account is appropriated 
10.31 	to the agency for grants to program administrators for the purposes specified in this section.
11.1 	(b) Money deposited in the account under section 297A.9925 is for grants to program 
11.2 	administrators in the metropolitan counties.
11.3 	(c) Money deposited in the account through a general fund appropriation is for grants 
11.4 	to program administrators outside the metropolitan counties, as defined by section 473.121, 
11.5 	subdivision 4.
11.6 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
11.7 	meanings given.
11.8 	(b) "Eligible household" means a household with an annual income of up to 50 percent 
11.9 	of the area median income as determined by the United States Department of Housing and 
11.10 	Urban Development, adjusted for family size, that is paying more than 30 percent of the 
11.11 	household's annual income on rent. Eligibility is determined at the time a household first 
11.12 	receives rent assistance under this section. Eligibility shall be recertified every year thereafter. 
11.13 	Eligible household does not include a household receiving federal tenant-based or 
11.14 	project-based assistance under Section 8 of the United States Housing Act of 1937, as 
11.15 	amended.
11.16 	(c) "Program administrator" means:
11.17 	(1) a housing and redevelopment authority or other local government agency or authority 
11.18 	that administers federal tenant-based or project-based assistance under Section 8 of the 
11.19 	United States Housing Act of 1937, as amended;
11.20 	(2) a Tribal government or Tribal housing authority; or
11.21 	(3) if the local housing authority, Tribal government, or Tribal housing authority declines 
11.22 	to administer the program established in this section, a nongovernmental organization 
11.23 	determined by the agency to have the capacity to administer the program.
11.24 		Subd. 3.Grants to program administrators. (a) The agency may make grants to 
11.25 	program administrators to provide rental assistance for eligible households. For both 
11.26 	tenant-based and project-based assistance, program administrators shall pay assistance 
11.27 	directly to housing providers. Rental assistance may be provided in the form of tenant-based 
11.28 	assistance or project-based assistance. Notwithstanding the amounts awarded under 
11.29 	subdivision 1, paragraph (b), and to the extent practicable, the agency must make grants 
11.30 	statewide in proportion to the number of households eligible for assistance in each county 
11.31 	according to the most recent American Community Survey of the United States Census 
11.32 	Bureau.
12.1 	(b) The program administrator may use its existing procedures to administer the rent 
12.2 	assistance program or may develop alternative procedures with the goals of reaching 
12.3 	households most in need and incentivizing landlord participation. The agency must approve 
12.4 	a program administrator's alternative procedures.
12.5 		Subd. 4.Amount of rent assistance. A program administrator may provide tenant-based 
12.6 	or project-based vouchers in amounts equal to the difference between 30 percent of household 
12.7 	income and the rent charged, plus an allowance for utilities if not included in rent. A program 
12.8 	administrator may not provide assistance that is more than the difference between 30 percent 
12.9 	of the tenant's gross income and 120 percent of the payment standard, plus utilities, as 
12.10 	established by the local public housing authority, unless otherwise authorized by the agency.
12.11 		Subd. 5.Administrative fees. The agency shall consult with public housing authorities 
12.12 	to determine the amount of administrative fees to pay to program administrators.
12.13 		Subd. 6.Rent assistance not income. (a) Rent assistance grant money under this section 
12.14 	is excluded from income as defined in sections 290.0674, subdivision 2a, and 290A.03, 
12.15 	subdivision 2.
12.16 	(b) Notwithstanding any law to the contrary, payments under this section must not be 
12.17 	considered income, assets, or personal property for purposes of determining eligibility or 
12.18 	recertifying eligibility for state public assistance, including but not limited to:
12.19 	(1) child care assistance programs under chapter 119B;
12.20 	(2) general assistance, Minnesota supplemental aid, and food support under chapter 
12.21 	256D;
12.22 	(3) housing support under chapter 256I;
12.23 	(4) Minnesota family investment program and diversionary work program under chapter 
12.24 	256J; and
12.25 	(5) economic assistance programs under chapter 256P.
12.26 	(c) The commissioner of human services must not consider rent assistance grant money 
12.27 	under this section as income or assets under section 256B.056, subdivision 1a, paragraph 
12.28 	(a); subdivision 3; or subdivision 3c, or for persons with eligibility determined under section 
12.29 	256B.057, subdivision 3, 3a, or 3b.
12.30 		Subd. 7.Oversight. The agency may direct program administrators to comply with 
12.31 	applicable sections of Code of Federal Regulations, title 24, parts 982 and 983.

13.1 	Sec. 3. [462A.2096] LEAD SAFE HOMES GRANT PROGRAM.
13.2 		Subdivision 1.Establishment. The Minnesota Housing Finance Agency shall establish 
13.3 	a lead safe homes grant program to provide grants to increase lead testing and make 
13.4 	residential rental units lead safe. The pilot program shall provide one grant to a project 
13.5 	serving an area in a metropolitan county, as defined in section 473.121, subdivision 4, and 
13.6 	one grant to a project serving an area outside a metropolitan county with a priority for 
13.7 	targeting grant resources to landlords and tenants where there are high concentrations of 
13.8 	lead poisoning in children based on information provided by the commissioner of health.
13.9 		Subd. 2.Eligibility. (a) Eligible grantees must be a nonprofit or political subdivision 
13.10 	capable of providing funding and services to a defined geographic area. The grant programs 
13.11 	established by the grantees receiving funding under this section must provide lead risk 
13.12 	assessments completed by a lead inspector or a lead risk assessor licensed by the 
13.13 	commissioner of health pursuant to section 144.9505 for properties built before 1978 to 
13.14 	determine the presence of lead hazards and to provide interim controls to reduce lead health 
13.15 	hazards. The grant programs must provide funding for testing and lead hazard reduction to:
13.16 	(1) landlords of residential buildings with 11 units or less where the tenant's income 
13.17 	does not exceed 60 percent of area median income;
13.18 	(2) landlords of residential buildings with 12 units or more where at least 50 percent of 
13.19 	the tenants are below 60 percent of the median income; and
13.20 	(3) tenants with an income that does not exceed 60 percent of area median income.
13.21 	(b) A landlord or tenant must first access other available state and federal funding related 
13.22 	to lead testing and lead hazard reduction for which they are eligible.
13.23 	(c) Up to ten percent of a grant award to a nonprofit or political subdivision may be used 
13.24 	to administer the grant and provide education and outreach about lead health hazards.
13.25 		Subd. 3.Short title.  This section shall be known as the "Dustin Luke Shields Act."

13.26 	Sec. 4. [462A.2098] MINNESOTA HOUSING MEDIATION GRANT PROGRAM.
13.27 		Subdivision 1.Establishment; purpose. The agency shall establish a housing mediation 
13.28 	program to reduce negative consequences to renters, rental property owners, families, 
13.29 	schools, employers, neighborhoods, and communities by providing support to renters and 
13.30 	residential rental property owners.
14.1 		Subd. 2.Selection criteria. The agency shall award grants to community dispute 
14.2 	resolution programs certified under section 494.015. The agency shall develop forms and 
14.3 	procedures for soliciting and reviewing applications for grants under this section.
14.4 		Subd. 3.Administration. The agency shall award a grant to Community Mediation 
14.5 	Minnesota to administrate the housing mediation program to ensure effective statewide 
14.6 	management, program design, and outreach among the grantees.
14.7 		Subd. 4.Authorized uses of grant. The grant funding must be used to:
14.8 	(1) provide housing dispute resolution services;
14.9 	(2) increase awareness of and access to housing dispute resolution services statewide;
14.10 	(3) provide alternative dispute resolution services, including but not limited to eviction 
14.11 	prevention, mediation, and navigation services;
14.12 	(4) partner with culturally specific dispute resolution programs to provide training and 
14.13 	assistance with virtual and in-person mediation services;
14.14 	(5) increase mediation services for seniors and renters with disabilities and illnesses that 
14.15 	face housing instability;
14.16 	(6) increase the diversity and cultural competency of the housing mediator roster;
14.17 	(7) integrate housing mediation services with navigation and resource connection services, 
14.18 	legal assistance, and court services programs; and
14.19 	(8) develop and administer evaluation tools to design, modify, and replicate effective 
14.20 	program outcomes.

14.21 	Sec. 5. [462A.41] COMMUNITY STABILIZATION PROGRAM.
14.22 		Subdivision 1.Establishment. The agency shall establish a community stabilization 
14.23 	program for the purpose of providing grants or loans for the preservation of naturally 
14.24 	occurring affordable housing through acquisition or rehabilitation.
14.25 		Subd. 2.Definitions. For the purposes of this section, "naturally occurring affordable 
14.26 	housing" means:
14.27 	(1) multiunit rental housing that:
14.28 	(i) is at least 20 years old; and
15.1 	(ii) has rents in a majority of units that are affordable to households at or below 60 
15.2 	percent of the greater of state or area median income as determined by the United States 
15.3 	Department of Housing and Urban Development; or
15.4 	(2) owner-occupied housing located in communities where market pressures or significant 
15.5 	deferred rehabilitation needs, as defined by the agency, create opportunities for displacement 
15.6 	or the loss of owner-occupied housing affordable to households at or below 115 percent of 
15.7 	the greater of state or area median income as determined by the United States Department 
15.8 	of Housing and Urban Development.
15.9 		Subd. 3.Eligible recipients. (a) Grants or loans may be made to:
15.10 	(1) a local unit of government;
15.11 	(2) a federally recognized American Indian Tribe located in Minnesota or its Tribally 
15.12 	Designated Housing Entity;
15.13 	(3) a private developer;
15.14 	(4) limited equity cooperatives;
15.15 	(5) cooperatives created under chapter 308A or 308B;
15.16 	(6) community land trusts created for the purposes outlined in section 462A.31, 
15.17 	subdivision 1; or
15.18 	(7) a nonprofit organization.
15.19 	(b) The agency shall make a grant to a statewide intermediary to facilitate the acquisition 
15.20 	and associated rehabilitation of existing multiunit rental housing and may use an intermediary 
15.21 	or intermediaries for the acquisition and associated rehabilitation of owner-occupied housing.
15.22 		Subd. 4.Eligible uses. The program shall provide grants or loans for the purpose of 
15.23 	acquisition, rehabilitation, interest rate reduction, or gap financing of housing to support 
15.24 	the preservation of naturally occurring affordable housing. Priority in funding shall be given 
15.25 	to proposals that serve lower incomes and maintain longer periods of affordability.
15.26 		Subd. 5.Owner-occupied housing income limits. Households served through grants 
15.27 	or loans related to owner-occupied housing must have, at initial occupancy, income that is 
15.28 	at or below 115 percent of the greater of state or area median income as determined by the 
15.29 	United States Department of Housing and Urban Development.
15.30 		Subd. 6.Multifamily housing rent limits. Multifamily housing financed through grants 
15.31 	or loans under this section must remain affordable to low-income or moderate-income 
15.32 	households as defined by the agency.
16.1 		Subd. 7.Application. (a) The agency shall develop forms and procedures for soliciting 
16.2 	and reviewing applications for grants or loans under this section. The agency shall consult 
16.3 	with interested stakeholders when developing the guidelines and procedures for the program.
16.4 	(b) Notwithstanding any other applicable law, the agency may accept applications on a 
16.5 	noncompetitive, rolling basis in order to provide funds for eligible properties as they become 
16.6 	available.
16.7 		Subd. 8.Voucher requirement for multifamily properties. Rental properties that 
16.8 	receive funds must accept rental subsidies, including but not limited to vouchers under 
16.9 	Section 8 of the United States Housing Act of 1937, as amended.

16.10 	Sec. 6. [462A.42] SUPPORTIVE HOUSING PROGRAM.
16.11 		Subdivision 1.Establishment. The agency shall establish a supportive housing program 
16.12 	to provide funding to increase alignment with housing development financing and strengthen 
16.13 	supportive housing for individuals and families who have experienced homelessness.
16.14 		Subd. 2.Definition. For the purposes of this section, "supportive housing" means housing 
16.15 	that is not time-limited and provides or coordinates with services necessary for residents to 
16.16 	maintain housing stability and maximize opportunities for education and employment.
16.17 		Subd. 3.Eligible recipients. Funding may be made to a local unit of government, a 
16.18 	federally recognized American Indian Tribe or its Tribally Designated Housing Entity 
16.19 	located in Minnesota, a private developer, or a nonprofit organization.
16.20 		Subd. 4.Eligible uses. (a) Funds shall be used to cover costs needed for supportive 
16.21 	housing to operate effectively. Costs may include but are not limited to building operating 
16.22 	expenses such as front desk, tenant service coordination, revenue shortfall, and security 
16.23 	costs.
16.24 	(b) Funds may be used to create partnerships with the health care sector and other sectors 
16.25 	to demonstrate sustainable ways to provide services for supportive housing residents, improve 
16.26 	access to health care, and reduce the use of expensive emergency and institutional care. 
16.27 	This may be done in partnership with other state agencies, including the Department of 
16.28 	Health and the Department of Human Services.
16.29 		Subd. 5.Application. The commissioner shall develop forms and procedures for soliciting 
16.30 	and reviewing applications for funding under this section. The commissioner shall consult 
16.31 	with interested stakeholders when developing the guidelines and procedures for the program.

17.1 	Sec. 7. [462A.43] GREATER MINNESOTA HOUSING INFRASTRUCTURE 
17.2 	GRANT PROGRAM.
17.3 		Subdivision 1.Grant program established. The commissioner may make grants to 
17.4 	cities to provide up to 50 percent of the capital costs of public infrastructure necessary for 
17.5 	an eligible workforce housing development project. The commissioner may make a grant 
17.6 	award only after determining that nonstate resources are committed to complete the project. 
17.7 	The nonstate contribution may be cash, other committed grant funds, or in kind. In-kind 
17.8 	contributions may include the value of the site, whether the site is prepared before or after 
17.9 	the law appropriating money for the grant is enacted.
17.10 		Subd. 2.Definitions. (a) For the purposes of this section, the following terms have the 
17.11 	meanings given.
17.12 	(b) "City" means a statutory or home rule charter city that includes undeveloped parcels 
17.13 	that is located outside the metropolitan area, as defined in section 473.121, subdivision 2.
17.14 	(c) "Housing infrastructure" means publicly owned physical infrastructure necessary to 
17.15 	support housing development projects, including but not limited to sewers, water supply 
17.16 	systems, utility extensions, streets, wastewater treatment systems, stormwater management 
17.17 	systems, and facilities for pretreatment of wastewater to remove phosphorus.
17.18 		Subd. 3.Eligible projects. Housing infrastructure projects eligible for a grant under this 
17.19 	section may be for the development of single-family housing, manufactured home parks, 
17.20 	or multifamily housing, either owner-occupied or rental.
17.21 		Subd. 4.Application. (a) The commissioner must develop forms and procedures for 
17.22 	soliciting and reviewing applications for grants under this section. At a minimum, a city 
17.23 	must include in its application a resolution of the city council certifying that the required 
17.24 	nonstate match is available. The commissioner must evaluate complete applications for 
17.25 	funding for eligible projects to determine that:
17.26 	(1) the project is necessary to increase sites available for housing development that will 
17.27 	provide adequate housing stock for the current or future workforce; and
17.28 	(2) the increase in workforce housing will result in substantial public and private capital 
17.29 	investment in the city in which the project would be located.
17.30 	(b) The determination of whether to make a grant for a site is within the discretion of 
17.31 	the commissioner, subject to this section. The commissioner's decisions and application of 
17.32 	the criteria are not subject to judicial review, except for abuse of discretion.
18.1 		Subd. 5.Maximum grant amount. A city may receive no more than $30,000 per lot 
18.2 	for single-family, duplex, triplex, or fourplex housing developed and no more than $60,000 
18.3 	per lot for manufactured home parks or multifamily housing with more than four units per 
18.4 	building. A city may receive no more than $500,000 in two years for one or more housing 
18.5 	developments.
18.6 		Subd. 6.Cancellation of grant; return of grant money. If, after five years, the 
18.7 	commissioner determines that a project has not proceeded in a timely manner and is unlikely 
18.8 	to be completed, the commissioner must cancel the grant and require the grantee to return 
18.9 	all grant money awarded for that project.
18.10 		Subd. 7.Appropriation. Grant money returned to the commissioner is appropriated to 
18.11 	the commissioner to make additional grants under this section.

18.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

18.13 	Sec. 8. STABLE HOUSING ORGANIZATION RELIEF PROGRAM.
 18.14 		Subdivision 1.Establishment. The commissioner of the Minnesota Housing Finance 
18.15 	Agency must establish and administer a grant program in accordance with this section to 
18.16 	support nonprofits that are experiencing significant detrimental financial impacts due to 
18.17 	recent economic and social conditions.
18.18 		Subd. 2.Eligible organizations. To be eligible for a grant under this section an 
18.19 	organization must:
18.20 	(1) be a nonprofit organization that is tax exempt under section 501(c)(3) of the Internal 
18.21 	Revenue Code that has been doing business in the state for at least ten years as demonstrated 
18.22 	by registration or filing of organizational documents with the secretary of state;
18.23 	(2) have its primary operations located in the state;
18.24 	(3) be experiencing significant detrimental financial impact due to recent economic and 
18.25 	social conditions, including but not limited to decreased operating revenue due to loss of 
18.26 	rental income or increased operating expenses due to inflation in utility expenses, insurance, 
18.27 	or other expenses;
18.28 	(4) have supportive services options available for the individuals and families residing 
18.29 	in the rental housing it provides to low-income populations; and
18.30 	(5) provide, as of December 31, 2022, housing units in the state that it owns or controls 
18.31 	consisting of any of the following:
19.1 	(i) at least 1,000 units of naturally occurring affordable housing. For purposes of this 
19.2 	item, "naturally occurring affordable housing" means multiunit rental housing developments 
19.3 	that have not received financing from the federal low-income housing tax credit program 
19.4 	for which the majority of the units have agreements in place to be affordable to individuals 
19.5 	or families with incomes at or below 60 percent of the area median income as determined 
19.6 	by the United States Department of Housing and Urban Development, adjusted for family 
19.7 	size, and that do not receive project- or other place-based rental subsidies from the federal 
19.8 	government;
19.9 	(ii) rental housing units, not including naturally occurring affordable housing, of which 
19.10 	50 percent of the total number of units are rented to individuals or families whose annual 
19.11 	incomes, according to the most recent income certification as of December 31, 2022, are 
19.12 	at or below 30 percent of the area median income as determined by the United States 
19.13 	Department of Housing and Urban Development, adjusted for family size; or
19.14 	(iii) at least 250 units of permanent supportive housing, as defined in Minnesota Statutes, 
19.15 	section 462A.36, subdivision 1, paragraph (e).
19.16 		Subd. 3.Grant program. (a) The commissioner must provide grants to eligible 
19.17 	organizations as provided in this subdivision.
19.18 	(b) An organization that seeks to obtain a grant must apply to the commissioner by July 
19.19 	28, 2023, and certify:
19.20 	(1) that it is eligible for a grant under subdivision 2;
19.21 	(2) the total number of rental housing units it owns or controls in the state, including 
19.22 	but not limited to the rental housing units it provides under subdivision 2, clause (5); and
19.23 	(3) information on significant detrimental financial impacts due to recent economic and 
19.24 	social conditions.
19.25 	(c) The commissioner must disburse grants to eligible organizations no later than 
19.26 	September 30, 2023.
19.27 	(d) The amount of a grant to an eligible organization equals:
19.28 	(1) the number of units an eligible organization certifies that it owns or controls in the 
19.29 	state divided by the total number of units certified by all eligible organizations; multiplied 
19.30 	by
19.31 	(2) the total amount of the appropriation for this grant program.
20.1 	(e) No grant to an eligible organization may exceed $4,000 per certified unit. The per-unit 
20.2 	amount of the grant for each eligible organization must be calculated based on the total 
20.3 	number of units each eligible organization owns or controls in the state and is not limited 
20.4 	to the number of units that qualify it as an eligible organization under subdivision 2, clause 
20.5 	(5).
20.6 	(f) Grantees must use grant funds to maintain or improve the housing stability of tenants 
20.7 	by expending funds on:
20.8 	(1) property maintenance, improvements, and security;
20.9 	(2) providing services, including services and programs that promote economic and 
20.10 	social mobility;
20.11 	(3) efforts to attract and retain employees that will assist in providing services and support 
20.12 	to tenants; or
20.13 	(4) forgiveness of all or a portion of rent balances owed by former or current tenants.
20.14 	The commissioner may approve additional uses of this fund that would have a beneficial 
20.15 	impact on the housing stability of tenants.
20.16 		Subd. 4.Reporting and financial audit. Each grantee must submit a report to the 
20.17 	commissioner by September 30, 2024, on the use of those funds in a form determined by 
20.18 	the commissioner. By January 15, 2024, each grantee must report to the chair and ranking 
20.19 	minority members of the legislative committees having jurisdiction over housing on the use 
20.20 	of funds awarded under this section.

20.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

20.22 	Sec. 9. FIRST-GENERATION HOMEBUYERS DOWN PAYMENT ASSISTANCE 
20.23 	FUND.
 20.24 		Subdivision 1.Establishment. A first-generation homebuyers down payment assistance 
20.25 	fund is established as a pilot project under the administration of the Midwest Minnesota 
20.26 	Community Development Corporation (MMCDC), a community development financial 
20.27 	institution (CDFI) as defined under the Riegle Community Development and Regulatory 
20.28 	Improvement Act of 1994, to provide targeted assistance to eligible households.  The Housing 
20.29 	Finance Agency must release grant funds to MMCDC as needed, and may do so in tranches 
20.30 	for administrative efficiency.
20.31 		Subd. 2. Eligible household. For purposes of this section, "eligible household" means 
20.32 	a household:
21.1 	(1) whose income is at or below 100 percent of the area median income at the time of 
21.2 	purchase; and
21.3 	(2) that includes at least one adult member:
21.4 	(i) who is preapproved for a first mortgage loan;
21.5 	(ii) who either never owned a home or who owned a home but lost it due to foreclosure; 
21.6 	and
21.7 	(iii) whose parent or prior legal guardian either never owned a home or owned a home 
21.8 	but lost it due to foreclosure.
21.9 	At least one adult household member meeting the criteria under clause (2) must complete 
21.10 	an approved homebuyer education course prior to signing a purchase agreement and, 
21.11 	following the purchase of the home, must occupy it as their primary residence.
21.12 		Subd. 3.Use of funds. Assistance under this section is limited to ten percent of the 
21.13 	purchase price of a one or two unit home, not to exceed $32,000. Funds shall be reserved 
21.14 	for eligible households. Fund reservation is not contingent on having an executed purchase 
21.15 	agreement. The assistance must be provided in the form of a loan that is forgivable at a rate 
21.16 	of 20 percent per year on the day after the anniversary date of the note. The prorated balance 
21.17 	due is repayable if the property converts to nonowner occupancy, is sold, is subjected to an 
21.18 	ineligible refinance, is subjected to an unauthorized transfer of title, or is subjected to a 
21.19 	completed foreclosure action within the five-year loan term. Recapture can be waived in 
21.20 	the event of financial or personal hardship. Funds may be used for closing costs, down 
21.21 	payment, or principal reduction. The eligible household may select any first mortgage lender 
21.22 	or broker of their choice, provided that the funds are used in conjunction with a conforming 
21.23 	first mortgage loan that is fully amortizing and meets the standards of a qualified mortgage 
21.24 	or meets the minimum standards for exemption under Code of Federal Regulations, title 
21.25 	12, section 1026.43. Funds may be used in conjunction with other programs the eligible 
21.26 	household may qualify for and the loan placed in any priority position.
21.27 		Subd. 4.Administration. The first-generation homebuyers down payment assistance 
21.28 	fund is available statewide and shall be administered by MMCDC, the designated central 
21.29 	CDFI. MMCDC may originate and service funds and authorize other CDFIs, Tribal entities, 
21.30 	and nonprofit organizations administering down payment assistance to reserve, originate, 
21.31 	fund, and service funds for eligible households. Administrative costs must not exceed $3,200 
21.32 	per loan. Any funds recaptured prior to June 30, 2026, are returned to MMCDC for 
21.33 	redistribution to eligible households. Any unused funds, or funds recaptured on or after 
21.34 	June 30, 2026, shall be remitted to the agency to be returned to the general fund.
22.1 		Subd. 5.Report to legislature. By January 15 each year, the fund administrator, 
22.2 	MMCDC, must report to the chairs and ranking minority members of the legislative 
22.3 	committees with jurisdiction over housing finance and policy the following information:
22.4 	(1) the number and amount of loans closed;
22.5 	(2) the median loan amount;
22.6 	(3) the number and amount of loans issued by race or ethnic categories;
22.7 	(4) the median home purchase price;
22.8 	(5) the type of mortgage;
22.9 	(6) the total amount returned to the fund; and
22.10 	(7) the number and amount of loans issued by county.

22.11 	EFFECTIVE DATE. This section is effective July 1, 2023.

22.12 	Sec. 10. HIGH-RISE SPRINKLER SYSTEM GRANT PROGRAM.
 22.13 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this section.
22.14 	(b) "Eligible building" means an existing residential building in which:
22.15 	(1) at least one story used for human occupancy is 75 feet or more above the lowest 
22.16 	level of fire department vehicle access; and
22.17 	(2) at least two-thirds of its units are rented to an individual or family with an annual 
22.18 	income of up to 50 percent of the area median income as determined by the United States 
22.19 	Department of Housing and Urban Development, adjusted for family size, that is paying 
22.20 	no more than 30 percent of annual income on rent.
22.21 	(c) "Sprinkler system" means the same as the term "fire protection system" as defined 
22.22 	in Minnesota Statutes, section 299M.01.
22.23 		Subd. 2.Grant program. The commissioner of the Housing Finance Agency must make 
22.24 	grants to owners of eligible buildings for installation of sprinkler systems and for relocation 
22.25 	of residents during the installation of sprinkler systems. Priority shall be given to nonprofit 
22.26 	applicants. The maximum grant per eligible building shall be $2,000,000. Each grant to a 
22.27 	nonprofit organization shall require a 25 percent match. Each grant to a for-profit organization 
22.28 	shall require a 50 percent match.
22.29 		Subd. 3.Expiration. This section expires June 30, 2026.

23.1 	Sec. 11. LOCAL HOUSING TRUST FUND GRANTS.
 23.2 	(a) The commissioner of the Minnesota Housing Finance Agency shall award grants for 
23.3 	existing local housing trust funds established under Minnesota Statutes, section 462C.16 
23.4 	and for local governments seeking to establish local housing trust funds.
23.5 	(b) A local government with an existing local housing trust fund may receive a grant 
23.6 	amount equal to 100 percent of the public revenue committed to the local housing trust fund 
23.7 	from any source other than the state or federal government, up to $150,000, and in addition, 
23.8 	an amount equal to 50 percent of the public revenue committed to the local housing trust 
23.9 	fund from any source other than the state or federal government that is more than $150,000 
23.10 	but not more than $300,000.
23.11 	(c) The agency may award grants of up to $5,000 to a local government, or two or more 
23.12 	local governments operating under a joint powers agreement, which does not have a local 
23.13 	housing trust fund or a regional housing trust fund. Grants must be used to establish a local 
23.14 	or regional housing trust fund. The agency shall make grants on a first-come, first-served 
23.15 	basis.
23.16 	(d) Except as provided in paragraph (c), a grantee must use grant funds within eight 
23.17 	years of receipt for purposes: (1) authorized under Minnesota Statutes, section 462C.16, 
23.18 	subdivision 3; and (2) benefiting households with incomes at or below 115 percent of the 
23.19 	state median income. A grantee must return any grant funds not used for these purposes 
23.20 	within eight years of receipt to the commissioner of the Minnesota Housing Finance Agency 
23.21 	for deposit into the housing development fund.

23.22 	EFFECTIVE DATE. This section is effective July 1, 2023.

23.23 	Sec. 12. HOMEOWNERSHIP INVESTMENT GRANTS PROGRAM.
 23.24 		Subdivision 1.Definitions. For the purposes of this section, the following terms have 
23.25 	the meanings given:
23.26 	(1) "commissioner" means the commissioner of the Minnesota Housing Finance Agency; 
23.27 	and
23.28 	(2) "eligible organization" means a nonprofit organization the commissioner determines 
23.29 	to be eligible under subdivision 2.
23.30 		Subd. 2.Eligible organization. To be eligible for a grant under this subdivision, a 
23.31 	nonprofit organization must:
24.1 	(1) be an organization defined under section 501(c)(3) of the Internal Revenue Code or 
24.2 	an equivalent organization;
24.3 	(2) have primary operations located in Minnesota; and
24.4 	(3) be certified as a community development financial institution by the United States 
24.5 	Department of the Treasury and must provide affordable housing lending or financing 
24.6 	programs.
24.7 		Subd. 3.Eligible services. Eligible organizations may apply for housing investment 
24.8 	grants for affordable owner-occupied housing projects for:
24.9 	(1) housing development to increase the supply of affordable owner-occupied homes;
24.10 	(2) financing programs for affordable owner-occupied new home construction;
24.11 	(3) acquisition, rehabilitation, and resale of affordable owner-occupied homes or homes 
24.12 	to be converted to owner-occupied homes;
24.13 	(4) financing programs for affordable owner-occupied manufactured housing; and
24.14 	(5) services to increase access to stable, affordable, owner-occupied housing in 
24.15 	low-income communities, Indigenous American Indian communities, and communities of 
24.16 	color.
24.17 		Subd. 4.Commissioner duties. (a) The commissioner shall consult with eligible 
24.18 	organizations and develop forms, applications, and reporting requirements for use by eligible 
24.19 	organizations. All organizations applying for a grant must include as part of their application 
24.20 	a plan to create new affordable home ownership and home preservation opportunities for 
24.21 	targeted areas. The commissioner shall develop a grant award scoring system that ensures 
24.22 	a distribution of awards throughout the state based on population and eligible households 
24.23 	and communities.
24.24 	(b) The commissioner shall complete the requirements under paragraph (a) within 90 
24.25 	days of enactment of this section.
24.26 	(c) By January 15, 2024, the commissioner must submit a report to the chairs and ranking 
24.27 	minority members of the legislative committees with jurisdiction over housing finance and 
24.28 	policy detailing the use of funds under this section.

24.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

25.1 	Sec. 13. FIRST-TIME HOMEBUYER, FEE-BASED HOME PURCHASE 
25.2 	FINANCING PROGRAM.
 25.3 		Subdivision 1.Administration. A first-time homebuyer, fee-based home purchasing 
25.4 	financing program is established as a pilot project under the administration of NeighborWorks 
25.5 	Home Partners.
25.6 		Subd. 2.Eligible homebuyer. For the purposes of this section, an "eligible homebuyer" 
25.7 	means an individual:
25.8 	(1) whose income is at or below 130 percent of area median income;
25.9 	(2) who resides in a census tract where at least 60 percent of occupied housing units are 
25.10 	renter-occupied, based on the most recent estimates or experimental estimates provided by 
25.11 	the American Community Survey of the United States Census Bureau;
25.12 	(3) who is financing the purchase of an eligible property with an interest-free, fee-based 
25.13 	mortgage; and
25.14 	(4) who is a first-time homebuyer as defined by Code of Federal Regulations, title 24, 
25.15 	section 92.2.
25.16 		Subd. 3.Eligible property. (a) For the purposes of this section, an "eligible property" 
25.17 	means residential real property that is a condominium, a townhouse, a single-family home, 
25.18 	a manufactured home titled as real property, or another building containing up to four 
25.19 	dwelling units.
25.20 	(b) An eligible property may include property subject to a ground lease with a community 
25.21 	land trust, property on Indian Trust Land, or property participating in a shared equity 
25.22 	homeownership program.
25.23 		Subd. 4.Use of funds. NeighborWorks Home Partners shall use the money appropriated 
25.24 	to this program to provide forgivable grants of down payment assistance not to exceed 30 
25.25 	percent of the price of the eligible property that an eligible homebuyer seeks to purchase. 
25.26 	NeighborWorks Home Partners shall provide grants to eligible homebuyers using no-interest, 
25.27 	fee-based loans to finance the purchase of eligible properties. In making grants, 
25.28 	NeighborWorks Home Partners shall determine the circumstances, terms, and conditions 
25.29 	under which all or any portion of the grant will be repaid and shall determine the appropriate 
25.30 	security required for a repayment. The administrative fees for operating the program shall 
25.31 	not exceed five percent of the appropriation. An eligible homebuyer may use the funds in 
25.32 	conjunction with any other funding programs.
26.1 		Subd. 5.Conditions of receiving a grant. (a) To qualify for assistance under this section, 
26.2 	an eligible homebuyer must:
26.3 	(1) complete an approved homebuyer education course prior to signing a purchase 
26.4 	agreement;
26.5 	(2) complete an approved landlord education course prior to signing a purchase agreement 
26.6 	if the property being purchased contains more than one dwelling unit;
26.7 	(3) contribute a minimum of $1,000 to down payment or closing costs; and
26.8 	(4) occupy the purchased property as the homebuyer's primary residence.
26.9 	(b) NeighborWorks Home Partners may establish additional requirements to ensure that 
26.10 	program participants comply with this subdivision.
26.11 		Subd. 6.Reports. By January 15 and July 15 each year, NeighborWorks Home Partners 
26.12 	must report to the chairs and ranking minority members of the legislative committees with 
26.13 	jurisdiction over housing finance and policy the following information:
26.14 	(1) the number and amount of grants issued;
26.15 	(2) the median grant amount;
26.16 	(3) the number and amount of grants issued by race or ethnic categories;
26.17 	(4) the median home purchase price;
26.18 	(5) the total amount returned to the fund; and
26.19 	(6) the number and amount of grants issued by county.

26.20 	Sec. 14. MANUFACTURED HOME LENDING GRANTS.
 26.21 		Subdivision 1.Definitions. For the purposes of this section, the following terms have 
26.22 	the meanings given:
26.23 	(1) "commissioner" means the commissioner of the Minnesota Housing Finance Agency; 
26.24 	and
26.25 	(2) "eligible organization" means a nonprofit organization the commissioner determines 
26.26 	to be eligible under subdivision 2.
26.27 		Subd. 2.Eligible organizations. To be eligible for a grant under this section, a nonprofit 
26.28 	must:
26.29 	(1) be an organization defined under section 501(c)(3) of the Internal Revenue Code, or 
26.30 	an equivalent organization;
27.1 	(2) have primary operations located in the state of Minnesota;
27.2 	(3) be a qualified nonprofit lender or a community development financial institution 
27.3 	certified by the United States Department of the Treasury; and
27.4 	(4) serve low-income populations in manufactured home communities owned by residents, 
27.5 	cooperatives, nonprofits, or municipalities.
27.6 		Subd. 3.Eligible services. Eligible organizations may apply for manufactured home 
27.7 	lending funds for the following services:
27.8 	(1) new manufactured home financing programs;
27.9 	(2) manufactured home down payment assistance; and
27.10 	(3) manufactured home repair, renovation, removal, and site preparation financing 
27.11 	programs.
27.12 		Subd. 4.Commissioner duties. Within 90 days of final enactment, the commissioner 
27.13 	shall develop the forms, applications, and reporting requirements for use by eligible 
27.14 	organizations. In developing these materials, the commissioner shall consult with 
27.15 	manufactured housing cooperatives, resident-owned manufactured home communities, and 
27.16 	nonprofit organizations working with manufactured housing cooperatives and resident-owned 
27.17 	communities.

27.18 	Sec. 15. MANUFACTURED HOME PARK COOPERATIVE PURCHASE 
27.19 	PROGRAM.
 27.20 	(a) The funding under this section shall be used for a revolving loan fund under Minnesota 
27.21 	Statutes, section 462A.05, subdivision 35, to provide interest-free loans for residents of 
27.22 	manufactured home parks to purchase the manufactured home park in which they reside 
27.23 	for the purpose of conversion of the manufactured home park to cooperative ownership. 
27.24 	Repayments of principal from loans issued under this section must be used for the purposes 
27.25 	of this section.
27.26 	(b) The agency shall develop criteria for loan requests under this section. Within 90 days 
27.27 	of final enactment, the commissioner shall develop the forms, applications, and reporting 
27.28 	requirements for use by eligible organizations. In developing these materials, the 
27.29 	commissioner shall consult with manufactured housing cooperatives, resident-owned 
27.30 	manufactured home communities, and nonprofit organizations working with manufactured 
27.31 	housing cooperatives and resident-owned communities.
28.1 	(c) Borrowers must use funds to assist in the creation and preservation of housing that 
28.2 	is affordable to households with incomes at or below 80 percent of the greater of state or 
28.3 	area median income.
28.4 	(d) A deed purchased with a loan under this section must contain a covenant running 
28.5 	with the land requiring that the land be used as a manufactured home park for 30 years from 
28.6 	the date of purchase.
28.7 	(e) For the purposes of this section, the terms "manufactured home," "manufactured 
28.8 	home park," and "resident" have the meanings given in Minnesota Statutes, section 327C.015.

28.9 	ARTICLE 3
28.10 	BONDING AUTHORITY AND AUTHORIZATION

28.11 	Section 1. Minnesota Statutes 2022, section 462A.22, subdivision 1, is amended to read:
28.12 		Subdivision 1.Debt ceiling. The aggregate principal amount of general obligation bonds 
28.13 	and notes which are outstanding at any time, excluding the principal amount of any bonds 
28.14 	and notes refunded by the issuance of new bonds or notes, shall not exceed the sum of 
28.15 	$5,000,000,000.

28.16 	Sec. 2. Minnesota Statutes 2022, section 462A.36, is amended by adding a subdivision to 
28.17 	read:
28.18 		Subd. 2a.Refunding bonds. (a) The agency may issue nonprofit housing bonds in one 
28.19 	or more series to refund bonds authorized in subdivision 2. The amount of refunding nonprofit 
28.20 	housing bonds that may be issued from time to time will not be subject to the dollar limitation 
28.21 	contained in subdivision 2 nor will those bonds be included in computing the amount of 
28.22 	bonds that may be issued within that dollar limitation.
28.23 	(b) In the refunding of nonprofit housing bonds, each bond must be called for redemption 
28.24 	prior to its maturity in accordance with its terms no later than the earliest date on which it 
28.25 	may be redeemed. No refunding bonds may be issued unless as of the date of the refunding 
28.26 	bonds the present value of the dollar amount of the debt service on the refunding bonds, 
28.27 	computed to their stated maturity dates, is lower than the present value of the dollar amount 
28.28 	of debt service on all nonprofit housing bonds refunded computed to their stated maturity 
28.29 	dates. For purposes of this subdivision, "present value of the dollar amount of debt service" 
28.30 	means the dollar amount of debt service to be paid, discounted to the nominal date of the 
28.31 	refunding bonds at a rate equal to the yield on the refunding bonds.
29.1 	(c) If as a result of the issuance of refunding bonds the amount of debt service for an 
29.2 	annual period is less than the amount transferred by the commissioner of management and 
29.3 	budget to pay debt service for that annual period, the agency must deduct the excess amount 
29.4 	from the actual amount of debt service on those bonds certified for the next subsequent 
29.5 	annual period.

29.6 	Sec. 3. Minnesota Statutes 2022, section 462A.36, subdivision 4, is amended to read:
29.7 		Subd. 4.Appropriation; payment to agency or trustee. (a) The agency must certify 
29.8 	annually to the commissioner of management and budget the actual amount of annual debt 
29.9 	service on each series of bonds issued under subdivision 2.
29.10 	(b) Each July 15, beginning in 2009 and through 2031, if any nonprofit housing bonds 
29.11 	issued under subdivision 2, or nonprofit housing bonds issued to refund those bonds, remain 
29.12 	outstanding, the commissioner of management and budget must transfer to the nonprofit 
29.13 	housing bond account established under section 462A.21, subdivision 32, the amount 
29.14 	certified under paragraph (a), not to exceed $2,400,000 annually. The amounts necessary 
29.15 	to make the transfers are appropriated from the general fund to the commissioner of 
29.16 	management and budget.
29.17 	(c) The agency may pledge to the payment of the nonprofit housing bonds the payments 
29.18 	to be made by the state under this section.

29.19 	Sec. 4. Minnesota Statutes 2022, section 462A.37, is amended by adding a subdivision to 
29.20 	read:
29.21 		Subd. 2i.Additional authorization. In addition to the amounts authorized in subdivisions 
29.22 	2 to 2h, the agency may issue up to $33,333,500 in housing infrastructure bonds in one or 
29.23 	more series to which the payments under this section may be pledged.

29.24 	EFFECTIVE DATE. This section is effective July 1, 2023.

29.25 	Sec. 5. Minnesota Statutes 2022, section 462A.37, is amended by adding a subdivision to 
29.26 	read:
29.27 		Subd. 2j.Additional authorization. In addition to the amounts authorized in subdivisions 
29.28 	2 to 2i, the agency may issue up to $33,333,500 in housing infrastructure bonds in one or 
29.29 	more series to which the payments under this section may be pledged.

29.30 	EFFECTIVE DATE. This section is effective July 1, 2024.

30.1 	Sec. 6. Minnesota Statutes 2022, section 462A.37, is amended by adding a subdivision to 
30.2 	read:
30.3 		Subd. 2k.Refunding bonds. (a) The agency may issue housing infrastructure bonds in 
30.4 	one or more series to refund bonds authorized in this section. The amount of refunding 
30.5 	housing infrastructure bonds that may be issued from time to time will not be subject to the 
30.6 	dollar limitation contained in any of the authorizations in this section nor will those bonds 
30.7 	be included in computing the amount of bonds that may be issued within those dollar 
30.8 	limitations.
30.9 	(b) In the refunding of housing infrastructure bonds, each bond must be called for 
30.10 	redemption prior to its maturity in accordance with its terms no later than the earliest date 
30.11 	on which it may be redeemed. No refunding bonds may be issued unless as of the date of 
30.12 	the refunding bonds the present value of the dollar amount of the debt service on the 
30.13 	refunding bonds, computed to their stated maturity dates, is lower than the present value of 
30.14 	the dollar amount of debt service on all housing infrastructure bonds refunded computed to 
30.15 	their stated maturity dates. For purposes of this subdivision, "present value of the dollar 
30.16 	amount of debt service" means the dollar amount of debt service to be paid, discounted to 
30.17 	the nominal date of the refunding bonds at a rate equal to the yield on the refunding bonds.
30.18 	(c) If as a result of the issuance of refunding bonds the amount of debt service for an 
30.19 	annual period is less than the amount transferred by the commissioner of management and 
30.20 	budget to pay debt service for that annual period, the agency must deduct the excess amount 
30.21 	from the actual amount of debt service on those bonds certified for the next subsequent 
30.22 	annual period.

30.23 	Sec. 7. Minnesota Statutes 2022, section 462A.37, subdivision 4, is amended to read:
30.24 		Subd. 4.Appropriation; payment to agency or trustee. (a) The agency must certify 
30.25 	annually to the commissioner of management and budget the actual amount of annual debt 
30.26 	service on each series of bonds issued under subdivision 2.
30.27 	(b) Each July 15, beginning in 2013 and through 2035, if any housing infrastructure 
30.28 	bonds issued under subdivision 2, or housing infrastructure bonds issued to refund those 
30.29 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
30.30 	the affordable housing infrastructure bond account established under section 462A.21, 
30.31 	subdivision 33, the amount certified under paragraph (a), not to exceed $2,200,000 annually. 
30.32 	The amounts necessary to make the transfers are appropriated from the general fund to the 
30.33 	commissioner of management and budget.
31.1 	(c) The agency may pledge to the payment of the housing infrastructure bonds the 
31.2 	payments to be made by the state under this section.

31.3 	Sec. 8. Minnesota Statutes 2022, section 462A.37, subdivision 5, is amended to read:
31.4 		Subd. 5.Additional appropriation. (a) The agency must certify annually to the 
31.5 	commissioner of management and budget the actual amount of annual debt service on each 
31.6 	series of bonds issued under this section.
31.7 	(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure 
31.8 	bonds issued under subdivision 2a remain outstanding, or housing infrastructure bonds 
31.9 	issued to refund those bonds, the commissioner of management and budget must transfer 
31.10 	to the housing infrastructure bond account established under section 462A.21, subdivision 
31.11 	33, the amount certified under paragraph (a), not to exceed $6,400,000 annually. The amounts 
31.12 	necessary to make the transfers are appropriated from the general fund to the commissioner 
31.13 	of management and budget.
31.14 	(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure 
31.15 	bonds issued under subdivision 2b remain outstanding, or housing infrastructure bonds 
31.16 	issued to refund those bonds, the commissioner of management and budget must transfer 
31.17 	to the housing infrastructure bond account established under section 462A.21, subdivision 
31.18 	33, the amount certified under paragraph (a), not to exceed $800,000 annually. The amounts 
31.19 	necessary to make the transfers are appropriated from the general fund to the commissioner 
31.20 	of management and budget.
31.21 	(d) Each July 15, beginning in 2019 and through 2040, if any housing infrastructure 
31.22 	bonds issued under subdivision 2c remain outstanding, or housing infrastructure bonds 
31.23 	issued to refund those bonds, the commissioner of management and budget must transfer 
31.24 	to the housing infrastructure bond account established under section 462A.21, subdivision 
31.25 	33, the amount certified under paragraph (a), not to exceed $2,800,000 annually. The amounts 
31.26 	necessary to make the transfers are appropriated from the general fund to the commissioner 
31.27 	of management and budget.
31.28 	(e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure 
31.29 	bonds issued under subdivision 2d remain outstanding, or housing infrastructure bonds 
31.30 	issued to refund those bonds, the commissioner of management and budget must transfer 
31.31 	to the housing infrastructure bond account established under section 462A.21, subdivision 
31.32 	33, the amount certified under paragraph (a). The amounts necessary to make the transfers 
31.33 	are appropriated from the general fund to the commissioner of management and budget.
32.1 	(f) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure 
32.2 	bonds issued under subdivision 2e remain outstanding, or housing infrastructure bonds 
32.3 	issued to refund those bonds, the commissioner of management and budget must transfer 
32.4 	to the housing infrastructure bond account established under section 462A.21, subdivision 
32.5 	33, the amount certified under paragraph (a). The amounts necessary to make the transfers 
32.6 	are appropriated from the general fund to the commissioner of management and budget.
32.7 	(g) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure 
32.8 	bonds issued under subdivision 2f remain outstanding, or housing infrastructure bonds 
32.9 	issued to refund those bonds, the commissioner of management and budget must transfer 
32.10 	to the housing infrastructure bond account established under section 462A.21, subdivision 
32.11 	33, the amount certified under paragraph (a). The amounts necessary to make the transfers 
32.12 	are appropriated from the general fund to the commissioner of management and budget.
32.13 	(h) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure 
32.14 	bonds issued under subdivision 2g remain outstanding, or housing infrastructure bonds 
32.15 	issued to refund those bonds, the commissioner of management and budget must transfer 
32.16 	to the housing infrastructure bond account established under section 462A.21, subdivision 
32.17 	33, the amount certified under paragraph (a). The amounts necessary to make the transfers 
32.18 	are appropriated from the general fund to the commissioner of management and budget.
32.19 	(i) Each July 15, beginning in 2023 and through 2044, if any housing infrastructure 
32.20 	bonds issued under subdivision 2h remain outstanding, or housing infrastructure bonds 
32.21 	issued to refund those bonds, the commissioner of management and budget must transfer 
32.22 	to the housing infrastructure bond account established under section 462A.21, subdivision 
32.23 	33, the amount certified under paragraph (a). The amounts necessary to make the transfers 
32.24 	are appropriated from the general fund to the commissioner of management and budget.
32.25 	(j) Each July 15, beginning in 2024 and through 2045, if any housing infrastructure 
32.26 	bonds issued under subdivision 2i, or housing infrastructure bonds issued to refund those 
32.27 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
32.28 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
32.29 	the amount certified under paragraph (a), not to exceed $6,400,000 annually. The amounts 
32.30 	necessary to make the transfers are appropriated from the general fund to the commissioner 
32.31 	of management and budget.
32.32 	(k) Each July 15, beginning in 2025 and through 2046, if any housing infrastructure 
32.33 	bonds issued under subdivision 2j, or housing infrastructure bonds issued to refund those 
32.34 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
33.1 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
33.2 	the amount certified under paragraph (a), not to exceed $6,400,000 annually. The amounts 
33.3 	necessary to make the transfers are appropriated from the general fund to the commissioner 
33.4 	of management and budget.
33.5 	(l) The agency may pledge to the payment of the housing infrastructure bonds the 
33.6 	payments to be made by the state under this section.

33.7 	ARTICLE 4
33.8 	ELIGIBILITY AND USES

33.9 	Section 1. Minnesota Statutes 2022, section 462A.05, subdivision 14, is amended to read:
33.10 		Subd. 14.Rehabilitation loans. It may agree to purchase, make, or otherwise participate 
33.11 	in the making, and may enter into commitments for the purchase, making, or participation 
33.12 	in the making, of eligible loans for rehabilitation, with terms and conditions as the agency 
33.13 	deems advisable, to persons and families of low and moderate income, and to owners of 
33.14 	existing residential housing for occupancy by such persons and families, for the rehabilitation 
33.15 	of existing residential housing owned by them. Rehabilitation may include the addition or 
33.16 	rehabilitation of a detached accessory dwelling unit. The loans may be insured or uninsured 
33.17 	and may be made with security, or may be unsecured, as the agency deems advisable. The 
33.18 	loans may be in addition to or in combination with long-term eligible mortgage loans under 
33.19 	subdivision 3. They may be made in amounts sufficient to refinance existing indebtedness 
33.20 	secured by the property, if refinancing is determined by the agency to be necessary to permit 
33.21 	the owner to meet the owner's housing cost without expending an unreasonable portion of 
33.22 	the owner's income thereon. No loan for rehabilitation shall be made unless the agency 
33.23 	determines that the loan will be used primarily to make the housing more desirable to live 
33.24 	in, to increase the market value of the housing, for compliance with state, county or municipal 
33.25 	building, housing maintenance, fire, health or similar codes and standards applicable to 
33.26 	housing, or to accomplish energy conservation related improvements. In unincorporated 
33.27 	areas and municipalities not having codes and standards, the agency may, solely for the 
33.28 	purpose of administering the provisions of this chapter, establish codes and standards. No 
33.29 	loan under this subdivision for the rehabilitation of owner-occupied housing shall be denied 
33.30 	solely because the loan will not be used for placing the owner-occupied residential housing 
33.31 	in full compliance with all state, county, or municipal building, housing maintenance, fire, 
33.32 	health, or similar codes and standards applicable to housing. Rehabilitation loans shall be 
33.33 	made only when the agency determines that financing is not otherwise available, in whole 
33.34 	or in part, from private lenders upon equivalent terms and conditions. Accessibility 
34.1 	rehabilitation loans authorized under this subdivision may be made to eligible persons and 
34.2 	families without limitations relating to the maximum incomes of the borrowers if:
34.3 	(1) the borrower or a member of the borrower's family requires a level of care provided 
34.4 	in a hospital, skilled nursing facility, or intermediate care facility for persons with 
34.5 	developmental disabilities;
34.6 	(2) home care is appropriate; and
34.7 	(3) the improvement will enable the borrower or a member of the borrower's family to 
34.8 	reside in the housing.
34.9 	The agency may waive any requirement that the housing units in a residential housing 
34.10 	development be rented to persons of low and moderate income if the development consists 
34.11 	of four or less dwelling units, one of which is occupied by the owner.

34.12 	Sec. 2. Minnesota Statutes 2022, section 462A.05, is amended by adding a subdivision to 
34.13 	read:
34.14 		Subd. 43.Housing disparities. The agency must prioritize its use of appropriations for 
34.15 	any program under this chapter to serve households most affected by housing disparities.

34.16 	Sec. 3. Minnesota Statutes 2022, section 462A.05, is amended by adding a subdivision to 
34.17 	read:
34.18 		Subd. 44.Special purpose credit program. The agency may establish special purpose 
34.19 	credit programs to assist one or more economically disadvantaged classes of persons in 
34.20 	order to address the effects of historic and current discrimination which resulted in limiting 
34.21 	access to housing credit by persons on the basis of race, color, ethnicity, or national origin. 
34.22 	A special purpose credit program may include a wide variety of remedies, including but 
34.23 	not limited to loans or other financial assistance, based on current, documented need as 
34.24 	determined by the agency.

34.25 	Sec. 4. Minnesota Statutes 2022, section 462A.05, is amended by adding a subdivision to 
34.26 	read:
34.27 		Subd. 45.Indian Tribes. Notwithstanding any other provision in this chapter, at its 
34.28 	discretion the agency may make any federally recognized Indian Tribe in Minnesota, or 
34.29 	their associated Tribally Designated Housing Entity (TDHE) as defined by United States 
34.30 	Code, title 25, section 4103(22), eligible for funding authorized under this chapter.

35.1 	Sec. 5. Minnesota Statutes 2022, section 462A.05, is amended by adding a subdivision to 
35.2 	read:
35.3 		Subd. 46.Translation services. The agency shall provide to all applicants for funding 
35.4 	authorized under this chapter interpreter or translation services to ensure that any 
35.5 	communications to the applicant are made in the applicant's primary language. The agency 
35.6 	shall require grantees, borrowers, or any other recipients of funding under this chapter to 
35.7 	provide interpreter or translation services to any member of the public seeking access to 
35.8 	services funded under this chapter.

35.9 	Sec. 6. Minnesota Statutes 2022, section 462A.201, subdivision 2, is amended to read:
35.10 		Subd. 2.Low-income housing. (a) The agency may use money from the housing trust 
35.11 	fund account to provide loans or grants for:
35.12 	(1) projects for the development, construction, acquisition, preservation, and rehabilitation 
35.13 	of low-income rental and limited equity cooperative housing units, including temporary 
35.14 	and transitional housing;
35.15 	(2) the costs of operating rental housing, as determined by the agency, that are unique 
35.16 	to the operation of low-income rental housing or supportive housing;
35.17 	(3) rental assistance, either project-based or tenant-based; and
35.18 	(4) programs to secure stable housing for families with minor children or with children 
35.19 	eligible for enrollment in a prekindergarten through grade 12 academic program.
35.20 	For purposes of this section, "transitional housing" has the meaning given by the United 
35.21 	States Department of Housing and Urban Development. Loans or grants for residential 
35.22 	housing for migrant farmworkers may be made under this section.
35.23 	(b) The housing trust fund account must be used for the benefit of persons and families 
35.24 	whose income, at the time of initial occupancy, does not exceed 60 percent of median income 
35.25 	as determined by the United States Department of Housing and Urban Development for the 
35.26 	metropolitan area. At least 75 percent of the funds in the housing trust fund account must 
35.27 	be used for the benefit of persons and families whose income, at the time of initial occupancy, 
35.28 	does not exceed 30 percent of the median family income for the metropolitan area as defined 
35.29 	in section 473.121, subdivision 2. For purposes of this section, a household with a housing 
35.30 	assistance voucher under Section 8 of the United States Housing Act of 1937, as amended, 
35.31 	is deemed to meet the income requirements of this section.
35.32 	The median family income may be adjusted for families of five or more.
36.1 	(c) Rental assistance under this section must be provided by governmental units which 
36.2 	administer housing assistance supplements or by for-profit or nonprofit organizations 
36.3 	experienced in housing management. Rental assistance shall be limited to households whose 
36.4 	income at the time of initial receipt of rental assistance does not exceed 60 percent of median 
36.5 	income, as determined by the United States Department of Housing and Urban Development 
36.6 	for the metropolitan area. Priority among comparable applications for tenant-based rental 
36.7 	assistance will be given to proposals that will serve households whose income at the time 
36.8 	of initial application for rental assistance does not exceed 30 percent of median income, as 
36.9 	determined by the United States Department of Housing and Urban Development for the 
36.10 	metropolitan area. Rental assistance must be terminated when it is determined that 30 percent 
36.11 	of a household's monthly income for four consecutive months equals or exceeds the market 
36.12 	rent for the unit in which the household resides plus utilities for which the tenant is 
36.13 	responsible. Rental assistance may only be used for rental housing units that meet the housing 
36.14 	maintenance code of the local unit of government in which the unit is located, if such a code 
36.15 	has been adopted, or the housing quality standards adopted by the United States Department 
36.16 	of Housing and Urban Development, if no local housing maintenance code has been adopted.
36.17 	(d) In making the loans or grants, the agency shall determine the terms and conditions 
36.18 	of repayment and the appropriate security, if any, should repayment be required. To promote 
36.19 	the geographic distribution of grants and loans, the agency may designate a portion of the 
36.20 	grant or loan awards to be set aside for projects located in specified congressional districts 
36.21 	or other geographical regions specified by the agency. The agency may adopt rules for 
36.22 	awarding grants and loans under this subdivision.

36.23 	Sec. 7. Minnesota Statutes 2022, section 462A.2035, subdivision 1b, is amended to read:
36.24 		Subd. 1b.Manufactured home park infrastructure grants and loans. Eligible 
36.25 	recipients may use manufactured home park infrastructure grants and loans under this 
36.26 	program for:
36.27 	(1) acquisition of and improvements in manufactured home parks; and
36.28 	(2) infrastructure, including storm shelters and community facilities.

36.29 	Sec. 8. Minnesota Statutes 2022, section 462A.204, subdivision 3, is amended to read:
36.30 		Subd. 3.Set aside. At least one grant must be awarded in an area located outside of the 
36.31 	metropolitan area. A county, a group of contiguous counties jointly acting together, a Tribe, 
36.32 	a group of Tribes, or a community-based nonprofit organization with a sponsoring resolution 
37.1 	from each of the county boards of the counties located within its operating jurisdiction may 
37.2 	apply for and receive grants for areas located outside the metropolitan area.

37.3 	Sec. 9. Minnesota Statutes 2022, section 462A.204, subdivision 8, is amended to read:
37.4 		Subd. 8.School Childhood housing stability. (a) The agency in consultation with the 
37.5 	Interagency Council on Homelessness may establish a school childhood housing stability 
37.6 	project under the family homeless prevention and assistance program. The purpose of the 
37.7 	project is to secure stable housing for families with school-ageminor children or with 
37.8 	children eligible for enrollment in a prekindergarten through grade 12 academic program 
37.9 	who have moved frequently and for unaccompanied youth. For purposes of this subdivision, 
37.10 	"unaccompanied youth" are minors who are leaving foster care or juvenile correctional 
37.11 	facilities, or minors who meet the definition of a child in need of services or protection 
37.12 	under section 260C.007, subdivision 6, but for whom no court finding has been made 
37.13 	pursuant to that statute.
37.14 	(b) The agency shall make grants to family homeless prevention and assistance projects 
37.15 	in communities with: (1) a school or schools that have a significant degree of student 
37.16 	mobility; (2) a significant degree of homelessness among families with minor children; or 
37.17 	(3) children eligible for enrollment in a prekindergarten through grade 12 academic program.
37.18 	(c) Each project must be designed to reduce school absenteeism; stabilize children in 
37.19 	one home setting or, at a minimum, in one school setting; and reduce shelter usage. Each 
37.20 	project must include plans for the following:
37.21 	(1) targeting of families with minor children or with children who are eligible for
37.22 	enrollment in a prekindergarten through grade 12 academic program and who are living in 
37.23 	overcrowded conditions in their current housing; are paying more than 50 percent of their 
37.24 	income for rent; or who lack a fixed, regular, and adequate nighttime residence;
37.25 	(2) targeting of unaccompanied youth in need of an alternative residential setting;
37.26 	(3) connecting families with the social services necessary to maintain the families' 
37.27 	stability in their home, including but not limited to housing navigation, legal representation, 
37.28 	and family outreach; and
37.29 	(4) one or more of the following:
37.30 	(i) provision of rental assistance for a specified period of time, which may exceed 24 
37.31 	months; or
38.1 	(ii) provision of support and case management services to improve housing stability, 
38.2 	including but not limited to housing navigation and family outreach.
38.3 	(d) In selecting projects for funding under this subdivision, preference shall be given to 
38.4 	organizations granted funding under section 462A.201, subdivision 2, paragraph (a), clause 
38.5 	(4).
38.6 	(e) No grantee under this subdivision is required to have an advisory committee as 
38.7 	described in subdivision 6.

38.8 	Sec. 10. Minnesota Statutes 2022, section 462A.21, subdivision 3b, is amended to read:
38.9 		Subd. 3b.Capacity building grants. It may make capacity building grants to nonprofit 
38.10 	organizations, local government units, Indian tribes, and Indian tribal organizations to 
38.11 	expand their capacity to provide affordable housing and housing-related services. The grants 
38.12 	may be used to assess housing needs and to develop and implement strategies to meet those 
38.13 	needs, including but not limited to the creation or preservation of affordable housing, 
38.14 	prepurchase and postpurchase counseling and associated administrative costs, and the linking 
38.15 	of supportive services to the housing. The agency shall adopt rules, policies, and procedures
38.16 	specifying the eligible uses of grant money. Funding priority must may be given to those 
38.17 	applicants that include low-income persons in their membership, have provided 
38.18 	housing-related services to low-income people, and demonstrate a local commitment of 
38.19 	local resources, which may include in-kind contributions. Grants under this subdivision 
38.20 	may be made only with specific appropriations by the legislature.

38.21 	Sec. 11. Minnesota Statutes 2022, section 462A.33, subdivision 2, is amended to read:
38.22 		Subd. 2.Eligible recipients. Challenge grants or loans may be made to a city, a federally 
38.23 	recognized American Indian Tribe or subdivision located in Minnesota, a Tribal housing 
38.24 	corporation, a private developer, a nonprofit organization, a school district, a cooperative 
38.25 	unit, as defined in section 123A.24, subdivision 2, or the owner of the housing, including 
38.26 	individuals. For the purpose of this section, "city" has the meaning given it in section 
38.27 	462A.03, subdivision 21. To the extent practicable, grants and loans shall be made so that 
38.28 	an approximately equal number of housing units are financed in the metropolitan area and 
38.29 	in the nonmetropolitan area.

39.1 	Sec. 12. Minnesota Statutes 2022, section 462A.33, is amended by adding a subdivision 
39.2 	to read:
39.3 		Subd. 9.Grant funding to schools. A school district; a cooperative unit, as defined in 
39.4 	section 123A.24, subdivision 2; or a charter school may receive funding under this section 
39.5 	in the form of a grant less than $100,000. A school district, intermediate district, or charter 
39.6 	school that uses a grant under this section to construct a home for owner occupancy must 
39.7 	require the future occupant to participate in the homeownership education counseling and 
39.8 	training program under section 462A.209.

39.9 	Sec. 13. Minnesota Statutes 2022, section 462A.37, subdivision 1, is amended to read:
39.10 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
39.11 	the meanings given.
39.12 	(b) "Abandoned property" has the meaning given in section 117.025, subdivision 5.
39.13 	(c) "Community land trust" means an entity that meets the requirements of section 
39.14 	462A.31, subdivisions 1 and 2.
39.15 	(d) "Debt service" means the amount payable in any fiscal year of principal, premium, 
39.16 	if any, and interest on housing infrastructure bonds and the fees, charges, and expenses 
39.17 	related to the bonds.
39.18 	(e) "Foreclosed property" means residential property where foreclosure proceedings 
39.19 	have been initiated or have been completed and title transferred or where title is transferred 
39.20 	in lieu of foreclosure.
39.21 	(f) "Housing infrastructure bonds" means bonds issued by the agency under this chapter 
39.22 	that:
39.23 	(1) are qualified 501(c)(3) bonds, within the meaning of section 145(a) of the Internal 
39.24 	Revenue Code;
39.25 	(2) finance qualified residential rental projects within the meaning of section 142(d) of 
39.26 	the Internal Revenue Code; or
39.27 	(3) finance the construction or rehabilitation of single-family houses that qualify for 
39.28 	mortgage financing within the meaning of section 143 of the Internal Revenue Code; or
39.29 	(4) (3) are tax-exempt bonds that are not private activity bonds, within the meaning of 
39.30 	section 141(a) of the Internal Revenue Code, for the purpose of financing or refinancing 
39.31 	affordable housing authorized under this chapter.
40.1 	(g) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.
40.2 	(h) "Senior" means a person 55 years of age or older with an annual income not greater 
40.3 	than 50 percent of:.
40.4 	(1) the metropolitan area median income for persons in the metropolitan area; or
40.5 	(2) the statewide median income for persons outside the metropolitan area.
40.6 	(i) "Senior household" means a household with one or more senior members and with 
40.7 	an annual combined income not greater than 50 percent of:
40.8 	(1) the metropolitan area median income for persons in the metropolitan area; or
40.9 	(2) the statewide median income for persons outside the metropolitan area.
40.10 	(i) (j) "Senior housing" means housing intended and operated for occupancy by at least 
40.11 	one senior per unit senior households with at least 80 percent of the units occupied by at 
40.12 	least one senior per unit senior households, and for which there is publication of, and 
40.13 	adherence to, policies and procedures that demonstrate an intent by the owner or manager 
40.14 	to provide housing for seniors. Senior housing may be developed in conjunction with and 
40.15 	as a distinct portion of mixed-income senior housing developments that use a variety of 
40.16 	public or private financing sources.
40.17 	(j) (k) "Supportive housing" means housing that is not time-limited and provides or 
40.18 	coordinates with linkages to services necessary for residents to maintain housing stability 
40.19 	and maximize opportunities for education and employment.

40.20 	Sec. 14. Minnesota Statutes 2022, section 462A.37, subdivision 2, is amended to read:
40.21 		Subd. 2.Authorization. (a) The agency may issue up to $30,000,000 in aggregate 
40.22 	principal amount of housing infrastructure bonds in one or more series to which the payment 
40.23 	made under this section may be pledged. The housing infrastructure bonds authorized in 
40.24 	this subdivision may be issued to fund loans, or grants for the purposes of clause clauses
40.25 	(4) and (7), on terms and conditions the agency deems appropriate, made for one or more 
40.26 	of the following purposes:
40.27 	(1) to finance the costs of the construction, acquisition, and rehabilitation of supportive 
40.28 	housing for individuals and families who are without a permanent residence;
40.29 	(2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned 
40.30 	housing to be used for affordable rental housing and the costs of new construction of rental 
40.31 	housing on abandoned or foreclosed property where the existing structures will be demolished 
40.32 	or removed;
41.1 	(3) to finance that portion of the costs of acquisition of property that is attributable to 
41.2 	the land to be leased by community land trusts to low- and moderate-income home buyers;
41.3 	(4) to finance the acquisition, improvement, and infrastructure of manufactured home 
41.4 	parks under section 462A.2035, subdivision 1b;
41.5 	(5) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction 
41.6 	of senior housing;
41.7 	(6) to finance the costs of acquisition and rehabilitation of federally assisted rental 
41.8 	housing and for the refinancing of costs of the construction, acquisition, and rehabilitation, 
41.9 	and replacement of federally assisted rental housing, including providing funds to refund, 
41.10 	in whole or in part, outstanding bonds previously issued by the agency or another government 
41.11 	unit to finance or refinance such costs; and
41.12 	(7) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction 
41.13 	of single-family housing.; and
41.14 	(8) to finance the costs of construction, acquisition, and rehabilitation of permanent 
41.15 	housing that is affordable to households with incomes at or below 50 percent of the area 
41.16 	median income for the applicable county or metropolitan area as published by the Department 
41.17 	of Housing and Urban Development, as adjusted for household size.
41.18 	(b) Among comparable proposals for permanent supportive housing, preference shall 
41.19 	be given to permanent supportive housing for veterans and other individuals or families 
41.20 	who:
41.21 	(1) either have been without a permanent residence for at least 12 months or at least four 
41.22 	times in the last three years; or
41.23 	(2) are at significant risk of lacking a permanent residence for 12 months or at least four 
41.24 	times in the last three years.
41.25 	(c) Among comparable proposals for senior housing, the agency must give priority to 
41.26 	requests for projects that:
41.27 	(1) demonstrate a commitment to maintaining the housing financed as affordable to 
41.28 	seniors senior households;
41.29 	(2) leverage other sources of funding to finance the project, including the use of 
41.30 	low-income housing tax credits;
42.1 	(3) provide access to services to residents and demonstrate the ability to increase physical 
42.2 	supports and support services as residents age and experience increasing levels of disability;
42.3 	and
42.4 	(4) provide a service plan containing the elements of clause (3) reviewed by the housing 
42.5 	authority, economic development authority, public housing authority, or community 
42.6 	development agency that has an area of operation for the jurisdiction in which the project 
42.7 	is located; and
42.8 	(5) (4) include households with incomes that do not exceed 30 percent of the median 
42.9 	household income for the metropolitan area.
42.10 	(d) To the extent practicable, the agency shall balance the loans made between projects 
42.11 	in the metropolitan area and projects outside the metropolitan area. Of the loans made to 
42.12 	projects outside the metropolitan area, the agency shall, to the extent practicable, balance 
42.13 	the loans made between projects in counties or cities with a population of 20,000 or less, 
42.14 	as established by the most recent decennial census, and projects in counties or cities with 
42.15 	populations in excess of 20,000.
42.16 	(e) Among comparable proposals for permanent housing, the agency must give preference 
42.17 	to projects that will provide housing that is affordable to households at or below 30 percent 
42.18 	of the area median income.
42.19 	(f) If a loan recipient uses the loan for any of the purposes in paragraph (a) on a building 
42.20 	containing more than four units, the loan recipient must construct, convert, or otherwise 
42.21 	adapt the building to include:
42.22 	(1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
42.23 	accessible units, as defined by section 1002 of the current State Building Code Accessibility 
42.24 	Provisions for Dwelling Units in Minnesota, and include at least one roll-in shower; and
42.25 	(2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
42.26 	sensory-accessible units that include:
42.27 	(A) soundproofing between shared walls for first and second floor units;
42.28 	(B) no florescent lighting in units and common areas;
42.29 	(C) low-fume paint;
42.30 	(D) low-chemical carpet; and
43.1 	(E) low-chemical carpet glue in units and common areas. Nothing in this paragraph will 
43.2 	relieve a project funded by the agency from meeting other applicable accessibility 
43.3 	requirements.

43.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

43.5 	Sec. 15. Minnesota Statutes 2022, section 462A.38, subdivision 1, is amended to read:
43.6 		Subdivision 1.Establishment. A workforce and affordable homeownership development 
43.7 	program is established to award homeownership development grants to cities, counties, 
43.8 	Tribal governments, nonprofit organizations, cooperatives created under chapter 308A or 
43.9 	308B, and community land trusts created for the purposes outlined in section 462A.31, 
43.10 	subdivision 1, for development of workforce and affordable homeownership projects. The 
43.11 	purpose of the program is to increase the supply of workforce and affordable, owner-occupied 
43.12 	multifamily or single-family housing throughout Minnesota.

43.13 	Sec. 16. Minnesota Statutes 2022, section 462A.39, subdivision 2, is amended to read:
43.14 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
43.15 	meanings given.
43.16 	(b) "Eligible project area" means a home rule charter or statutory city located outside 
43.17 	of the a metropolitan area county as defined in section 473.121, subdivision 2 4, with a 
43.18 	population exceeding 500; a community that has a combined population of 1,500 residents 
43.19 	located within 15 miles of a home rule charter or statutory city located outside the a
43.20 	metropolitan area county as defined in section 473.121, subdivision 2 4; federally recognized 
43.21 	Tribal reservations; or an area served by a joint county-city economic development authority.
43.22 	(c) "Joint county-city economic development authority" means an economic development 
43.23 	authority formed under Laws 1988, chapter 516, section 1, as a joint partnership between 
43.24 	a city and county and excluding those established by the county only.
43.25 	(d) "Market rate residential rental properties" means properties that are rented at market 
43.26 	value, including new modular homes, new manufactured homes, and new manufactured 
43.27 	homes on leased land or in a manufactured home park, and may include rental developments 
43.28 	that have a portion of income-restricted units.
43.29 	(e) "Qualified expenditure" means expenditures for market rate residential rental 
43.30 	properties including acquisition of property; construction of improvements; and provisions 
43.31 	of loans or subsidies, grants, interest rate subsidies, public infrastructure, and related financing 
43.32 	costs.

44.1 	Sec. 17. Minnesota Statutes 2022, section 462A.39, subdivision 5, is amended to read:
44.2 		Subd. 5.Allocation. The amount of a grant or deferred loans may not exceed 25 50
44.3 	percent of the rental housing development project cost. The commissioner shall not award 
44.4 	a grant or deferred loans to a city an eligible project area without certification by the city
44.5 	eligible project area that the amount of the grant or deferred loans shall be matched by a 
44.6 	local unit of government, business, or nonprofit organization, or federally recognized Tribe,
44.7 	with $1 for every $2 provided in grant or deferred loans funds.

44.8 	Sec. 18. Laws 2021, First Special Session chapter 8, article 1, section 3, subdivision 11, 
44.9 	is amended to read:

44.10	Subd. 11.Affordable Rental Investment Fund
 		4,218,000
		4,218,000
	
44.11 	(a) This appropriation is for the affordable 
44.12 	rental investment fund program under 
44.13 	Minnesota Statutes, section 462A.21, 
44.14 	subdivision 8b, to finance the acquisition, 
44.15 	rehabilitation, replacement, and debt 
44.16 	restructuring of federally assisted rental 
44.17 	property and for making equity take-out loans 
44.18 	under Minnesota Statutes, section 462A.05, 
44.19 	subdivision 39.
44.20 	(b) The owner of federally assisted rental 
44.21 	property must agree to participate in the 
44.22 	applicable federally assisted housing program 
44.23 	and to extend any existing low-income 
44.24 	affordability restrictions on the housing for 
44.25 	the maximum term permitted.
44.26 	(c) The appropriation also may be used to 
44.27 	finance the acquisition, rehabilitation, and debt 
44.28 	restructuring of existing supportive housing 
44.29 	properties and naturally occurring affordable 
44.30 	housing as determined by the commissioner. 
44.31 	For purposes of this paragraph, "supportive 
44.32 	housing" means affordable rental housing with 
44.33 	links to services necessary for individuals, 
45.1 	youth, and families with children to maintain 
45.2 	housing stability.

45.3 	ARTICLE 5
45.4 	METROPOLITAN SALES TAX AND HOUSING AID

45.5 	Section 1. Minnesota Statutes 2022, section 297A.99, subdivision 1, is amended to read:
45.6 		Subdivision 1.Authorization; scope. (a) A political subdivision of this state may impose 
45.7 	a general sales tax (1) under section 297A.992, (2) under section 297A.993 297A.9925, (3)
45.8 	under section 297A.993, (4) if permitted by special law, or (4) (5) if the political subdivision 
45.9 	enacted and imposed the tax before January 1, 1982, and its predecessor provision.
45.10 	(b) This section governs the imposition of a general sales tax by the political subdivision. 
45.11 	The provisions of this section preempt the provisions of any special law:
45.12 	(1) enacted before June 2, 1997, or
45.13 	(2) enacted on or after June 2, 1997, that does not explicitly exempt the special law 
45.14 	provision from this section's rules by reference.
45.15 	(c) This section does not apply to or preempt a sales tax on motor vehicles. Beginning 
45.16 	July 1, 2019, no political subdivision may impose a special excise tax on motor vehicles 
45.17 	unless it is imposed under section 297A.993.
45.18 	(d) A political subdivision may not advertise or expend funds for the promotion of a 
45.19 	referendum to support imposing a local sales tax and may only spend funds related to 
45.20 	imposing a local sales tax to:
45.21 	(1) conduct the referendum;
45.22 	(2) disseminate information included in the resolution adopted under subdivision 2, but 
45.23 	only if the disseminated information includes a list of specific projects and the cost of each 
45.24 	individual project;
45.25 	(3) provide notice of, and conduct public forums at which proponents and opponents on 
45.26 	the merits of the referendum are given equal time to express their opinions on the merits of 
45.27 	the referendum;
45.28 	(4) provide facts and data on the impact of the proposed local sales tax on consumer 
45.29 	purchases; and
45.30 	(5) provide facts and data related to the individual programs and projects to be funded 
45.31 	with the local sales tax.

46.1 	Sec. 2. [297A.9925] METROPOLITAN REGION SALES AND USE TAX.
46.2 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
46.3 	the meanings given.
46.4 	(b) "Metropolitan Council" or "council" means the Metropolitan Council established by 
46.5 	section 473.123.
46.6 	(c) "Metropolitan county" has the meaning given in section 473.121, subdivision 4.
46.7 	(d) "Metropolitan sales tax" means the metropolitan region sales and use tax imposed 
46.8 	under this section.
46.9 		Subd. 2.Sales tax imposition; rate. Notwithstanding section 473.123, subdivision 1, 
46.10 	the Metropolitan Council must impose a metropolitan region sales and use tax at a rate of 
46.11 	0.25 percent on retail sales made in the metropolitan counties or to a destination in the 
46.12 	metropolitan counties.
46.13 		Subd. 3.Administration; collection; enforcement. Except as otherwise provided in 
46.14 	this section, the provisions of section 297A.99, subdivisions 4, and 6 to 12a, govern the 
46.15 	administration, collection, and enforcement of the metropolitan sales tax.
46.16 		Subd. 4.Distribution. Proceeds of the metropolitan sales tax are distributed:
46.17 	(1) 25 percent to the state rent assistance account under section 462A.2095;
46.18 	(2) 15 percent to the metropolitan city aid account in the housing assistance fund under 
46.19 	section 477A.37; and
46.20 	(3) 60 percent to the metropolitan county aid account in the housing assistance fund 
46.21 	under section 477A.37.

46.22 	EFFECTIVE DATE; APPLICATION. This section is effective for sales and purchases 
46.23 	made after June 30, 2023, and applies in the metropolitan counties, as defined by Minnesota 
46.24 	Statutes, section 473.121, subdivision 4.

46.25 	Sec. 3. [477A.35] LOCAL AFFORDABLE HOUSING AID.
46.26 		Subdivision 1.Purpose. The purpose of this section is to help metropolitan local 
46.27 	governments to develop and preserve affordable housing within their jurisdictions in order 
46.28 	to keep families from losing housing and to help those experiencing homelessness find 
46.29 	housing.
46.30 		Subd. 2.Definitions. For the purposes of this section, the following terms have the 
46.31 	meanings given:
47.1 	(1) "city distribution factor" means the number of households in a tier I city that are 
47.2 	cost-burdened divided by the total number of households that are cost-burdened in tier I 
47.3 	cities. The number of cost-burdened households shall be determined using the most recent 
47.4 	estimates or experimental estimates provided by the American Community Survey of the 
47.5 	United States Census Bureau as of May 1 of the aid calculation year;
47.6 	(2) "cost-burdened household" means a household in which gross rent is 30 percent or 
47.7 	more of household income or in which homeownership costs are 30 percent or more of 
47.8 	household income;
47.9 	(3) "county distribution factor" means the number of households in a county that are 
47.10 	cost-burdened divided by the total number of households in metropolitan counties that are 
47.11 	cost-burdened. The number of cost-burdened households shall be determined using the most 
47.12 	recent estimates or experimental estimates provided by the American Community Survey 
47.13 	of the United States Census Bureau as of May 1 of the aid calculation year;
47.14 	(4) "metropolitan area" has the meaning given in section 473.121, subdivision 2;
47.15 	(5) "metropolitan county" has the meaning given in section 473.121, subdivision 4;
47.16 	(6) "population" has the meaning given in section 477A.011, subdivision 3;
47.17 	(7) "tier I city" means a statutory or home rule charter city that is a city of the first, 
47.18 	second, or third class and is located in the metropolitan area; and
47.19 	(8) "tier II city" means a statutory or home rule charter city that is a city of the fourth 
47.20 	class and is located in the metropolitan area.
47.21 		Subd. 3.Distribution. (a) The commissioner of revenue shall calculate the amount of 
47.22 	aid to distribute to each county under this section as the sum of:
47.23 	(1) three percent of the total amount available to counties under this section; plus
47.24 	(2) 79 percent of the total amount available to counties under this section, multiplied by 
47.25 	the county distribution factor.
47.26 	(b) The commissioner of revenue shall calculate the amount of aid to distribute to each 
47.27 	tier I city under this section as:
47.28 	(1) the tier I city's city distribution factor; multiplied by
47.29 	(2) the total amount available to cities under this section.
47.30 		Subd. 4.Grants to tier II cities. (a) The commissioner of the Minnesota Housing Finance 
47.31 	Agency shall establish a program to award grants of at least $25,000 to tier II cities. The 
48.1 	agency shall develop program guidelines and criteria in consultation with the League of 
48.2 	Minnesota Cities.
48.3 	(b) Among comparable proposals, the agency shall prioritize grants to local governments 
48.4 	that have a higher proportion of cost-burdened households.
48.5 	(c) A grantee must use its grant on a qualifying project.
48.6 	(d) In making grants, the agency shall determine the circumstances, terms, and conditions 
48.7 	under which all or any portion thereof will be repaid and shall determine the appropriate 
48.8 	security should repayment be required. Any repaid funds shall be returned to the account 
48.9 	or accounts established pursuant to paragraph (e).
48.10 	(e) The agency shall establish a bookkeeping account or accounts in the housing 
48.11 	development fund for money distributed to the agency for grants under this subdivision. By 
48.12 	May 1 of each year, the Minnesota Housing Finance Agency shall report to the Department 
48.13 	of Revenue on the amount in the account or accounts.
48.14 		Subd. 5.Qualifying projects. (a) Qualifying projects shall include emergency rental 
48.15 	assistance for households earning less than 80 percent of area median income as determined 
48.16 	by the United States Department of Housing and Urban Development and projects designed 
48.17 	for the purpose of construction, acquisition, rehabilitation, demolition or removal of existing 
48.18 	structures, construction financing, permanent financing, interest rate reduction, refinancing, 
48.19 	and gap financing of housing to provide affordable housing to households that have incomes 
48.20 	which do not exceed, for homeownership projects, 115 percent of the greater of state or 
48.21 	area median income as determined by the United States Department of Housing and Urban 
48.22 	Development, and for rental housing projects, 80 percent of the greater of state or area 
48.23 	median income as determined by the United States Department of Housing and Urban 
48.24 	Development, except that the housing developed or rehabilitated with funds under this 
48.25 	section must be affordable to the local work force. Projects shall be prioritized that provide 
48.26 	affordable housing to households that have incomes which do not exceed, for homeownership 
48.27 	projects, 80 percent of the greater of state or area median income as determined by the 
48.28 	United States Department of Housing and Urban Development, and for rental housing 
48.29 	projects, 50 percent of the greater of state or area median income as determined by the 
48.30 	United States Department of Housing and Urban Development, except that the housing 
48.31 	developed or rehabilitated with funds under this section must be affordable to the local work 
48.32 	force.
48.33 	(b) Gap financing is either:
49.1 	(1) the difference between the costs of the property, including acquisition, demolition, 
49.2 	rehabilitation, and construction, and the market value of the property upon sale; or
49.3 	(2) the difference between the cost of the property and the amount the targeted household 
49.4 	can afford for housing, based on industry standards and practices.
49.5 	(c) If a grant under this section is used for demolition or removal of existing structures, 
49.6 	the cleared land must be used for the construction of housing to be owned or rented by 
49.7 	persons who meet the income limits of paragraph (a).
49.8 	(d) If an aid recipient uses the aid on a building containing more than four units, the loan 
49.9 	recipient must construct, convert, or otherwise adapt the building to include:
49.10 	(1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
49.11 	accessible units, as defined by section 1002 of the current State Building Code Accessibility 
49.12 	Provisions for Dwelling Units in Minnesota, and include at least one roll-in shower; and
49.13 	(2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
49.14 	sensory-accessible units that include:
49.15 	(A) soundproofing between shared walls for first and second floor units;
49.16 	(B) no florescent lighting in units and common areas;
49.17 	(C) low-fume paint;
49.18 	(D) low-chemical carpet; and
49.19 	(E) low-chemical carpet glue in units and common areas.
49.20 	Nothing in this paragraph will relieve a project funded by the agency from meeting other 
49.21 	applicable accessibility requirements.
49.22 		Subd. 6.Use of proceeds. (a) Any funds distributed under this section must be spent on 
49.23 	a qualifying project. Funds are considered spent on a qualifying project if:
49.24 	(1) a tier I city or county demonstrates to the Minnesota Housing Finance Agency that 
49.25 	the city or county cannot expend funds on a qualifying project by the deadline imposed by 
49.26 	paragraph (b) due to factors outside the control of the city or county; and
49.27 	(2) the funds are transferred to a local housing trust fund.
49.28 	Funds transferred to a local housing trust fund under this paragraph must be spent on a 
49.29 	project or household that meets the affordability requirements of subdivision 5, paragraph 
49.30 	(a).
50.1 	(b) Any unspent funds must be remitted to the Housing Finance Agency by December 
50.2 	31 in the third year following the year after the aid was received. The commissioner of the 
50.3 	Housing Finance Agency shall deposit any remitted funds under this paragraph into the 
50.4 	housing development fund. Funds deposited under this paragraph are appropriated to the 
50.5 	commissioner for use on the family homeless prevention and assistance program under 
50.6 	section 462A.204, the economic development and housing challenge program under section 
50.7 	462A.33, and the workforce and affordable homeownership development program under 
50.8 	section 462A.38.
50.9 		Subd. 7.Administration. (a) The commissioner of revenue must compute the amount 
50.10 	of aid payable to each tier I city and county under this section. Before computing the amount 
50.11 	of aid for counties and after receiving the report required by subdivision 4, paragraph (e), 
50.12 	the commissioner shall transfer from the funds available to counties to the Minnesota 
50.13 	Housing Finance Agency a sum such that the amount in the account or accounts established 
50.14 	under that paragraph equals ten percent of the total aid paid to tier I cities and counties under 
50.15 	this section in the previous year. By August 1 of each year, the commissioner must certify 
50.16 	the amount to be paid to each tier I city and county in the following year. The commissioner 
50.17 	must pay local affordable housing aid annually at the times provided in section 477A.015.
50.18 	(b) Beginning in 2025, tier I cities and counties shall submit a report annually, no later 
50.19 	than December 1 of each year, to the Minnesota Housing Finance Agency. The report must 
50.20 	include documentation of the location of any unspent funds distributed under this section 
50.21 	and of qualifying projects completed or planned with funds under this section. If a tier I 
50.22 	city or county fails to submit a report, if a tier I city or county fails to spend funds within 
50.23 	the timeline imposed under subdivision 6, paragraph (b), or if a tier I city or county uses 
50.24 	funds for a project that does not qualify under this section, the Minnesota Housing Finance 
50.25 	Agency shall notify the Department of Revenue and the cities and counties that must repay 
50.26 	funds under paragraph (c) by February 15 of the following year.
50.27 	(c) By May 15, after receiving notice from the Minnesota Housing Finance Agency, a 
50.28 	tier I city or county must repay to the commissioner of revenue funds the city or county 
50.29 	received under this section if the city or county:
50.30 	(1) fails to spend the funds within the time allowed under subdivision 6, paragraph (b);
50.31 	(2) spends the funds on anything other than a qualifying project; or
50.32 	(3) fails to submit a report documenting use of the funds.
51.1 	(d) The commissioner of revenue must stop distributing funds to a tier I city or county 
51.2 	that the Minnesota Housing Finance Agency reports to have, in three consecutive years, 
51.3 	failed to use funds, misused funds, or failed to report on its use of funds.
51.4 	(e) The commissioner may resume distributing funds to a tier I city or county to which 
51.5 	the commissioner has stopped payments once the Minnesota Housing Finance Agency 
51.6 	certifies that the city or county has submitted documentation of plans for a qualifying project.
51.7 	(f) By May 1, any funds repaid to the commissioner of revenue by cities under paragraph 
51.8 	(c) must be added to the overall distribution of aids certified under this section for tier I 
51.9 	cities in the following year. By May 1, any funds repaid to the commissioner of revenue by 
51.10 	counties under paragraph (c) must be added to the overall distribution of aids certified under 
51.11 	this section for counties in the following year.
51.12 		Subd. 8.County consultation with local governments. A county that receives funding 
51.13 	under this section shall regularly consult with the local governments in the jurisdictions of 
51.14 	which its qualifying projects are planned or located.

51.15 	EFFECTIVE DATE. This section is effective July 1, 2023.

51.16 	Sec. 4. [477A.37] HOUSING ASSISTANCE FUND.
51.17 		Subdivision 1.Fund established. A housing assistance fund is established in the state 
51.18 	treasury. The fund consists of money as provided under section 297A.9925, and any other 
51.19 	money donated, allotted, transferred, or otherwise provided to the fund.
51.20 		Subd. 2.Metropolitan county aid account; appropriation. (a) A metropolitan county 
51.21 	aid account is established in the housing assistance fund. The account consists of money as 
51.22 	provided under section 297A.9925, and any other money donated, allotted, transferred, or 
51.23 	otherwise provided to the account.
51.24 	(b) Money in the metropolitan county aid account is annually appropriated to the 
51.25 	commissioner of revenue for payments to counties as provided under Minnesota Statutes, 
51.26 	section 477A.35.
51.27 		Subd. 3.Metropolitan city aid account; appropriation. (a) A metropolitan city aid 
51.28 	account is established in the housing assistance fund. The account consists of money as 
51.29 	provided under section 297A.9925, and any other money donated, allotted, transferred, or 
51.30 	otherwise provided to the account.
52.1 	(b) Money in the metropolitan city aid account is annually appropriated to the 
52.2 	commissioner of revenue for payments to cities as provided under Minnesota Statutes, 
52.3 	section 477A.35.

52.4 	EFFECTIVE DATE. This section is effective July 1, 2023.

52.5 	ARTICLE 6
52.6 	MISCELLANEOUS

52.7 	Section 1. Minnesota Statutes 2022, section 82.75, subdivision 8, is amended to read:
52.8 		Subd. 8.Accrued interest. (a) Each broker shall maintain a pooled interest-bearing trust 
52.9 	account for deposit of client funds. The interest accruing on the trust account, less reasonable 
52.10 	transaction costs, must be paid to the commissioner of management and budget Minnesota 
52.11 	Housing Finance Agency for deposit in the housing trust fund account created under section 
52.12 	462A.201 unless otherwise specified pursuant to an expressed written agreement between 
52.13 	the parties to a transaction.
52.14 	(b) For an account created under paragraph (a), each broker shall direct the financial 
52.15 	institution to:
52.16 	(1) pay the interest, less reasonable transaction costs, computed in accordance with the 
52.17 	financial institution's standard accounting practice, at least quarterly, to the commissioner 
52.18 	of management and budget Minnesota Housing Finance Agency; and
52.19 	(2) send a statement to the commissioner of management and budget Minnesota Housing 
52.20 	Finance Agency showing the name of the broker for whom the payment is made, the rate 
52.21 	of interest applied, the amount of service charges deducted, and the account balance for the 
52.22 	period in which the report is made.
52.23 	The commissioner of management and budget Minnesota Housing Finance Agency shall 
52.24 	credit the amount collected under this subdivision to the housing trust fund account 
52.25 	established in section 462A.201.
52.26 	(c) The financial institution must promptly notify the commissioner agency if a draft 
52.27 	drawn on the account is dishonored. A draft is not dishonored if a stop payment order is 
52.28 	requested by an issuer who has a good faith defense to payment on the draft.
52.29 	(d) By January 15 of each year, the Minnesota Housing Finance Agency must report to 
52.30 	the chairs and ranking minority members of the legislative committees with jurisdiction 
52.31 	over housing finance and policy. The report must specify the amount of funds deposited 
52.32 	under this subdivision in the housing trust fund account established under section 462A.201 
53.1 	during the most recently concluded fiscal year. The report must also include a history of 
53.2 	deposits made under this section, in nominal dollar amounts and in the present value of 
53.3 	those amounts, calculated using the Consumer Price Index-All Items (United States city 
53.4 	average).

53.5 	EFFECTIVE DATE. This section is effective July 1, 2024.

53.6 	Sec. 2. Minnesota Statutes 2022, section 327C.095, subdivision 12, is amended to read:
53.7 		Subd. 12.Payment to the Minnesota manufactured home relocation trust fund. (a) 
53.8 	If a manufactured home owner is required to move due to the conversion of all or a portion 
53.9 	of a manufactured home park to another use, the closure of a park, or cessation of use of 
53.10 	the land as a manufactured home park, the manufactured park owner shall, upon the change 
53.11 	in use, pay to the commissioner of management and budget Minnesota Housing Finance 
53.12 	Agency for deposit in the Minnesota manufactured home relocation trust fund under section 
53.13 	462A.35, the lesser amount of the actual costs of moving or purchasing the manufactured 
53.14 	home approved by the neutral third party and paid by the Minnesota Housing Finance 
53.15 	Agency under subdivision 13, paragraph (a) or (e), or $3,250 for each single section 
53.16 	manufactured home, and $6,000 for each multisection manufactured home, for which a 
53.17 	manufactured home owner has made application for payment of relocation costs under 
53.18 	subdivision 13, paragraph (c). The manufactured home park owner shall make payments 
53.19 	required under this section to the Minnesota manufactured home relocation trust fund within 
53.20 	60 days of receipt of invoice from the neutral third party.
53.21 	(b) A manufactured home park owner is not required to make the payment prescribed 
53.22 	under paragraph (a), nor is a manufactured home owner entitled to compensation under 
53.23 	subdivision 13, paragraph (a) or (e), if:
53.24 	(1) the manufactured home park owner relocates the manufactured home owner to 
53.25 	another space in the manufactured home park or to another manufactured home park at the 
53.26 	park owner's expense;
53.27 	(2) the manufactured home owner is vacating the premises and has informed the 
53.28 	manufactured home park owner or manager of this prior to the mailing date of the closure 
53.29 	statement under subdivision 1;
53.30 	(3) a manufactured home owner has abandoned the manufactured home, or the 
53.31 	manufactured home owner is not current on the monthly lot rental, personal property taxes;
53.32 	(4) the manufactured home owner has a pending eviction action for nonpayment of lot 
53.33 	rental amount under section 327C.09, which was filed against the manufactured home owner 
54.1 	prior to the mailing date of the closure statement under subdivision 1, and the writ of recovery 
54.2 	has been ordered by the district court;
54.3 	(5) the conversion of all or a portion of a manufactured home park to another use, the 
54.4 	closure of a park, or cessation of use of the land as a manufactured home park is the result 
54.5 	of a taking or exercise of the power of eminent domain by a governmental entity or public 
54.6 	utility; or
54.7 	(6) the owner of the manufactured home is not a resident of the manufactured home 
54.8 	park, as defined in section 327C.015, subdivision 14; the owner of the manufactured home 
54.9 	is a resident, but came to reside in the manufactured home park after the mailing date of 
54.10 	the closure statement under subdivision 1; or the owner of the manufactured home has not 
54.11 	paid the $15 assessment when due under paragraph (c).
54.12 	(c) If the unencumbered fund balance in the manufactured home relocation trust fund 
54.13 	is less than $2,000,000 as of June 30 of each year, the commissioner of management and 
54.14 	budget Minnesota Housing Finance Agency shall assess each manufactured home park 
54.15 	owner by mail the total amount of $15 for each licensed lot in their park, payable on or 
54.16 	before December 15 of that year. Failure to notify and timely assess the manufactured home 
54.17 	park owner by July 31 of any year shall waive the assessment and payment obligations of 
54.18 	the manufactured home park owner for that year. Together with said assessment notice, 
54.19 	each year the commissioner of management and budget Minnesota Housing Finance Agency
54.20 	shall prepare and distribute to park owners a letter explaining whether funds are being 
54.21 	collected for that year, information about the collection, an invoice for all licensed lots, a 
54.22 	notice for distribution to the residents, and a sample form for the park owners to collect 
54.23 	information on which park residents and lots have been accounted for. In a font no smaller 
54.24 	than 14-point, the notice provided by management and budget the Minnesota Housing 
54.25 	Finance Agency for distribution to residents by the park owner will include the payment 
54.26 	deadline of October 31 and the following language: "THIS IS NOT AN OPTIONAL FEE. 
54.27 	IF YOU OWN A MANUFACTURED HOME ON A LOT YOU RENT IN A 
54.28 	MANUFACTURED HOME PARK, AND YOU RESIDE IN THAT HOME, YOU MUST 
54.29 	PAY WHEN PROVIDED NOTICE." If assessed under this paragraph, the park owner may 
54.30 	recoup the cost of the $15 assessment as a lump sum or as a monthly fee of no more than 
54.31 	$1.25 collected from park residents together with monthly lot rent as provided in section 
54.32 	327C.03, subdivision 6. If, by September 15, a park owner provides the notice to residents 
54.33 	for the $15 lump sum, a park owner may adjust payment for lots in their park that are vacant 
54.34 	or otherwise not eligible for contribution to the trust fund under section 327C.095, subdivision 
54.35 	12, paragraph (b), and for park residents who have not paid the $15 assessment when due 
55.1 	to the park owner by October 31, and deduct from the assessment accordingly. The 
55.2 	commissioner of management and budget Minnesota Housing Finance Agency shall deposit 
55.3 	any payments in the Minnesota manufactured home relocation trust fund and provide to the 
55.4 	Minnesota Housing Finance Agency by December 31, a maintain an annual record for each 
55.5 	manufactured home park of the amount received for that park and the number of deductions 
55.6 	made for each of the following reasons: vacant lots, ineligible lots, and uncollected fees.
55.7 	(d) This subdivision and subdivision 13, paragraph (c), clause (5), are enforceable by 
55.8 	the neutral third party, on behalf of the Minnesota Housing Finance Agency, or by action 
55.9 	in a court of appropriate jurisdiction. The court may award a prevailing party reasonable 
55.10 	attorney fees, court costs, and disbursements.

55.11 	EFFECTIVE DATE. This section is effective July 1, 2024.

55.12 	Sec. 3. Minnesota Statutes 2022, section 327C.095, subdivision 13, is amended to read:
55.13 		Subd. 13.Change in use, relocation expenses; payments by park owner. (a) If a 
55.14 	manufactured home owner is required to relocate due to the conversion of all or a portion 
55.15 	of a manufactured home park to another use, the closure of a manufactured home park, or 
55.16 	cessation of use of the land as a manufactured home park under subdivision 1, and the 
55.17 	manufactured home owner complies with the requirements of this section, the manufactured 
55.18 	home owner is entitled to payment from the Minnesota manufactured home relocation trust 
55.19 	fund equal to the manufactured home owner's actual relocation costs for relocating the 
55.20 	manufactured home to a new location within a 50-mile radius of the park that is being closed, 
55.21 	up to a maximum of $7,000 for a single-section and $12,500 for a multisection manufactured 
55.22 	home. The actual relocation costs must include the reasonable cost of taking down, moving, 
55.23 	and setting up the manufactured home, including equipment rental, utility connection and 
55.24 	disconnection charges, minor repairs, modifications necessary for transportation of the 
55.25 	home, necessary moving permits and insurance, moving costs for any appurtenances, which 
55.26 	meet applicable local, state, and federal building and construction codes.
55.27 	(b) A manufactured home owner is not entitled to compensation under paragraph (a) if 
55.28 	the manufactured home park owner is not required to make a payment to the Minnesota 
55.29 	manufactured home relocation trust fund under subdivision 12, paragraph (b).
55.30 	(c) Except as provided in paragraph (e), in order to obtain payment from the Minnesota 
55.31 	manufactured home relocation trust fund, the manufactured home owner shall submit to the 
55.32 	neutral third party and the Minnesota Housing Finance Agency, with a copy to the park 
55.33 	owner, an application for payment, which includes:
56.1 	(1) a copy of the closure statement under subdivision 1;
56.2 	(2) a copy of the contract with a moving or towing contractor, which includes the 
56.3 	relocation costs for relocating the manufactured home;
56.4 	(3) a statement with supporting materials of any additional relocation costs as outlined 
56.5 	in subdivision 1;
56.6 	(4) a statement certifying that none of the exceptions to receipt of compensation under 
56.7 	subdivision 12, paragraph (b), apply to the manufactured home owner;
56.8 	(5) a statement from the manufactured park owner that the lot rental is current and that 
56.9 	the annual $15 payment to the Minnesota manufactured home relocation trust fund has been 
56.10 	paid when due; and
56.11 	(6) a statement from the county where the manufactured home is located certifying that 
56.12 	personal property taxes for the manufactured home are paid through the end of that year.
56.13 	(d) The neutral third party shall promptly process all payments for completed applications 
56.14 	within 14 days. If the neutral third party has acted reasonably and does not approve or deny 
56.15 	payment within 45 days after receipt of the information set forth in paragraph (c), the 
56.16 	payment is deemed approved. Upon approval and request by the neutral third party, the 
56.17 	Minnesota Housing Finance Agency shall issue two checks in equal amount for 50 percent 
56.18 	of the contract price payable to the mover and towing contractor for relocating the 
56.19 	manufactured home in the amount of the actual relocation cost, plus a check to the home 
56.20 	owner for additional certified costs associated with third-party vendors, that were necessary 
56.21 	in relocating the manufactured home. The moving or towing contractor shall receive 50 
56.22 	percent upon execution of the contract and 50 percent upon completion of the relocation 
56.23 	and approval by the manufactured home owner. The moving or towing contractor may not 
56.24 	apply the funds to any other purpose other than relocation of the manufactured home as 
56.25 	provided in the contract. A copy of the approval must be forwarded by the neutral third 
56.26 	party to the park owner with an invoice for payment of the amount specified in subdivision 
56.27 	12, paragraph (a).
56.28 	(e) In lieu of collecting a relocation payment from the Minnesota manufactured home 
56.29 	relocation trust fund under paragraph (a), the manufactured home owner may collect an 
56.30 	amount from the fund after reasonable efforts to relocate the manufactured home have failed 
56.31 	due to the age or condition of the manufactured home, or because there are no manufactured 
56.32 	home parks willing or able to accept the manufactured home within a 25-mile radius. A 
56.33 	manufactured home owner may tender title of the manufactured home in the manufactured 
56.34 	home park to the manufactured home park owner, and collect an amount to be determined 
57.1 	by an independent appraisal. The appraiser must be agreed to by both the manufactured 
57.2 	home park owner and the manufactured home owner. If the appraised market value cannot 
57.3 	be determined, the tax market value, averaged over a period of five years, can be used as a 
57.4 	substitute. The maximum amount that may be reimbursed under the fund is $8,000 for a 
57.5 	single-section and $14,500 for a multisection manufactured home. The minimum amount 
57.6 	that may be reimbursed under the fund is $2,000 for a single section and $4,000 for a 
57.7 	multisection manufactured home. The manufactured home owner shall deliver to the 
57.8 	manufactured home park owner the current certificate of title to the manufactured home 
57.9 	duly endorsed by the owner of record, and valid releases of all liens shown on the certificate 
57.10 	of title, and a statement from the county where the manufactured home is located evidencing 
57.11 	that the personal property taxes have been paid. The manufactured home owner's application 
57.12 	for funds under this paragraph must include a document certifying that the manufactured 
57.13 	home cannot be relocated, that the lot rental is current, that the annual $15 payments to the 
57.14 	Minnesota manufactured home relocation trust fund have been paid when due, that the 
57.15 	manufactured home owner has chosen to tender title under this section, and that the park 
57.16 	owner agrees to make a payment to the commissioner of management and budget Minnesota 
57.17 	Housing Finance Agency in the amount established in subdivision 12, paragraph (a), less 
57.18 	any documented costs submitted to the neutral third party, required for demolition and 
57.19 	removal of the home, and any debris or refuse left on the lot, not to exceed $1,500. The 
57.20 	manufactured home owner must also provide a copy of the certificate of title endorsed by 
57.21 	the owner of record, and certify to the neutral third party, with a copy to the park owner, 
57.22 	that none of the exceptions to receipt of compensation under subdivision 12, paragraph (b), 
57.23 	clauses (1) to (6), apply to the manufactured home owner, and that the home owner will 
57.24 	vacate the home within 60 days after receipt of payment or the date of park closure, 
57.25 	whichever is earlier, provided that the monthly lot rent is kept current.
57.26 	(f) Notwithstanding paragraph (a), the manufactured home owner's compensation for 
57.27 	relocation costs from the fund under section 462A.35, is the greater of the amount provided 
57.28 	under this subdivision, or the amount under the local ordinance in effect on May 26, 2007, 
57.29 	that is applicable to the manufactured home owner. Nothing in this paragraph is intended 
57.30 	to increase the liability of the park owner.
57.31 	(g) Neither the neutral third party nor the Minnesota Housing Finance Agency shall be 
57.32 	liable to any person for recovery if the funds in the Minnesota manufactured home relocation 
57.33 	trust fund are insufficient to pay the amounts claimed. The Minnesota Housing Finance 
57.34 	Agency shall keep a record of the time and date of its approval of payment to a claimant.
58.1 	(h)(1) By October 15, 2019, the Minnesota Housing Finance Agency shall post on its 
58.2 	website and report to the chairs of the senate Finance Committee and house of representatives 
58.3 	Ways and Means Committee on the Minnesota manufactured home relocation trust fund, 
58.4 	including the account balance, payments to claimants, the amount of any advances to the 
58.5 	fund, the amount of any insufficiencies encountered during the previous calendar year, and 
58.6 	any itemized administrative charges or expenses deducted from the trust fund balance. If 
58.7 	sufficient funds become available, the Minnesota Housing Finance Agency shall pay the 
58.8 	manufactured home owner whose unpaid claim is the earliest by time and date of approval.
58.9 	(2) Beginning in 2019, the Minnesota Housing Finance Agency shall post on its website 
58.10 	and report to the chairs of the senate Finance Committee and house of representatives Ways 
58.11 	and Means Committee by October 15 of each year on the Minnesota manufactured home 
58.12 	relocation trust fund, including the aggregate account balance, the aggregate assessment 
58.13 	payments received, summary information regarding each closed park including the total 
58.14 	payments to claimants and payments received from each closed park, the amount of any 
58.15 	advances to the fund, the amount of any insufficiencies encountered during the previous 
58.16 	fiscal year, reports of neutral third parties provided pursuant to subdivision 4, and any 
58.17 	itemized administrative charges or expenses deducted from the trust fund balance, all of 
58.18 	which should be reconciled to the previous year's trust fund balance. If sufficient funds 
58.19 	become available, the Minnesota Housing Finance Agency shall pay the manufactured home 
58.20 	owner whose unpaid claim is the earliest by time and date of approval.

58.21 	EFFECTIVE DATE. This section is effective July 1, 2024.

58.22 	Sec. 4. Minnesota Statutes 2022, section 327C.095, subdivision 16, is amended to read:
58.23 		Subd. 16.Reporting of licensed manufactured home parks. The Department of Health 
58.24 	or, if applicable, local units of government that have entered into a delegation of authority 
58.25 	agreement with the Department of Health as provided in section 145A.07 shall provide, by 
58.26 	March 31 of each year, a list of names and addresses of the manufactured home parks 
58.27 	licensed in the previous year, and for each manufactured home park, the current licensed 
58.28 	owner, the owner's address, the number of licensed manufactured home lots, and other data 
58.29 	as they may request for the Department of Management and Budget Minnesota Housing 
58.30 	Finance Agency to invoice each licensed manufactured home park in Minnesota.

58.31 	EFFECTIVE DATE. This section is effective July 1, 2024.

59.1 	Sec. 5. Minnesota Statutes 2022, section 462.357, subdivision 1, is amended to read:
59.2 		Subdivision 1.Authority for zoning. For the purpose of promoting the public health, 
59.3 	safety, morals, and general welfare, a municipality may by ordinance regulate on the earth's 
59.4 	surface, in the air space above the surface, and in subsurface areas, the location, height, 
59.5 	width, bulk, type of foundation, number of stories, size of buildings and other structures, 
59.6 	the percentage of lot which may be occupied, the size of yards and other open spaces, the 
59.7 	density and distribution of population, the uses of buildings and structures for trade, industry, 
59.8 	residence, recreation, public activities, or other purposes, and the uses of land for trade, 
59.9 	industry, residence, recreation, agriculture, forestry, soil conservation, water supply 
59.10 	conservation, conservation of shorelands, as defined in sections 103F.201 to 103F.221, 
59.11 	access to direct sunlight for solar energy systems as defined in section 216C.06, flood control 
59.12 	or other purposes, and may establish standards and procedures regulating such uses. To 
59.13 	accomplish these purposes, official controls may include provision for purchase of 
59.14 	development rights by the governing body in the form of conservation easements under 
59.15 	chapter 84C in areas where the governing body considers preservation desirable and the 
59.16 	transfer of development rights from those areas to areas the governing body considers more 
59.17 	appropriate for development. No regulation may prohibit earth sheltered construction as 
59.18 	defined in section 216C.06, subdivision 14, relocated residential buildings, or manufactured 
59.19 	homes built in conformance with sections 327.31 to 327.35, or industrialized or modular 
59.20 	buildings for residential use built in conformance with Minnesota Rules, chapter 1361, that 
59.21 	comply with all other zoning ordinances promulgated pursuant to this section. The regulations 
59.22 	may divide the surface, above surface, and subsurface areas of the municipality into districts 
59.23 	or zones of suitable numbers, shape, and area. The regulations shall be uniform for each 
59.24 	class or kind of buildings, structures, or land and for each class or kind of use throughout 
59.25 	such district, but the regulations in one district may differ from those in other districts. The 
59.26 	ordinance embodying these regulations shall be known as the zoning ordinance and shall 
59.27 	consist of text and maps. A city may by ordinance extend the application of its zoning 
59.28 	regulations to unincorporated territory located within two miles of its limits in any direction, 
59.29 	but not in a county or town which has adopted zoning regulations; provided that where two 
59.30 	or more noncontiguous municipalities have boundaries less than four miles apart, each is 
59.31 	authorized to control the zoning of land on its side of a line equidistant between the two 
59.32 	noncontiguous municipalities unless a town or county in the affected area has adopted 
59.33 	zoning regulations. Any city may thereafter enforce such regulations in the area to the same 
59.34 	extent as if such property were situated within its corporate limits, until the county or town 
59.35 	board adopts a comprehensive zoning regulation which includes the area.

60.1 	Sec. 6. Minnesota Statutes 2022, section 469.002, subdivision 12, is amended to read:
60.2 		Subd. 12.Project. "Project" means a housing project, a housing development project, 
60.3 	a workforce housing project, or a redevelopment project, or any combination of those 
60.4 	projects. The term "project" also may be applied to all real and personal property, assets, 
60.5 	cash, or other funds, held or used in connection with the development or operation of the 
60.6 	project. The term "project" also includes an interest reduction program authorized by section 
60.7 	469.012, subdivision 7.

60.8 	Sec. 7. Minnesota Statutes 2022, section 469.002, is amended by adding a subdivision to 
60.9 	read:
60.10 		Subd. 25.Workforce housing project. (a) "Workforce housing project" means any 
60.11 	work or undertaking by an authority located in an eligible project area to develop market 
60.12 	rate residential rental properties, as defined in section 462A.39, subdivision 2, paragraph 
60.13 	(d), or single-family housing, as defined under section 462C.02, subdivision 4.
60.14 	(b) For the purposes of this paragraph, "eligible project area" means an area that meets 
60.15 	the criteria under section 462A.39, subdivisions 2, paragraph (b), and 4, paragraph (a).

60.16 	Sec. 8. Minnesota Statutes 2022, section 473.145, is amended to read:
60.17 	473.145 DEVELOPMENT GUIDE.
60.18 	(a) The Metropolitan Council shall prepare and adopt, after appropriate study and such 
60.19 	public hearings as may be necessary, a comprehensive development guide for the 
60.20 	metropolitan area. It shall consist of a compilation of policy statements, goals, standards, 
60.21 	programs, and maps prescribing guides for the orderly and economical development, public 
60.22 	and private, of the metropolitan area. The comprehensive development guide shall recognize 
60.23 	and encompass physical, social, or economic needs of the metropolitan area and those future 
60.24 	developments which will have an impact on the entire area including but not limited to such 
60.25 	matters as land use, parks and open space land needs, the necessity for and location of 
60.26 	airports, highways, transit facilities, public hospitals, libraries, schools, and other public 
60.27 	buildings.
60.28 	(b) The council's adoption and amendment of the comprehensive development guide 
60.29 	and its adoption and amendment of metropolitan system plans as defined in section 473.852, 
60.30 	subdivision 8, other policy plans, and metropolitan system statements under this chapter 
60.31 	shall not constitute conduct that causes or is likely to cause pollution, impairment, or 
61.1 	destruction as defined under section 116B.02, subdivision 5, or governmental action as 
61.2 	defined under section 116D.04, subdivision 1a, paragraph (d).

61.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

61.4 	Sec. 9. Minnesota Statutes 2022, section 500.20, subdivision 2a, is amended to read:
61.5 		Subd. 2a.Restriction of duration of condition. Except for any right to reenter or to 
61.6 	repossess as provided in subdivision 3, all private covenants, conditions, or restrictions 
61.7 	created by which the title or use of real property is affected, cease to be valid and operative 
61.8 	30 years after the date of the deed, or other instrument, or the date of the probate of the will, 
61.9 	creating them, and may be disregarded.
61.10 	This subdivision does not apply to covenants, conditions, or restrictions:
61.11 	(1) that were created before August 1, 1959, under which a person who owns or has an 
61.12 	interest in real property against which the covenants, conditions, or restrictions have been 
61.13 	filed claims a benefit of the covenant, condition, or restriction if the person records in the 
61.14 	office of the county recorder or files in the office of the registrar of titles in the county in 
61.15 	which the real estate affected is located, on or before March 30, 1989, a notice sworn to by 
61.16 	the claimant or the claimant's agent or attorney: setting forth the name of the claimant; 
61.17 	describing the real estate affected; describing the deed, instrument, or will creating the 
61.18 	covenant, condition, or restriction; and stating that the covenant, condition, or restriction is 
61.19 	not nominal and may not be disregarded under subdivision 1;
61.20 	(2) that are created by the declaration, bylaws, floor plans, or condominium plat of a 
61.21 	condominium created before August 1, 1980, under chapter 515, or created on or after 
61.22 	August 1, 1980, under chapter 515A or 515B, or by any amendments of the declaration, 
61.23 	bylaws, floor plans, or condominium plat;
61.24 	(3) that are created by the articles of incorporation, bylaws, or proprietary leases of a 
61.25 	cooperative association formed under chapter 308A;
61.26 	(4) that are created by a declaration or other instrument that authorizes and empowers 
61.27 	a corporation of which the qualification for being a stockholder or member is ownership of 
61.28 	certain parcels of real estate, to hold title to common real estate for the benefit of the parcels;
61.29 	(5) that are created by a deed, declaration, reservation, or other instrument by which one 
61.30 	or more portions of a building, set of connecting or adjacent buildings, or complex or project 
61.31 	of related buildings and structures share support, structural components, ingress and egress, 
61.32 	or utility access with another portion or portions;
62.1 	(6) that were created after July 31, 1959, under which a person who owns or has an 
62.2 	interest in real estate against which covenants, conditions, or restrictions have been filed 
62.3 	claims a benefit of the covenants, conditions, or restrictions if the person records in the 
62.4 	office of the county recorder or files in the office of the registrar of titles in the county in 
62.5 	which the real estate affected is located during the period commencing on the 28th 
62.6 	anniversary of the date of the deed or instrument, or the date of the probate of the will, 
62.7 	creating them and ending on the 30th anniversary, a notice as described in clause (1); or
62.8 	(7) that are created by a declaration or bylaws of a common interest community created 
62.9 	under or governed by chapter 515B, or by any amendments thereto.; or
62.10 	(8) that are created by a declaration or other instrument required by a government entity 
62.11 	related to affordable housing.
62.12 	A notice filed in accordance with clause (1) or (6) delays application of this subdivision 
62.13 	to the covenants, conditions, or restrictions for a period ending on the later of seven years 
62.14 	after the date of filing of the notice, or until final judgment is entered in an action to determine 
62.15 	the validity of the covenants, conditions, or restrictions, provided in the case of an action 
62.16 	the summons and complaint must be served and a notice of lis pendens must be recorded 
62.17 	in the office of the county recorder or filed in the office of the registrar of titles in each 
62.18 	county in which the real estate affected is located within seven years after the date of 
62.19 	recording or filing of the notice under clause (1) or (6).
62.20 	County recorders and registrars of titles shall accept for recording or filing a notice 
62.21 	conforming with this subdivision and charge a fee corresponding with the fee charged for 
62.22 	filing a notice of lis pendens of similar length. The notice may be discharged in the same 
62.23 	manner as a notice of lis pendens and when discharged, together with the information 
62.24 	included with it, ceases to constitute either actual or constructive notice.

62.25 	Sec. 10. Laws 2023, chapter 20, section 1, is amended to read:
62.26 	Section 1. APPROPRIATION.
 62.27 	(a) $50,000,000 in fiscal year 2023 is appropriated from the general fund to the Housing 
62.28 	Finance Agency for transfer to the housing development fund for the family homeless 
62.29 	prevention and assistance program under Minnesota Statutes, section 462A.204. This 
62.30 	appropriation is onetime. Notwithstanding procurement provisions outlined in Minnesota 
62.31 	Statutes, section 16C.06, subdivisions 1, 2, and 6, the agency may award grants to existing 
62.32 	program grantees. The agency shall make best efforts to spend the appropriation by June 
62.33 	30, 2024.
63.1 	(b) Notwithstanding Minnesota Statutes, section 462A.204, subdivision 5, qualified 
63.2 	families may receive more than 24 months of rental assistance.
63.3 	(c) By January 15, 2024, and 60 days after the appropriation in paragraph (a) has been 
63.4 	expended, the commissioner shall report to the chairs and ranking minority members of the 
63.5 	legislative committees of housing finance the following:
63.6 	(1) the number of applicants and the total amount receiving rental assistance under this 
63.7 	section;
63.8 	(2) the geographic distribution of the rental assistance; and
63.9 	(3) for the January 15, 2024, report, the remaining balance of the appropriation in this 
63.10 	section.
63.11 	(d) Notwithstanding Minnesota Statutes, section 462A.204, subdivision 3, a 
63.12 	community-based nonprofit organization without a sponsoring resolution may apply for 
63.13 	and receive grants outside the metropolitan area.
63.14 	(e) If the agency determines that the metropolitan area is in need of additional support 
63.15 	to serve households that are homeless or at risk of homelessness, the agency may grant 
63.16 	funds to entities other than counties in the metropolitan area, including but not limited to 
63.17 	nonprofit organizations.
63.18 	(f) In circumstances where more than one grantee operates in a given geographic area, 
63.19 	grantees may work with either an advisory committee as required under Minnesota Statutes, 
63.20 	section 462A.204, subdivision 6, or the local Continuum of Care and are not required to 
63.21 	meet the requirements of Minnesota Statutes, section 462A.204, subdivision 4.

63.22 	Sec. 11. TRANSITION OF RESPONSIBILITIES TO THE MINNESOTA HOUSING 
63.23 	FINANCE AGENCY.
63.24 	A payment submitted to the commissioner of management and budget on or before July 
63.25 	1, 2025, for deposit into the housing trust fund account created under Minnesota Statutes, 
63.26 	section 462A.201, or into the Minnesota manufactured home relocation trust fund established 
63.27 	under Minnesota Statutes, section 462A.35, must be deposited by the commissioner of 
63.28 	management and budget in the housing trust fund account created under Minnesota Statutes, 
63.29 	section 462A.201, or in the Minnesota manufactured home relocation trust fund. The 
63.30 	commissioner of management and budget must notify the person who submitted the payment 
63.31 	to the commissioner of management and budget that the payment was received, documented, 
63.32 	and has been or will be deposited into the trust fund; that future payments must be submitted 
63.33 	to the Minnesota Housing Finance Agency rather than the commissioner of management 
64.1 	and budget; and that payments submitted to the commissioner of management and budget 
64.2 	after July 1, 2025, will not be accepted.

64.3 	EFFECTIVE DATE. This section is effective July 1, 2024.

64.4 	Sec. 12. REQUIRING CITIES TO REPORT BUILDINGS THAT DO NOT HAVE 
64.5 	SPRINKLER SYSTEMS.
 64.6 	(a) A city of the first or second class shall provide to the state fire marshal a list by June 
64.7 	20, 2024, and an updated list by June 30, 2027, and June 30, 2032, of each residential 
64.8 	building in the city that:
64.9 	(1) has at least one story used for human occupancy that is 75 feet or more above the 
64.10 	lowest level of fire department vehicle access;
64.11 	(2) was not subject to a requirement to include a sprinkler system at the time the building 
64.12 	was constructed; and
64.13 	(3) has not been retrofitted with a sprinkler system.
64.14 	(b) The state fire marshal shall submit the lists within 60 days of the due dates under 
64.15 	paragraph (a) to the chairs and ranking minority members of the legislative committees with 
64.16 	jurisdiction over the State Building Code and the State Fire Code.

64.17 	Sec. 13. LEGISLATIVE TASK FORCE; EXPEDITING RENTAL ASSISTANCE.
 64.18 		Subdivision 1.Creation; duties. (a) A legislative task force is created to study how to 
64.19 	expedite both the processing of applications for rental assistance and for emergency rental 
64.20 	assistance and the distribution of rental assistance funds to landlords, in order to identify 
64.21 	what processes, procedures, and technological or personnel resources would be necessary 
64.22 	to enable the state or county agency responsible for administering rental assistance funds 
64.23 	to meet the following goals:
64.24 	(1) within two weeks of receiving a completed application for rental assistance, make 
64.25 	and issue a determination of the application; and
64.26 	(2) within 30 days of receiving a completed application for rental assistance, issue 
64.27 	payment on an approved rental application to the landlord.
64.28 	(b) The task force shall identify and consult with renters facing eviction who have 
64.29 	experienced or been harmed by the delays in processing applications and delivering rent 
64.30 	payments to landlords.
65.1 		Subd. 2.Membership. (a) The task force shall consist of 12 members, appointed as 
65.2 	follows:
65.3 	(1) the commissioner of the Housing Finance Agency or a designee;
65.4 	(2) one member appointed by the Minnesota Multi Housing Association;
65.5 	(3) one member appointed by Mid-Minnesota Legal Aid;
65.6 	(4) one member appointed by HOME Line;
65.7 	(5) one member appointed by United Way;
65.8 	(6) one member appointed by The Salvation Army;
65.9 	(7) four county administrators of emergency rental assistance, including two working 
65.10 	for metropolitan counties, as defined by Minnesota Statutes, section 473.121, subdivision 
65.11 	4, and two working for nonmetropolitan counties, with one member from each category 
65.12 	appointed by the speaker of the house of representatives, and one from each category 
65.13 	appointed by the senate majority leader;
65.14 	(8) one member from the house of representatives appointed by the speaker of the house; 
65.15 	and
65.16 	(9) one member from the senate, appointed by the senate majority leader.
65.17 	(b) Appointments to the task force must be made by August 15, 2023.
65.18 		Subd. 3.Compensation. Public members of the task force may be compensated as 
65.19 	provided by Minnesota Statutes, section 15.059, subdivision 3.
65.20 		Subd. 4.Officers; meetings. (a) The first meetings of the task force shall be cochaired 
65.21 	by the task force member from the house of representatives and the task force member from 
65.22 	the senate. The task force shall elect a chair and vice-chair at the first meeting who shall 
65.23 	preside at the remainder of the task force meetings. The task force may elect other officers 
65.24 	as necessary.
65.25 	(b) The task force shall meet at least monthly. The Legislative Coordinating Commission 
65.26 	shall convene the first meeting by September 1, 2023.
65.27 	(c) Meetings of the task force are subject to the Minnesota Open Meeting Law under 
65.28 	Minnesota Statutes, chapter 13D.
65.29 		Subd. 5.Report required. The task force shall submit a final report by February 15, 
65.30 	2024, to the chairs and ranking minority members of the legislative committees with 
65.31 	jurisdiction over housing finance and policy.
66.1 		Subd. 6.Expiration. The task force expires upon submission of the final report in 
66.2 	subdivision 5 or February 28, 2024, whichever is later.

66.3 	EFFECTIVE DATE. This section is effective the day following final enactment and 
66.4 	expires March 1, 2024.

66.5 	Sec. 14. STUDY ON EXPEDITING RENTAL ASSISTANCE PAYMENTS.
 66.6 	(a) Management Analysis and Development (MAD) in Minnesota Management and 
66.7 	Budget shall conduct an analytical study to determine how to expedite both the processing 
66.8 	of applications for rental assistance and for emergency rental assistance and the distribution 
66.9 	of rental assistance funds to landlords, in order to identify what processes, procedures, and 
66.10 	technological or personnel resources would be necessary to enable the state or county agency 
66.11 	responsible for administering rental assistance funds to meet the following goals:
66.12 	(1) within two weeks of receiving a completed application for rental assistance, make 
66.13 	and issue a determination of the application; and
66.14 	(2) within 30 days of receiving a completed application for rental assistance, issue 
66.15 	payment on an approved rental application to the landlord.
66.16 	(b) By December 1, 2023, MAD shall conduct the study and prepare an informal report 
66.17 	to be delivered to the legislative task force on expediting rental assistance payments. By 
66.18 	February 15, 2024, MAD shall submit a formal report to the chairs and ranking minority 
66.19 	members of the legislative committees with jurisdiction over housing finance and policy.