1.1 	A bill for an act
1.2 	relating to state government; establishing budget for Minnesota Housing Finance 
1.3 	Agency; making policy, finance, and technical changes to housing provisions; 
1.4 	expanding and establishing certain homeownership, manufactured home, and rent 
1.5 	assistance programs; expanding requirements and uses of housing infrastructure 
1.6 	bonds; establishing metropolitan region sales tax; establishing local affordable 
1.7 	housing aid; requiring reports; appropriating money;amending Minnesota Statutes 
1.8 	2022, sections 82.75, subdivision 8; 297A.99, subdivision 1; 327C.095, subdivisions 
1.9 	12, 13, 16; 327C.096; 462.357, subdivision 1; 462A.05, subdivision 14, by adding 
1.10 	subdivisions; 462A.07, by adding a subdivision; 462A.2035, subdivision 1b; 
1.11 	462A.204, subdivision 3; 462A.21, subdivision 3b; 462A.22, subdivision 1; 
1.12 	462A.33, subdivision 2, by adding a subdivision; 462A.36, subdivision 4, by 
1.13 	adding a subdivision; 462A.37, subdivisions 1, 2, 4, 5, by adding a subdivision; 
1.14 	462A.38, subdivision 1; 462A.39, subdivisions 2, 5; 469.002, subdivision 12, by 
1.15 	adding a subdivision; 500.20, subdivision 2a; Laws 2021, First Special Session 
1.16 	chapter 8, article 1, section 3, subdivision 11; Laws 2023, chapter 20, section 1; 
1.17 	proposing coding for new law in Minnesota Statutes, chapters 297A; 327C; 462A; 
1.18 	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
 	$
	792,098,000
	$
	273,298,000
	
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
 		60,425,000
		60,425,000
	
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) Of this amount, $6,425,000 each year shall 
2.22 	be made available during the first 11 months 
2.23 	of the fiscal year exclusively for housing 
2.24 	projects for American Indians. Any funds not 
2.25 	committed to housing projects for American 
2.26 	Indians within the annual consolidated request 
2.27 	for funding processes may be available for 
2.28 	any eligible activity under Minnesota Statutes, 
2.29 	sections 462A.33 and 462A.07, subdivision 
2.30 	14.
2.31 	(c) Of the amount in the first year, $5,000,000 
2.32 	is for a grant to Urban Homeworks to expand 
2.33 	initiatives pertaining to deeply affordable 
2.34 	homeownership in Minneapolis neighborhoods 
3.1 	with over 40 percent of residents identifying 
3.2 	as Black, Indigenous, or People of Color and 
3.3 	at least 40 percent of residents making less 
3.4 	than 50 percent of the area median income.  
3.5 	The grant is to be used for acquisition, 
3.6 	rehabilitation, and construction of homes to 
3.7 	be sold to households with incomes of 50 to 
3.8 	60 percent of the area median income. This is 
3.9 	a onetime appropriation, and is available until 
3.10 	June 30, 2027. By December 15 each year 
3.11 	until 2027, Urban Homeworks must submit a 
3.12 	report to the chairs and ranking minority 
3.13 	members of the legislative committees having 
3.14 	jurisdiction over housing finance and policy. 
3.15 	The report must include the amount used for 
3.16 	(1) acquisition, (2) rehabilitation, and (3) 
3.17 	construction of housing units, along with the 
3.18 	number of housing units acquired, 
3.19 	rehabilitated, or constructed, and the amount 
3.20 	of the appropriation that has been spent. If any 
3.21 	home was sold or transferred within the year 
3.22 	covered by the report, Urban Homeworks must 
3.23 	include the price at which the home was sold, 
3.24 	as well as how much was spent to complete 
3.25 	the project before sale.
3.26 	(d) Of the amount in the first year, $2,000,000 
3.27 	is for a grant to Rondo Community Land 
3.28 	Trust. This is a onetime appropriation.
3.29 	(e) The base for this program in fiscal year 
3.30 	2026 and beyond is $12,925,000.

3.31	Subd. 3.Workforce Housing Development
 		19,500,000
		19,500,000
	
3.32 	(a) This appropriation is for the Greater 
3.33 	Minnesota workforce housing development 
3.34 	program under Minnesota Statutes, section 
3.35 	462A.39. If requested by the applicant and 
4.1 	approved by the agency, funded properties 
4.2 	may include a portion of income and rent 
4.3 	restricted units. Funded properties may include 
4.4 	owner-occupied homes.
4.5 	(b) The base for this program in fiscal year 
4.6 	2026 and beyond is $2,000,000.

4.7
4.8	Subd. 4.Manufactured Home Park 
Infrastructure Grants and Loans
 		16,000,000
		1,000,000
	
4.9 	(a) This appropriation is for manufactured 
4.10 	home park infrastructure grants and loans 
4.11 	under Minnesota Statutes, section 462A.2035, 
4.12 	subdivision 1b.
4.13 	(b) The base for this program in fiscal year 
4.14 	2026 and beyond is $1,000,000.
4.15 	(c) By January 15 each year, the commissioner 
4.16 	must submit a report on the use of funds in 
4.17 	this subdivision to the chairs and ranking 
4.18 	minority members of the legislative 
4.19 	committees having jurisdiction over housing 
4.20 	finance and policy. The report must include 
4.21 	the following information:
4.22 	(1) grants and loans requested and funded 
4.23 	during the prior fiscal year, organized by 
4.24 	ownership type of the manufactured home 
4.25 	park, such as private, cooperative, and 
4.26 	municipal ownership, and by county;
4.27 	(2) the average amount of grants and loans 
4.28 	awarded;
4.29 	(3)  loans requested and loans funded during 
4.30 	the prior fiscal year, organized by ownership 
4.31 	type of the manufactured home park, such as 
4.32 	private, cooperative, and municipal ownership, 
4.33 	and by county;
5.1 	(4) the average amount of loans issued;
5.2 	(5) information regarding the terms of the 
5.3 	loans; and
5.4 	(6) information about how repaid loan funds 
5.5 	were used.

5.6	Subd. 5.Workforce Homeownership Program
 		20,250,000
		250,000
	
5.7 	(a) This appropriation is for the workforce 
5.8 	homeownership program under Minnesota 
5.9 	Statutes, section 462A.38.
5.10 	(b) The base for this program in fiscal year 
5.11 	2026 and beyond is $250,000.

5.12	Subd. 6.Housing Trust Fund
 		11,646,000
		11,646,000
	
5.13 	This appropriation is for deposit in the housing 
5.14 	trust fund account created under Minnesota 
5.15 	Statutes, section 462A.201, and may be used 
5.16 	for the purposes provided in that section.

5.17	Subd. 7.Homework Starts with Home
 		2,750,000
		2,750,000
	
5.18 	This appropriation is for the homework starts 
5.19 	with home program under Minnesota Statutes, 
5.20 	sections 462A.201, subdivision 2, paragraph 
5.21 	(a), clause (4), and 462A.204, subdivision 8, 
5.22 	to provide assistance to homeless families, 
5.23 	those at risk of homelessness, or highly mobile 
5.24 	families.

5.25	Subd. 8.Rental Assistance for Mentally Ill
 		5,338,000
		5,338,000
	
5.26 	(a) This appropriation is for the rental housing 
5.27 	assistance program for persons with a mental 
5.28 	illness or families with an adult member with 
5.29 	a mental illness under Minnesota Statutes, 
5.30 	section 462A.2097. Among comparable 
5.31 	proposals, the agency shall prioritize those 
5.32 	proposals that target, in part, eligible persons 
6.1 	who desire to move to more integrated, 
6.2 	community-based settings.
6.3 	(b) Notwithstanding any law to the contrary, 
6.4 	this appropriation may be used for risk 
6.5 	mitigation funds, landlord incentives, or other 
6.6 	costs necessary to decrease the risk of 
6.7 	homelessness, as determined by the agency.
6.8 	(c) The base for this program in fiscal year 
6.9 	2026 and beyond is $5,338,000.

6.10	Subd. 9.Family Homeless Prevention
 		55,269,000
		10,269,000
	
6.11 	(a) This appropriation is for the family 
6.12 	homeless prevention and assistance program 
6.13 	under Minnesota Statutes, section 462A.204.
6.14 	(b) Up to $1,000,000 in fiscal year 2024 is for 
6.15 	grants to eligible applicants to create or expand 
6.16 	risk mitigation programs to reduce landlord 
6.17 	financial risks for renting to persons eligible 
6.18 	under Minnesota Statutes, section 462A.204. 
6.19 	Eligible programs may use funds for 
6.20 	administrative costs, outreach and coordination 
6.21 	staff, and to reimburse landlords for costs 
6.22 	including but not limited to nonpayment of 
6.23 	rent, or damage costs above those costs 
6.24 	covered by security deposits. This 
6.25 	appropriation may be used for staffing costs 
6.26 	necessary to implement the program. The 
6.27 	agency may give priority to applicants that 
6.28 	demonstrate a matching amount of money by 
6.29 	a local unit of government, business, or 
6.30 	nonprofit organization. Grantees must 
6.31 	establish a procedure to review and validate 
6.32 	claims and reimbursements under this 
6.33 	program. This is a onetime appropriation.
7.1 	(c) For fiscal year 2024 and fiscal year 2025, 
7.2 	qualified families may receive more than 24 
7.3 	months of rental assistance.
7.4 	(d) If the agency determines that the 
7.5 	metropolitan area needs additional support to 
7.6 	serve homeless households or those at risk of 
7.7 	homelessness, the agency is authorized to 
7.8 	grant funds to entities other than counties in 
7.9 	the metropolitan area, including but not limited 
7.10 	to nonprofit organizations.
7.11 	(e) When a new grantee works with a current 
7.12 	or former grantee in a given geographic area, 
7.13 	a new grantee may work with either an 
7.14 	advisory committee as required under 
7.15 	Minnesota Statutes, section 462A.204, 
7.16 	subdivision 6, or the local continuum of care 
7.17 	and is not required to meet the requirements 
7.18 	of Minnesota Statutes, section 462A.204, 
7.19 	subdivision 4.
7.20 	(f) Notwithstanding Minnesota Statutes, 
7.21 	section 16C.06, $10,000,000 of this 
7.22 	appropriation is allocated to federally 
7.23 	recognized American Indian Tribes located in 
7.24 	Minnesota.
7.25 	(g) $2,400,000 in fiscal year 2024 is for a 
7.26 	grant to Neighborhood House, a Ramsey 
7.27 	County-based nonprofit organization, to 
7.28 	provide administrative costs for families facing 
7.29 	eviction, rental assistance, delinquent utility 
7.30 	fees, mortgage assistance, and damage deposit 
7.31 	assistance. This is a onetime appropriation.
7.32 	(h) The base for this program in fiscal year 
7.33 	2026 and beyond is $10,269,000.

8.1	Subd. 10.Home Ownership Assistance Fund
 		50,885,000
		885,000
	
8.2 	(a) This appropriation is for the home 
8.3 	ownership assistance program under 
8.4 	Minnesota Statutes, section 462A.21, 
8.5 	subdivision 8. The agency shall continue to 
8.6 	strengthen its efforts to address the disparity 
8.7 	gap in the homeownership rate between white 
8.8 	households and indigenous American Indians 
8.9 	and communities of color. To better 
8.10 	understand and address the disparity gap, the 
8.11 	agency is required to collect, on a voluntary 
8.12 	basis, demographic information regarding 
8.13 	race, color, national origin, and sex of 
8.14 	applicants for agency programs intended to 
8.15 	benefit homeowners and homebuyers.
8.16 	(b) The base for this program in fiscal year 
8.17 	2026 and beyond is $885,000.

8.18	Subd. 11.Affordable Rental Investment Fund
 		4,218,000
		4,218,000
	
8.19 	(a) This appropriation is for the affordable 
8.20 	rental investment fund program under 
8.21 	Minnesota Statutes, section 462A.21, 
8.22 	subdivision 8b, to finance the acquisition, 
8.23 	rehabilitation, and debt restructuring of 
8.24 	federally assisted rental property and for 
8.25 	making equity take-out loans under Minnesota 
8.26 	Statutes, section 462A.05, subdivision 39.
8.27 	(b) The owner of federally assisted rental 
8.28 	property must agree to participate in the 
8.29 	applicable federally assisted housing program 
8.30 	and to extend any existing low-income 
8.31 	affordability restrictions on the housing for 
8.32 	the maximum term permitted.
8.33 	(c) The appropriation also may be used to 
8.34 	finance the acquisition, rehabilitation, and debt 
9.1 	restructuring of existing supportive housing 
9.2 	properties and naturally occurring affordable 
9.3 	housing as determined by the commissioner. 
9.4 	For purposes of this paragraph, "supportive 
9.5 	housing" means affordable rental housing with 
9.6 	links to services necessary for individuals, 
9.7 	youth, and families with children to maintain 
9.8 	housing stability.

9.99.10
	Subd. 12.Owner-Occupied Housing 
Rehabilitation
 		2,772,000
		2,772,000
	
9.11 	(a) This appropriation is for the rehabilitation 
9.12 	of owner-occupied housing under Minnesota 
9.13 	Statutes, section 462A.05, subdivisions 14 and 
9.14 	14a.
9.15 	(b) Notwithstanding any law to the contrary, 
9.16 	grants or loans under this subdivision may be 
9.17 	made without rent or income restrictions of 
9.18 	owners or tenants. To the extent practicable, 
9.19 	grants or loans must be made available 
9.20 	statewide.

9.21	Subd. 13.Rental Housing Rehabilitation
 		3,743,000
		3,743,000
	
9.22 	(a) This appropriation is for the rehabilitation 
9.23 	of eligible rental housing under Minnesota 
9.24 	Statutes, section 462A.05, subdivision 14. In 
9.25 	administering a rehabilitation program for 
9.26 	rental housing, the agency may apply the 
9.27 	processes and priorities adopted for 
9.28 	administration of the economic development 
9.29 	and housing challenge program under 
9.30 	Minnesota Statutes, section 462A.33, and may 
9.31 	provide grants or forgivable loans if approved 
9.32 	by the agency.
9.33 	(b) Notwithstanding any law to the contrary, 
9.34 	grants or loans under this subdivision may be 
9.35 	made without rent or income restrictions of 
10.1 	owners or tenants. To the extent practicable, 
10.2 	grants or loans must be made available 
10.3 	statewide.

10.4
10.5	Subd. 14.Homeownership Education, 
Counseling, and Training
 		1,857,000
		1,857,000
	
10.6 	(a) This appropriation is for the 
10.7 	homeownership education, counseling, and 
10.8 	training program under Minnesota Statutes, 
10.9 	section 462A.209.
10.10 	(b) The base for this program in fiscal year 
10.11 	2026 and beyond is $857,000.

10.12	Subd. 15.Capacity-Building Grants
 		3,145,000
		3,145,000
	
10.13 	(a) This appropriation is for capacity-building 
10.14 	grants under Minnesota Statutes, section 
10.15 	462A.21, subdivision 3b. Of this amount, up 
10.16 	to $170,000 in fiscal year 2024 is for Open 
10.17 	Access Connections. The appropriation for 
10.18 	Open Access Connections is onetime.
10.19 	(b) $445,000 in fiscal year 2024 is for a grant 
10.20 	to the Community Stabilization Project to: (1) 
10.21 	deliver services and curriculum to renters and 
10.22 	property owners in order to preserve deeply 
10.23 	affordable rental units in underrepresented 
10.24 	communities; (2) help create entry-level 
10.25 	employment opportunities for renters; and (3) 
10.26 	construct a secure space for documents and 
10.27 	identification for those experiencing 
10.28 	homelessness. This is a onetime appropriation.
10.29 	(c) The base for this program in fiscal year 
10.30 	2026 and beyond is $645,000.

10.31	Subd. 16.Build Wealth Minnesota
 		5,500,000
		500,000
	
10.32 	(a) $500,000 each year is for a grant to Build 
10.33 	Wealth Minnesota to provide a family 
10.34 	stabilization plan program.
11.1 	(b) $5,000,000 the first year is for a grant to 
11.2 	Build Wealth Minnesota for the 9,000 Equities 
11.3 	Fund, a targeted loan pool, to provide 
11.4 	affordable first mortgages or equivalent 
11.5 	financing opportunities to households 
11.6 	struggling to access mortgages in underserved 
11.7 	communities of color. Of this amount, up to 
11.8 	$1,000,000 may be used for a grant to 
11.9 	Stairstep Foundation to support completion of 
11.10 	the Family Stabilization Plan program 
11.11 	developed by Build Wealth Minnesota. This 
11.12 	is a onetime appropriation.

11.13	Subd. 17.Housing Infrastructure
 		100,000,000
		100,000,000
	
11.14 	This appropriation is for the housing 
11.15 	infrastructure program for the eligible 
11.16 	purposes under Minnesota Statutes, section 
11.17 	462A.37, subdivision 2. This is a onetime 
11.18 	appropriation.

11.19	Subd. 18.Supportive Housing
 		25,000,000
		-0-
	
11.20 	This appropriation is for the supportive 
11.21 	housing program under Minnesota Statutes, 
11.22 	section 462A.42. This is a onetime 
11.23 	appropriation.

11.24
11.25	Subd. 19.First-Generation Homebuyers Down 
Payment Assistance
 		50,000,000
		-0-
	
11.26 	This appropriation is for the first-generation 
11.27 	homebuyers down payment assistance fund 
11.28 	under Minnesota Statutes, section 462A.41. 
11.29 	This is a onetime appropriation.

11.30
11.31	Subd. 20.Community-Based First-Generation 
Homebuyers Down Payment Assistance
 		100,000,000
		-0-
	
11.32 	This appropriation is for a grant to Midwest 
11.33 	Minnesota Community Development 
11.34 	Corporation (MMCDC) to act as the 
12.1 	administrator of the community-based 
12.2 	first-generation homebuyers down payment 
12.3 	assistance program. The funds shall be 
12.4 	available to MMCDC for a three-year period 
12.5 	commencing with issuance of the funds to 
12.6 	MMCDC. At the expiration of that period, any 
12.7 	unused funds shall be remitted to the agency. 
12.8 	Any funds recaptured by MMCDC after the 
12.9 	expiration of that period shall be remitted to 
12.10 	the agency. Funds remitted to the agency 
12.11 	under this paragraph are appropriated to the 
12.12 	agency for administration of the 
12.13 	first-generation homebuyers down payment 
12.14 	assistance fund.

12.15	Subd. 21.Local Housing Trust Fund Grants
 		4,800,000
		-0-
	
12.16 	(a) This appropriation is for deposit in the 
12.17 	housing development fund for grants to local 
12.18 	housing trust funds established under 
12.19 	Minnesota Statutes, section 462C.16, to 
12.20 	incentivize local funding. This is a onetime 
12.21 	appropriation.
12.22 	(b) A grantee is eligible to receive a grant 
12.23 	amount equal to 100 percent of the public 
12.24 	revenue committed to the local housing trust 
12.25 	fund from any source other than the state or 
12.26 	federal government, up to $150,000, and in 
12.27 	addition, an amount equal to 50 percent of the 
12.28 	public revenue committed to the local housing 
12.29 	trust fund from any source other than the state 
12.30 	or federal government that is more than 
12.31 	$150,000 but not more than $300,000.
12.32 	(c) A grantee must use grant funds within eight 
12.33 	years of receipt for purposes (1) authorized 
12.34 	under Minnesota Statutes, section 462C.16, 
12.35 	subdivision 3, and (2) benefiting households 
13.1 	with incomes at or below 115 percent of the 
13.2 	state median income. A grantee must return 
13.3 	any grant funds not used for these purposes 
13.4 	within eight years of receipt to the 
13.5 	commissioner of the Minnesota Housing 
13.6 	Finance Agency for deposit into the housing 
13.7 	development fund.

13.8
13.9	Subd. 22.Greater Minnesota Housing 
Infrastructure Grant Program
 		5,000,000
		-0-
	
13.10 	This appropriation is for the greater Minnesota 
13.11 	housing infrastructure grant program. This is 
13.12 	a onetime appropriation.

13.13	Subd. 23.Stable Rental Housing Mediation
 		3,000,000
		-0-
	
13.14 	(a) This appropriation is for a grant to 
13.15 	Community Mediation Minnesota to 
13.16 	administer a statewide housing mediation 
13.17 	program to provide support to renters and 
13.18 	residential rental property owners. This is a 
13.19 	onetime appropriation.
13.20 	(b) The grant money must be used to: (1) 
13.21 	provide housing dispute resolution services; 
13.22 	(2) increase awareness of and access to 
13.23 	housing dispute resolution services statewide; 
13.24 	(3) provide alternative dispute resolution 
13.25 	services, including but not limited to eviction 
13.26 	prevention, mediation, and navigation 
13.27 	services; (4) partner with culturally specific 
13.28 	dispute resolution programs to provide training 
13.29 	and assistance with virtual and in-person 
13.30 	mediation services; (5) increase mediation 
13.31 	services for seniors and renters with 
13.32 	disabilities and illnesses that face housing 
13.33 	instability; (6) increase the diversity and 
13.34 	cultural competency of the housing mediator 
13.35 	roster; (7) integrate housing mediation services 
14.1 	with navigation and resource connection 
14.2 	services, legal assistance, and court services 
14.3 	programs; (8) develop and administer 
14.4 	evaluation tools to design, modify, and 
14.5 	replicate effective program outcomes; and (9) 
14.6 	provide for necessary administrative expenses.

14.7
14.8	Subd. 24.Manufactured Home Park Cooperative 
Purchase
 		10,000,000
		-0-
	
14.9 	(a) This appropriation is for a grant to 
14.10 	Northcountry Cooperative Foundation and its 
14.11 	wholly controlled affiliated entities to make 
14.12 	loans as specified under this section. This is 
14.13 	a onetime appropriation.
14.14 	(b) The funds may be used for a revolving 
14.15 	fund under Minnesota Statutes, section 
14.16 	462A.05, subdivision 35, for the purposes of 
14.17 	conversion of manufactured home parks to 
14.18 	cooperative ownership.
14.19 	(c) Funds must be used for the creation and 
14.20 	preservation of housing that is affordable to 
14.21 	households with incomes at or below 80 
14.22 	percent of the greater of state or area median 
14.23 	income.
14.24 	(d) A deed purchased with a loan under this 
14.25 	section must contain a covenant running with 
14.26 	the land requiring that the land be used as a 
14.27 	manufactured home park for 30 years from 
14.28 	the date of purchase.
14.29 	(e) The commissioner is encouraged to 
14.30 	establish a mortgage program, with terms and 
14.31 	conditions determined by the agency, to help 
14.32 	facilitate the distribution of this appropriation.
14.33 	(f) For the purposes of this subdivision, the 
14.34 	term "manufactured home" has the meaning 
15.1 	given in Minnesota Statutes, section 327B.01, 
15.2 	subdivision 13, and the term "manufactured 
15.3 	home park" has the meaning given in 
15.4 	Minnesota Statutes, section 327.14, 
15.5 	subdivision 3.

15.6	Subd. 25.Manufactured Home Lending Grants
 		10,000,000
		-0-
	
15.7 	This appropriation is for the manufactured 
15.8 	home lending grant program. This is a onetime 
15.9 	appropriation.

15.10	Subd. 26.Lead Safe Homes Grant Program
 		4,000,000
		-0-
	
15.11 	This appropriation is for the lead safe homes 
15.12 	grant program. This is a onetime 
15.13 	appropriation.

15.14
15.15	Subd. 27.High-Rise Sprinkler System Grant 
Program
 		10,000,000
		-0-
	
15.16 	This appropriation is for the high-rise sprinkler 
15.17 	system grant program. Of this amount, up to 
15.18 	$4,000,000 must be for a grant to 
15.19 	CommonBond Communities for installation 
15.20 	of sprinkler systems at two buildings known 
15.21 	as Seward Tower West located at 2515 South 
15.22 	9th Street in Minneapolis and Seward Tower 
15.23 	East located at 2910 East Franklin Avenue in 
15.24 	Minneapolis. This is a onetime appropriation.

15.25
15.26	Subd. 28.First-Time Homebuyer, Fee-Based 
Home Purchase Financing
 		10,000,000
		-0-
	
15.27 	This appropriation is for the first-time 
15.28 	homebuyer, fee-based home purchase 
15.29 	financing program. This appropriation is 
15.30 	onetime. Services rendered under grant 
15.31 	contracts with the grantee may occur any time 
15.32 	up until June 30, 2026.

16.1	Subd. 29.Community Stabilization
 		45,000,000
		45,000,000
	
16.2 	This appropriation is for the community 
16.3 	stabilization program. This a onetime 
16.4 	appropriation. Of this amount, $10,000,000 is 
16.5 	for a grant to AEON for Huntington Place.

16.6	Subd. 30.Rent Assistance Program
 		46,000,000
		-0-
	
16.7 	(a) This appropriation is for the rent assistance 
16.8 	program under Minnesota Statutes, section 
16.9 	462A.2095.
16.10 	(b) The base for this program in fiscal year 
16.11 	2026 and beyond is $23,000,000.

16.12
16.13	Subd. 31.Homeownership Investment Grants 
Program
 		40,000,000
		-0-
	
16.14 	This appropriation is for the homeownership 
16.15 	investment grants program. This is a onetime 
16.16 	appropriation.

16.17	Subd. 32.Northland Foundation
 		1,000,000
		-0-
	
16.18 	This appropriation is for a grant to Northland 
16.19 	Foundation for use on expenditures authorized 
16.20 	under Minnesota Statutes, section 462C.16, 
16.21 	subdivision 3 and on assisting local 
16.22 	governments to establish local or regional 
16.23 	housing trust funds. Northland Foundation 
16.24 	may award grants and loans to other entities 
16.25 	to expend on authorized expenditures under 
16.26 	this section. This appropriation is onetime and 
16.27 	available until June 30, 2025.

16.28	Subd. 33.Stable Housing Organization Relief
 		50,000,000
		-0-
	
16.29 	This appropriation is for the stable housing 
16.30 	organization relief program. This appropriation 
16.31 	is onetime.

17.1	Subd. 34.Public Housing Rehabilitation
 		15,000,000
		-0-
	
17.2 	(a) $10,000,000 is to finance the costs of 
17.3 	rehabilitation to preserve public housing under 
17.4 	Minnesota Statutes, section 462A.202, 
17.5 	subdivision 3a. For purposes of this section, 
17.6 	"public housing" means housing for 
17.7 	low-income persons and households that is 
17.8 	financed by the federal government and 
17.9 	publicly owned or housing that has been 
17.10 	repositioned under the federal Rental 
17.11 	Assistance Demonstration or similar program. 
17.12 	The agency may give priority to proposals that 
17.13 	maximize nonstate resources to finance the 
17.14 	capital costs; requests that prioritize long-term 
17.15 	affordability; and requests that prioritize 
17.16 	health, safety, and energy improvements. The 
17.17 	priority in Minnesota Statutes, section 
17.18 	462A.202, subdivision 3a, for projects to 
17.19 	increase the supply of affordable housing and 
17.20 	the restrictions of Minnesota Statutes, section 
17.21 	462A.202, subdivision 7, do not apply to this 
17.22 	appropriation. This is a onetime appropriation.
17.23 	(b) $5,000,000 is for a grant to the 
17.24 	Minneapolis Public Housing Authority for the 
17.25 	city of Minneapolis and its affiliated entities, 
17.26 	including but not limited to its wholly 
17.27 	controlled nonprofit corporation, Community 
17.28 	Housing Resources, to rehabilitate, preserve, 
17.29 	equip, and repair its deeply affordable family 
17.30 	housing units. This a onetime appropriation.

17.31	Subd. 35.Availability and Transfer of Funds
 					
17.32 	Money appropriated in the first year in this 
17.33 	article is available the second year. The 
17.34 	commissioner may shift or transfer money in 
17.35 	the second year in subdivisions 2, 3, 4, 5, 11, 
18.1 	12, and 13 to address high-priority housing 
18.2 	needs. The commissioner may also shift 
18.3 	money between subdivisions 10 and 19 after 
18.4 	fiscal year 2024.

18.5	Sec. 3. MANAGEMENT AND BUDGET
 	$
	200,000
	$
	-0-
	
18.6 	$200,000 in fiscal year 2024 is to the 
18.7 	commissioner of management and budget to 
18.8 	fund a study by Management Analysis and 
18.9 	Development on expediting rental assistance 
18.10 	payments. This is a onetime appropriation.

18.11 	ARTICLE 2
18.12 	HOUSING GRANT PROGRAMS

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

18.17 	Sec. 2. [462A.2095] RENT ASSISTANCE PROGRAM.
18.18 		Subdivision 1.Program established. (a) The state rent assistance account is established 
18.19 	as a separate account in the housing development fund. Money in the account is appropriated 
18.20 	to the agency for grants to program administrators for the purposes specified in this section.
18.21 	(b) Money deposited in the account under section 297A.9925 is for grants to program 
18.22 	administrators in the metropolitan counties as defined in section 473.121, subdivision 4.
18.23 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
18.24 	meanings given.
18.25 	(b) "Eligible household" means a household with an annual income of up to 50 percent 
18.26 	of the area median income as determined by the United States Department of Housing and 
18.27 	Urban Development, adjusted for family size, that is paying more than 30 percent of the 
18.28 	household's annual income on rent. Eligibility is determined at the time a household first 
18.29 	receives rent assistance under this section. Eligibility shall be recertified every year thereafter. 
18.30 	Eligible household does not include a household receiving federal tenant-based or 
18.31 	project-based assistance under Section 8 of the United States Housing Act of 1937, as 
18.32 	amended.
19.1 	(c) "Program administrator" means:
19.2 	(1) a housing and redevelopment authority or other local government agency or authority 
19.3 	that administers federal tenant-based or project-based assistance under Section 8 of the 
19.4 	United States Housing Act of 1937, as amended;
19.5 	(2) a Tribal government or Tribally designated housing entity; or
19.6 	(3) if there is no entity under clause (1) or (2) with the capacity to administer the program, 
19.7 	a nongovernmental organization determined by the agency to have the capacity to administer 
19.8 	the program.
19.9 		Subd. 3.Grants to program administrators. (a) The agency may make grants to 
19.10 	program administrators to provide rental assistance for eligible households. For both 
19.11 	tenant-based and project-based assistance, program administrators shall pay assistance 
19.12 	directly to housing providers. Rental assistance may be provided in the form of tenant-based 
19.13 	assistance or project-based assistance. Notwithstanding the amounts awarded under 
19.14 	subdivision 1, paragraph (b), and to the extent practicable, the agency must make grants 
19.15 	statewide in proportion to the number of households eligible for assistance in each county 
19.16 	according to the most recent American Community Survey of the United States Census 
19.17 	Bureau.
19.18 	(b) The program administrator may use its existing procedures to administer the rent 
19.19 	assistance program or may develop alternative procedures with the goals of reaching 
19.20 	households most in need and incentivizing landlord participation. The agency must approve 
19.21 	a program administrator's alternative procedures. Priority for rental assistance shall be given 
19.22 	to households with children 18 years of age and under, and annual incomes of up to 30 
19.23 	percent of the area median income. Program administrators may establish additional priority 
19.24 	populations based on local need.
19.25 		Subd. 4.Amount of rent assistance. A program administrator may provide tenant-based 
19.26 	or project-based vouchers in amounts equal to the difference between 30 percent of household 
19.27 	income and the rent charged, plus an allowance for utilities if not included in rent. A program 
19.28 	administrator may not provide assistance that is more than the difference between 30 percent 
19.29 	of the tenant's gross income and 120 percent of the payment standard, plus utilities, as 
19.30 	established by the local public housing authority, unless otherwise authorized by the agency.
19.31 		Subd. 5.Administrative fees. The agency shall consult with public housing authorities 
19.32 	to determine the amount of administrative fees, including start-up costs, to pay to program 
19.33 	administrators.
20.1 		Subd. 6.Rent assistance not income. (a) Notwithstanding any law to the contrary, 
20.2 	payments under this section must not be considered income, assets, or personal property 
20.3 	for purposes of determining eligibility or recertifying eligibility for state public assistance, 
20.4 	including but not limited to:
20.5 	(1) child care assistance programs under chapter 119B;
20.6 	(2) general assistance, Minnesota supplemental aid, and food support under chapter 
20.7 	256D;
20.8 	(3) housing support under chapter 256I;
20.9 	(4) Minnesota family investment program and diversionary work program under chapter 
20.10 	256J; and
20.11 	(5) economic assistance programs under chapter 256P.
20.12 	(b) The commissioner of human services must not consider rent assistance grant money 
20.13 	under this section as income or assets under section 256B.056, subdivision 1a, paragraph 
20.14 	(a); subdivision 3; or subdivision 3c, or for persons with eligibility determined under section 
20.15 	256B.057, subdivision 3, 3a, or 3b.
20.16 		Subd. 7.Oversight. The agency may direct program administrators to comply with 
20.17 	applicable sections of Code of Federal Regulations, title 24, parts 982 and 983.

20.18 	Sec. 3. [462A.41] FIRST-GENERATION HOMEBUYERS DOWN PAYMENT 
20.19 	ASSISTANCE FUND.
20.20 		Subdivision 1.Establishment. A first-generation homebuyers down payment assistance 
20.21 	fund is established for the agency to provide targeted assistance to eligible first-generation 
20.22 	homebuyer households throughout the state. The agency may partner with community 
20.23 	organizations, including community development financial institutions, credit unions, other 
20.24 	financial institutions, nonprofits, government entities, or federally recognized American 
20.25 	Indian Tribes or their Tribally Designated Housing Entities, to deliver the assistance.
20.26 		Subd. 2.Eligible homebuyer. (a) For purposes of this section, "eligible first-generation 
20.27 	homebuyer" means an individual:
20.28 	(1) whose household income is at or below 115 percent of the statewide or area median 
20.29 	income, whichever is greater, at the time of purchase;
20.30 	(2) who is a first-time homebuyer as defined by the agency;
20.31 	(3) who meets the following criteria:
21.1 	(i) has either never owned a home or owned a home but lost it due to foreclosure; and
21.2 	(ii) has a parent or prior legal guardian who does not currently own a home and had 
21.3 	never previously owned a home or had previously owned a home but lost it due to 
21.4 	foreclosure;
21.5 	(4) who completes an approved homebuyer education course; and
21.6 	(5) who plans on occupying the home as a primary residence.
21.7 	(b) An eligible homebuyer must purchase the home within the maximum loan amount 
21.8 	established by the Federal Housing Administration for the county in which the home is 
21.9 	located and must contribute a minimum of $1,000 toward down payment or closing costs.
21.10 		Subd. 3.Use of funds. Assistance under this section may be provided as a forgivable 
21.11 	loan, a deferred loan, or a combination of both. Homebuyers may use the funds to purchase 
21.12 	a one- to four-unit home, including manufactured homes. The assistance is limited to the 
21.13 	greater of ten percent of the purchase price of a home or $35,000 per eligible first-generation 
21.14 	homebuyer household. The amount of assistance shall be adjusted for market conditions 
21.15 	over time at the discretion of the agency. The funds may be used for one or more of the 
21.16 	following: closing costs, down payment, mortgage insurance, interest rate buy-down, and 
21.17 	principal reduction. The funds can be combined with other homebuyer assistance and must 
21.18 	be used in conjunction with a conforming first mortgage loan that is fully amortizing, with 
21.19 	or without interest, and meets the standard of a qualified mortgage or as otherwise determined 
21.20 	by the agency.
21.21 		Subd. 4.Repayment. Loans would be repayable if the property converts to nonowner 
21.22 	occupancy, is sold within the loan period, is subjected to an ineligible refinance, is subjected 
21.23 	to an unauthorized transfer of title, or for other reasons as stated in the loan documents. 
21.24 	Recapture can be waived in the event of financial or personal hardship at the discretion of 
21.25 	the agency.
21.26 		Subd. 5.Administration. The first-generation homebuyers down payment assistance 
21.27 	fund is available statewide and shall be administered by the agency. If the agency works 
21.28 	with a lending partner, that partner may use a percentage of the funds received for 
21.29 	administrative fees as determined by the agency.

21.30 	Sec. 4. [462A.42] SUPPORTIVE HOUSING PROGRAM.
21.31 		Subdivision 1.Establishment. The agency shall establish a supportive housing program 
21.32 	to provide funding to increase alignment with housing development financing and strengthen 
21.33 	supportive housing for individuals and families who have experienced homelessness.
22.1 		Subd. 2.Definition. For the purposes of this section, "supportive housing" means housing 
22.2 	that is not time-limited and provides or coordinates with services necessary for residents to 
22.3 	maintain housing stability and maximize opportunities for education and employment.
22.4 		Subd. 3.Eligible recipients. Funding may be made to a local unit of government, a 
22.5 	federally recognized American Indian Tribe or its Tribally Designated Housing Entity 
22.6 	located in Minnesota, a private developer, or a nonprofit organization.
22.7 		Subd. 4.Eligible uses. (a) Funds shall be used to cover costs needed for supportive 
22.8 	housing to operate effectively. Costs may include but are not limited to building operating 
22.9 	expenses such as front desk, tenant service coordination, revenue shortfall, and security 
22.10 	costs. These funds may be capitalized as part of development costs. Funds may be provided 
22.11 	to support existing permanent supportive housing units or to cover costs associated with 
22.12 	new permanent supportive housing units.
22.13 	(b) Funds may be used to create partnerships with the health care sector and other sectors 
22.14 	to demonstrate sustainable ways to provide services for supportive housing residents, improve 
22.15 	access to health care, and reduce the use of expensive emergency and institutional care. 
22.16 	This may be done in partnership with other state agencies, including the Department of 
22.17 	Health and the Department of Human Services.
22.18 		Subd. 5.Application. The commissioner shall develop forms and procedures for soliciting 
22.19 	and reviewing applications for funding under this section. The commissioner shall consult 
22.20 	with interested stakeholders when developing the guidelines and procedures for the program.

22.21 	Sec. 5. LEAD SAFE HOMES GRANT PROGRAM.
 22.22 		Subdivision 1.Establishment. The commissioner of the Minnesota Housing Finance 
22.23 	Agency must establish and administer a grant program to support making homes safer 
22.24 	through lead testing and hazard reduction.
22.25 		Subd. 2.Eligible projects. (a) The commissioner may award a grant under this section 
22.26 	for any project that will:
22.27 	(1) provide lead risk assessments completed by a lead inspector or a lead risk assessor 
22.28 	licensed by the commissioner of health pursuant to section 144.9505 for properties built 
22.29 	before 1978 to determine the presence of lead hazards;
22.30 	(2) remediate lead health hazards; and
22.31 	(3) serve low-income residents. For multifamily rental properties, at least 50 percent of 
22.32 	the tenants must have an income at or below 60 percent of the area median income.
23.1 	(b) The commissioner must give priority to funding projects that serve areas where there 
23.2 	are high concentrations of lead poisoning in children based on information provided by the 
23.3 	commissioner of health.
23.4 	(c) The commissioner must balance grant awards so that projects occur within and outside 
23.5 	metropolitan counties as defined in section 473.121, subdivision 4.
23.6 	(d) Up to ten percent of a grant award may be used to administer the grant and provide 
23.7 	education and outreach about lead health hazards.
23.8 		Subd. 3.Grant eligibility. A nonprofit organization or local unit of government may 
23.9 	apply for a grant under this section.
23.10 		Subd. 4.Short title.  This section shall be known as the "Dustin Luke Shields Act."

23.11 	Sec. 6. COMMUNITY STABILIZATION PROGRAM.
 23.12 		Subdivision 1.Establishment. The Minnesota Housing Finance Agency shall establish 
23.13 	a community stabilization program to provide grants or loans to preserve naturally occurring 
23.14 	affordable housing through acquisition or rehabilitation.
23.15 		Subd. 2.Definitions. For the purposes of this section, "naturally occurring affordable 
23.16 	housing" means:
23.17 	(1) multiunit rental housing that:
23.18 	(i) is at least 20 years old;
23.19 	(ii) has rents in a majority of units that are affordable to households at or below 60 
23.20 	percent of the greater of state or area median income as determined by the United States 
23.21 	Department of Housing and Urban Development; and
23.22 	(iii) does not currently have federal or state financing or tax credits that require income 
23.23 	or rent restrictions, except for public housing, as defined in Section 9 of the Housing Act 
23.24 	of 1937, that is part of a mixed-finance community; or
23.25 	(2) owner-occupied housing located in communities where market pressures or significant 
23.26 	deferred rehabilitation needs, as defined by the agency, create opportunities for displacement 
23.27 	or the loss of owner-occupied housing affordable to households at or below 115 percent of 
23.28 	the greater of state or area median income as determined by the United States Department 
23.29 	of Housing and Urban Development.
23.30 		Subd. 3.Eligible recipients. (a) Grants or loans may be made to:
23.31 	(1) a local unit of government;
24.1 	(2) a federally recognized American Indian Tribe located in Minnesota or its Tribally 
24.2 	Designated Housing Entity;
24.3 	(3) a private developer;
24.4 	(4) a limited equity cooperative;
24.5 	(5) a cooperative created under chapter 308A or 308B;
24.6 	(6) a community land trust created for the purposes outlined in section 462A.31, 
24.7 	subdivision 1; or
24.8 	(7) a nonprofit organization.
24.9 	(b) The agency may make a grant to a statewide intermediary to facilitate the acquisition 
24.10 	and associated rehabilitation of existing multiunit rental housing and may use an intermediary 
24.11 	or intermediaries for the acquisition and associated rehabilitation of owner-occupied housing.
24.12 		Subd. 4.Eligible uses. The program shall provide grants or loans for the purpose of 
24.13 	acquisition, rehabilitation, interest rate reduction, or gap financing of housing to support 
24.14 	the preservation of naturally occurring affordable housing. Priority in funding shall be given 
24.15 	to proposals that serve lower-income households and maintain longer periods of affordability.
24.16 		Subd. 5.Owner-occupied housing income limits. Households served through grants 
24.17 	or loans related to owner-occupied housing must have, at initial occupancy, income that is 
24.18 	at or below 115 percent of the greater of state or area median income as determined by the 
24.19 	United States Department of Housing and Urban Development.
24.20 		Subd. 6.Multifamily housing rent limits. Multifamily housing financed through grants 
24.21 	or loans under this section must remain affordable to low-income or moderate-income 
24.22 	households as defined by the agency.
24.23 		Subd. 7.Application. (a) The agency shall develop forms and procedures for soliciting 
24.24 	and reviewing applications for loans or grants under this section. The agency shall consult 
24.25 	with interested stakeholders when developing the guidelines and procedures for the program.
24.26 	(b) Notwithstanding any other applicable law, the agency may accept applications on a 
24.27 	noncompetitive, rolling basis in order to provide funds for eligible properties as they become 
24.28 	available.
24.29 		Subd. 8.Voucher requirement for rental properties. Rental properties that receive 
24.30 	funds must accept rental subsidies, including but not limited to vouchers under Section 8 
24.31 	of the United States Housing Act of 1937, as amended.

25.1 	Sec. 7. GREATER MINNESOTA HOUSING INFRASTRUCTURE GRANT 
25.2 	PROGRAM.
 25.3 		Subdivision 1.Grant program established. The commissioner of the Minnesota Housing 
25.4 	Finance Agency may make grants to cities to provide up to 50 percent of the capital costs 
25.5 	of public infrastructure necessary for an eligible workforce housing development project. 
25.6 	The commissioner may make a grant award only after determining that nonstate resources 
25.7 	are committed to complete the project. The nonstate contribution may be cash, other 
25.8 	committed grant funds, or in kind. In-kind contributions may include the value of the site, 
25.9 	whether the site is prepared before or after the law appropriating money for the grant is 
25.10 	enacted.
25.11 		Subd. 2.Definitions. (a) For the purposes of this section, the following terms have the 
25.12 	meanings given.
25.13 	(b) "City" means a statutory or home rule charter city located outside the metropolitan 
25.14 	area, as defined in Minnesota Statutes, section 473.121, subdivision 2.
25.15 	(c) "Housing infrastructure" means publicly owned physical infrastructure necessary to 
25.16 	support housing development projects, including but not limited to sewers, water supply 
25.17 	systems, utility extensions, streets, wastewater treatment systems, stormwater management 
25.18 	systems, and facilities for pretreatment of wastewater to remove phosphorus.
25.19 		Subd. 3.Eligible projects. Housing projects eligible for a grant under this section may 
25.20 	be a single-family or multifamily housing development, and either owner-occupied or rental.
25.21 		Subd. 4.Application. (a) The commissioner must develop forms and procedures for 
25.22 	soliciting and reviewing applications for grants under this section. At a minimum, a city 
25.23 	must include in its application a resolution of the city council certifying that the required 
25.24 	nonstate match is available. The commissioner must evaluate complete applications for 
25.25 	funding for eligible projects to determine that:
25.26 	(1) the project is necessary to increase sites available for housing development that will 
25.27 	provide adequate housing stock for the current or future workforce; and
25.28 	(2) the increase in workforce housing will result in substantial public and private capital 
25.29 	investment in the city in which the project would be located.
25.30 	(b) The determination of whether to make a grant for a site is within the discretion of 
25.31 	the commissioner, subject to this section. The commissioner's decisions and application of 
25.32 	the criteria are not subject to judicial review, except for abuse of discretion.
26.1 		Subd. 5.Maximum grant amount. A city may receive no more than $30,000 per lot 
26.2 	for single-family, duplex, triplex, or fourplex housing developed and no more than $180,000 
26.3 	per lot for multifamily housing with more than four units per building. A city may receive 
26.4 	no more than $500,000 in two years for one or more housing developments.

26.5 	Sec. 8. STABLE HOUSING ORGANIZATION RELIEF PROGRAM.
 26.6 		Subdivision 1.Establishment. The commissioner of the Minnesota Housing Finance 
26.7 	Agency must establish and administer a grant program in accordance with this section to 
26.8 	support nonprofits that are experiencing significant detrimental financial impacts due to 
26.9 	recent economic and social conditions.
26.10 		Subd. 2.Eligible organizations. To be eligible for a grant under this section an 
26.11 	organization must:
26.12 	(1) be a nonprofit organization that is tax exempt under section 501(c)(3) of the Internal 
26.13 	Revenue Code that has been doing business in the state for at least ten years as demonstrated 
26.14 	by registration or filing of organizational documents with the secretary of state;
26.15 	(2) have its primary operations located in the state;
26.16 	(3) be experiencing significant detrimental financial impact due to recent economic and 
26.17 	social conditions, including but not limited to decreased operating revenue due to loss of 
26.18 	rental income or increased operating expenses due to inflation in utility expenses, insurance, 
26.19 	or other expenses;
26.20 	(4) have supportive services options available for the individuals and families residing 
26.21 	in the rental housing it provides to low-income populations; and
26.22 	(5) provide, as of December 31, 2022, housing units in the state that it owns or controls 
26.23 	consisting of any of the following:
26.24 	(i) at least 1,000 units of naturally occurring affordable housing. For purposes of this 
26.25 	item, "naturally occurring affordable housing" means multiunit rental housing developments 
26.26 	that have not received financing from the federal low-income housing tax credit program 
26.27 	for which the majority of the units have agreements in place to be affordable to individuals 
26.28 	or families with incomes at or below 60 percent of the area median income as determined 
26.29 	by the United States Department of Housing and Urban Development, adjusted for family 
26.30 	size, and that do not receive project- or other place-based rental subsidies from the federal 
26.31 	government;
27.1 	(ii) rental housing units, not including naturally occurring affordable housing, of which 
27.2 	50 percent of the total number of units are rented to individuals or families whose annual 
27.3 	incomes, according to the most recent income certification as of December 31, 2022, are 
27.4 	at or below 30 percent of the area median income as determined by the United States 
27.5 	Department of Housing and Urban Development, adjusted for family size; or
27.6 	(iii) at least 250 units of permanent supportive housing, as defined in Minnesota Statutes, 
27.7 	section 462A.36, subdivision 1, paragraph (e).
27.8 		Subd. 3.Grant program. (a) The commissioner must provide grants to eligible 
27.9 	organizations as provided in this subdivision.
27.10 	(b) An organization that seeks to obtain a grant must apply to the commissioner by a 
27.11 	date determined by the commissioner, and certify:
27.12 	(1) that it is eligible for a grant under subdivision 2;
27.13 	(2) the total number of rental housing units it owns or controls in the state, including 
27.14 	but not limited to the rental housing units it provides under subdivision 2, clause (5); and
27.15 	(3) information on significant detrimental financial impacts due to recent economic and 
27.16 	social conditions.
27.17 	(c) The amount of a grant to an eligible organization equals:
27.18 	(1) the number of units an eligible organization certifies that it owns or controls in the 
27.19 	state divided by the total number of units certified by all eligible organizations; multiplied 
27.20 	by
27.21 	(2) the total amount of the appropriation for this grant program.
27.22 	(d) No grant to an eligible organization may exceed $4,000 per certified unit. The per-unit 
27.23 	amount of the grant for each eligible organization must be calculated based on the total 
27.24 	number of units each eligible organization owns or controls in the state and is not limited 
27.25 	to the number of units that qualify it as an eligible organization under subdivision 2, clause 
27.26 	(5).
27.27 	(e) Grantees must use grant funds to maintain or improve the housing stability of tenants 
27.28 	by expending funds on:
27.29 	(1) property maintenance, improvements, and security;
27.30 	(2) providing services, including services and programs that promote economic and 
27.31 	social mobility;
28.1 	(3) efforts to attract and retain employees that will assist in providing services and support 
28.2 	to tenants; or
28.3 	(4) forgiveness of all or a portion of rent balances owed by former or current tenants.
28.4 	The commissioner may approve additional uses of this fund that would have a beneficial 
28.5 	impact on the housing stability of tenants.
28.6 		Subd. 4.Reporting and financial audit. Each grantee must submit a report to the 
28.7 	commissioner by September 30, 2024, on the use of those funds in a form determined by 
28.8 	the commissioner. By January 15, 2025, each grantee must report to the chair and ranking 
28.9 	minority members of the legislative committees having jurisdiction over housing on the use 
28.10 	of funds awarded under this section.

28.11 	Sec. 9. COMMUNITY-BASED FIRST-GENERATION HOMEBUYERS 
28.12 	ASSISTANCE PROGRAM.
 28.13 		Subdivision 1.Establishment. A community-based first-generation homebuyers down 
28.14 	payment assistance program is established as a pilot project under the administration of the 
28.15 	Midwest Minnesota Community Development Corporation (MMCDC), a community 
28.16 	development financial institution (CDFI) as defined under the Riegle Community 
28.17 	Development and Regulatory Improvement Act of 1994, to provide targeted assistance to 
28.18 	eligible households.
28.19 		Subd. 2. Eligible household. For purposes of this section, "eligible household" means 
28.20 	a household:
28.21 	(1) whose income is at or below 100 percent of the area median income at the time of 
28.22 	purchase; and
28.23 	(2) that includes at least one adult member:
28.24 	(i) who is preapproved for a first mortgage loan;
28.25 	(ii) who either never owned a home or who owned a home but lost it due to foreclosure; 
28.26 	and
28.27 	(iii) whose parent or prior legal guardian either never owned a home or owned a home 
28.28 	but lost it due to foreclosure.
28.29 	At least one adult household member meeting the criteria under clause (2) must complete 
28.30 	an approved homebuyer education course prior to signing a purchase agreement and, 
28.31 	following the purchase of the home, must occupy it as their primary residence.
29.1 		Subd. 3.Use of funds. Assistance under this section is limited to ten percent of the 
29.2 	purchase price of a one or two unit home, not to exceed $32,000. Funds are reserved at the 
29.3 	issuance of preapproval. Reservation of funds is not contingent on having an executed 
29.4 	purchase agreement. The assistance must be provided in the form of a loan that is forgivable 
29.5 	at a rate of 20 percent per year on the day after the anniversary date of the note. The prorated 
29.6 	balance due is repayable if the property converts to nonowner occupancy, is sold, is subjected 
29.7 	to an ineligible refinance, is subjected to an unauthorized transfer of title, or is subjected to 
29.8 	a completed foreclosure action within the five-year loan term. Recapture can be waived in 
29.9 	the event of financial or personal hardship. Funds may be used for closing costs, down 
29.10 	payment, or principal reduction. The eligible household may select any first mortgage lender 
29.11 	or broker of their choice, provided that the funds are used in conjunction with a conforming 
29.12 	first mortgage loan that is fully amortizing and meets the standards of a qualified mortgage 
29.13 	or meets the minimum standards for exemption under Code of Federal Regulations, title 
29.14 	12, section 1026.43. Funds may be used in conjunction with other programs the eligible 
29.15 	household may qualify for and the loan placed in any priority position.
29.16 		Subd. 4.Administration. The community-based first-generation homebuyers down 
29.17 	payment assistance program is available statewide and shall be administered by MMCDC, 
29.18 	the designated central CDFI. MMCDC may originate and service funds and authorize other 
29.19 	CDFIs, Tribal entities, and nonprofit organizations administering down payment assistance 
29.20 	to reserve, originate, fund, and service funds for eligible households. Administrative costs 
29.21 	must not exceed $3,200 per loan.
29.22 		Subd. 5.Report to legislature. By January 15 each year, the fund administrator, 
29.23 	MMCDC, must report to the chairs and ranking minority members of the legislative 
29.24 	committees with jurisdiction over housing finance and policy the following information:
29.25 	(1) the number and amount of loans closed;
29.26 	(2) the median loan amount;
29.27 	(3) the number and amount of loans issued by race or ethnic categories;
29.28 	(4) the median home purchase price;
29.29 	(5) the interest rates and types of mortgages;
29.30 	(6) the credit scores of both applicants and households served;
29.31 	(7) the total amount returned to the fund; and
29.32 	(8) the number and amount of loans issued by county.

30.1 	Sec. 10. HIGH-RISE SPRINKLER SYSTEM GRANT PROGRAM.
 30.2 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this section.
30.3 	(b) "Eligible building" means an existing residential building in which:
30.4 	(1) at least one story used for human occupancy is 75 feet or more above the lowest 
30.5 	level of fire department vehicle access; and
30.6 	(2) at least two-thirds of its units are affordable to households with an annual income at 
30.7 	or below 50 percent of the area median income as determined by the United States 
30.8 	Department of Housing and Urban Development, adjusted for family size, that is paying 
30.9 	no more than 30 percent of annual income on rent.
30.10 	(c) "Sprinkler system" means the same as the term "fire protection system" as defined 
30.11 	in Minnesota Statutes, section 299M.01.
30.12 		Subd. 2.Grant program. The commissioner of the Housing Finance Agency must make 
30.13 	grants to owners of eligible buildings for installation of sprinkler systems and, if necessary, 
30.14 	for relocation of residents during the installation of sprinkler systems. Priority shall be given 
30.15 	to nonprofit applicants. The maximum grant per eligible building shall be $2,000,000. Each 
30.16 	grant to a nonprofit organization shall require a 25 percent match. Each grant to a for-profit 
30.17 	organization shall require a 50 percent match.

30.18 	Sec. 11. HOMEOWNERSHIP INVESTMENT GRANTS PROGRAM.
 30.19 		Subdivision 1.Grant program established. The commissioner of the Minnesota Housing 
30.20 	Finance Agency must establish and administer a program to support projects that encourage 
30.21 	affordable homeownership in accordance with this section.
30.22 		Subd. 2.Eligible projects. The commissioner may award a grant under this section for 
30.23 	a project that invests in the following:
30.24 	(1) housing development to increase the supply of affordable owner-occupied homes;
30.25 	(2) financing programs for affordable owner-occupied new home construction;
30.26 	(3) acquisition, rehabilitation, and resale of affordable owner-occupied homes or homes 
30.27 	to be converted to owner-occupied homes; or
30.28 	(4) establishing revolving loan accounts at community development financial institutions.
30.29 		Subd. 3.Eligible organization. To be eligible for a grant under this section, a nonprofit 
30.30 	organization must:
30.31 	(1) qualify for tax exempt status under United States Code, title 26, section 501(c)(3);
31.1 	(2) have primary operations located in Minnesota;
31.2 	(3) be certified as a community development financial institution by the United States 
31.3 	Department of the Treasury; and
31.4 	(4) provide affordable housing lending or financing programs.
31.5 		Subd. 4.Commissioner duties. The commissioner shall consult with eligible 
31.6 	organizations and develop forms, applications, and reporting requirements for use by eligible 
31.7 	organizations. All organizations applying for a grant must include as part of their application 
31.8 	a plan to create new affordable home ownership and home preservation opportunities for 
31.9 	targeted areas.

31.10 	Sec. 12. FIRST-TIME HOMEBUYER, FEE-BASED HOME PURCHASE 
31.11 	FINANCING PROGRAM.
 31.12 		Subdivision 1.Administration. A first-time homebuyer, fee-based home purchasing 
31.13 	financing program is established as a pilot project under the administration of NeighborWorks 
31.14 	Home Partners.
31.15 		Subd. 2.Eligible homebuyer. For the purposes of this section, an "eligible homebuyer" 
31.16 	means an individual:
31.17 	(1) whose income is at or below 130 percent of area median income;
31.18 	(2) who resides in a census tract where at least 60 percent of occupied housing units are 
31.19 	renter-occupied, based on the most recent estimates or experimental estimates provided by 
31.20 	the American Community Survey of the United States Census Bureau;
31.21 	(3) who is financing the purchase of an eligible property with an interest-free, fee-based 
31.22 	mortgage; and
31.23 	(4) who is a first-time homebuyer as defined by Code of Federal Regulations, title 24, 
31.24 	section 92.2.
31.25 		Subd. 3.Eligible property. (a) For the purposes of this section, an "eligible property" 
31.26 	means residential real property that is a condominium, a townhouse, a single-family home, 
31.27 	a manufactured home titled as real property, or another building containing up to four 
31.28 	dwelling units.
31.29 	(b) An eligible property may include property subject to a ground lease with a community 
31.30 	land trust, property on Indian Trust Land, or property participating in a shared equity 
31.31 	homeownership program.
32.1 		Subd. 4.Use of funds. NeighborWorks Home Partners shall use the money appropriated 
32.2 	to this program to provide forgivable grants of down payment assistance not to exceed 30 
32.3 	percent of the price of the eligible property that an eligible homebuyer seeks to purchase. 
32.4 	NeighborWorks Home Partners shall provide grants to eligible homebuyers using no-interest, 
32.5 	fee-based loans to finance the purchase of eligible properties. In making grants, 
32.6 	NeighborWorks Home Partners shall determine the circumstances, terms, and conditions 
32.7 	under which all or any portion of the grant will be repaid and shall determine the appropriate 
32.8 	security required for a repayment. The commissioner must ensure grant awards are distributed 
32.9 	statewide. The administrative fees for operating the program shall not exceed five percent 
32.10 	of the appropriation. An eligible homebuyer may use the funds in conjunction with any 
32.11 	other funding programs.
32.12 		Subd. 5.Conditions of receiving a grant. (a) To qualify for assistance under this section, 
32.13 	an eligible homebuyer must:
32.14 	(1) complete an approved homebuyer education course prior to signing a purchase 
32.15 	agreement;
32.16 	(2) complete an approved landlord education course prior to signing a purchase agreement 
32.17 	if the property being purchased contains more than one dwelling unit;
32.18 	(3) contribute a minimum of $1,000 to down payment or closing costs; and
32.19 	(4) occupy the purchased property as the homebuyer's primary residence.
32.20 	(b) NeighborWorks Home Partners may establish additional requirements to ensure that 
32.21 	program participants comply with this subdivision.
32.22 		Subd. 6.Reports. By January 15 and July 15 each year, NeighborWorks Home Partners 
32.23 	must report to the chairs and ranking minority members of the legislative committees with 
32.24 	jurisdiction over housing finance and policy the following information:
32.25 	(1) the number and amount of grants issued;
32.26 	(2) the median grant amount;
32.27 	(3) the number and amount of grants issued by race or ethnic categories;
32.28 	(4) the median home purchase price;
32.29 	(5) the total amount returned to the fund; and
32.30 	(6) the number and amount of grants issued by county.

33.1 	Sec. 13. MANUFACTURED HOME LENDING GRANTS.
 33.2 		Subdivision 1.Program established. The commissioner of the Minnesota Housing 
33.3 	Finance Agency must award a grant to an organization for manufactured home lending 
33.4 	services under subdivision 2.
33.5 		Subd. 2.Eligible services. The commissioner may award a grant under this section to 
33.6 	an organization providing lending funds for the following services:
33.7 	(1) new manufactured home financing programs;
33.8 	(2) manufactured home down payment assistance; or
33.9 	(3) manufactured home repair, renovation, removal, and site preparation financing 
33.10 	programs.
33.11 		Subd. 3.Eligible organization. To be eligible for a grant under this section, a nonprofit 
33.12 	organization must:
33.13 	(1) qualify for tax exempt status under United States Code, title 26, section 501(c)(3);
33.14 	(2) have primary operations located in Minnesota;
33.15 	(3) be a qualified nonprofit lender or certified as a community development financial 
33.16 	institution by the United States Department of the Treasury; and
33.17 	(4) serve low-income populations in manufactured home communities owned by residents, 
33.18 	cooperatives, nonprofits, or municipalities.
33.19 		Subd. 4.Commissioner duties. The commissioner shall develop the forms, applications, 
33.20 	and reporting requirements for use by eligible organizations. In developing these materials, 
33.21 	the commissioner shall consult with manufactured housing cooperatives, resident-owned 
33.22 	manufactured home communities, and nonprofit organizations working with manufactured 
33.23 	housing cooperatives and resident-owned communities.
33.24 		Subd. 5.Loan payments and interest. Interest earned and repayments of principal from 
33.25 	loans issued under this section must be used for the purposes of this section.

33.26 	ARTICLE 3
33.27 	BONDING AUTHORITY

33.28 	Section 1. Minnesota Statutes 2022, section 462A.22, subdivision 1, is amended to read:
33.29 		Subdivision 1.Debt ceiling. The aggregate principal amount of general obligation bonds 
33.30 	and notes which are outstanding at any time, excluding the principal amount of any bonds 
34.1 	and notes refunded by the issuance of new bonds or notes, shall not exceed the sum of 
34.2 	$5,000,000,000.

34.3 	Sec. 2. Minnesota Statutes 2022, section 462A.36, is amended by adding a subdivision to 
34.4 	read:
34.5 		Subd. 2a.Refunding bonds. (a) The agency may issue nonprofit housing bonds in one 
34.6 	or more series to refund bonds authorized in subdivision 2. The amount of refunding nonprofit 
34.7 	housing bonds that may be issued from time to time will not be subject to the dollar limitation 
34.8 	contained in subdivision 2 nor will those bonds be included in computing the amount of 
34.9 	bonds that may be issued within that dollar limitation.
34.10 	(b) In the refunding of nonprofit housing bonds, each bond must be called for redemption 
34.11 	prior to its maturity in accordance with its terms no later than the earliest date on which it 
34.12 	may be redeemed. No refunding bonds may be issued unless as of the date of the refunding 
34.13 	bonds the present value of the dollar amount of the debt service on the refunding bonds, 
34.14 	computed to their stated maturity dates, is lower than the present value of the dollar amount 
34.15 	of debt service on all nonprofit housing bonds refunded computed to their stated maturity 
34.16 	dates. For purposes of this subdivision, "present value of the dollar amount of debt service" 
34.17 	means the dollar amount of debt service to be paid, discounted to the nominal date of the 
34.18 	refunding bonds at a rate equal to the yield on the refunding bonds.
34.19 	(c) If as a result of the issuance of refunding bonds the amount of debt service for an 
34.20 	annual period is less than the amount transferred by the commissioner of management and 
34.21 	budget to pay debt service for that annual period, the agency must deduct the excess amount 
34.22 	from the actual amount of debt service on those bonds certified for the next subsequent 
34.23 	annual period.

34.24 	Sec. 3. Minnesota Statutes 2022, section 462A.36, subdivision 4, is amended to read:
34.25 		Subd. 4.Appropriation; payment to agency or trustee. (a) The agency must certify 
34.26 	annually to the commissioner of management and budget the actual amount of annual debt 
34.27 	service on each series of bonds issued under subdivision 2.
34.28 	(b) Each July 15, beginning in 2009 and through 2031, if any nonprofit housing bonds 
34.29 	issued under subdivision 2, or nonprofit housing bonds issued to refund those bonds, remain 
34.30 	outstanding, the commissioner of management and budget must transfer to the nonprofit 
34.31 	housing bond account established under section 462A.21, subdivision 32, the amount 
34.32 	certified under paragraph (a), not to exceed $2,400,000 annually. The amounts necessary 
35.1 	to make the transfers are appropriated from the general fund to the commissioner of 
35.2 	management and budget.
35.3 	(c) The agency may pledge to the payment of the nonprofit housing bonds the payments 
35.4 	to be made by the state under this section.

35.5 	Sec. 4. Minnesota Statutes 2022, section 462A.37, is amended by adding a subdivision to 
35.6 	read:
35.7 		Subd. 2k.Refunding bonds. (a) The agency may issue housing infrastructure bonds in 
35.8 	one or more series to refund bonds authorized in this section. The amount of refunding 
35.9 	housing infrastructure bonds that may be issued from time to time will not be subject to the 
35.10 	dollar limitation contained in any of the authorizations in this section nor will those bonds 
35.11 	be included in computing the amount of bonds that may be issued within those dollar 
35.12 	limitations.
35.13 	(b) In the refunding of housing infrastructure bonds, each bond must be called for 
35.14 	redemption prior to its maturity in accordance with its terms no later than the earliest date 
35.15 	on which it may be redeemed. No refunding bonds may be issued unless as of the date of 
35.16 	the refunding bonds the present value of the dollar amount of the debt service on the 
35.17 	refunding bonds, computed to their stated maturity dates, is lower than the present value of 
35.18 	the dollar amount of debt service on all housing infrastructure bonds refunded computed to 
35.19 	their stated maturity dates. For purposes of this subdivision, "present value of the dollar 
35.20 	amount of debt service" means the dollar amount of debt service to be paid, discounted to 
35.21 	the nominal date of the refunding bonds at a rate equal to the yield on the refunding bonds.
35.22 	(c) If as a result of the issuance of refunding bonds the amount of debt service for an 
35.23 	annual period is less than the amount transferred by the commissioner of management and 
35.24 	budget to pay debt service for that annual period, the agency must deduct the excess amount 
35.25 	from the actual amount of debt service on those bonds certified for the next subsequent 
35.26 	annual period.

35.27 	Sec. 5. Minnesota Statutes 2022, section 462A.37, subdivision 4, is amended to read:
35.28 		Subd. 4.Appropriation; payment to agency or trustee. (a) The agency must certify 
35.29 	annually to the commissioner of management and budget the actual amount of annual debt 
35.30 	service on each series of bonds issued under subdivision 2.
35.31 	(b) Each July 15, beginning in 2013 and through 2035, if any housing infrastructure 
35.32 	bonds issued under subdivision 2, or housing infrastructure bonds issued to refund those 
36.1 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
36.2 	the affordable housing infrastructure bond account established under section 462A.21, 
36.3 	subdivision 33, the amount certified under paragraph (a), not to exceed $2,200,000 annually. 
36.4 	The amounts necessary to make the transfers are appropriated from the general fund to the 
36.5 	commissioner of management and budget.
36.6 	(c) The agency may pledge to the payment of the housing infrastructure bonds the 
36.7 	payments to be made by the state under this section.

36.8 	Sec. 6. Minnesota Statutes 2022, section 462A.37, subdivision 5, is amended to read:
36.9 		Subd. 5.Additional appropriation. (a) The agency must certify annually to the 
36.10 	commissioner of management and budget the actual amount of annual debt service on each 
36.11 	series of bonds issued under this section.
36.12 	(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure 
36.13 	bonds issued under subdivision 2a, or housing infrastructure bonds issued to refund those 
36.14 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
36.15 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
36.16 	the amount certified under paragraph (a), not to exceed $6,400,000 annually. The amounts 
36.17 	necessary to make the transfers are appropriated from the general fund to the commissioner 
36.18 	of management and budget.
36.19 	(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure 
36.20 	bonds issued under subdivision 2b, or housing infrastructure bonds issued to refund those 
36.21 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
36.22 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
36.23 	the amount certified under paragraph (a), not to exceed $800,000 annually. The amounts 
36.24 	necessary to make the transfers are appropriated from the general fund to the commissioner 
36.25 	of management and budget.
36.26 	(d) Each July 15, beginning in 2019 and through 2040, if any housing infrastructure 
36.27 	bonds issued under subdivision 2c, or housing infrastructure bonds issued to refund those 
36.28 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
36.29 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
36.30 	the amount certified under paragraph (a), not to exceed $2,800,000 annually. The amounts 
36.31 	necessary to make the transfers are appropriated from the general fund to the commissioner 
36.32 	of management and budget.
37.1 	(e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure 
37.2 	bonds issued under subdivision 2d, or housing infrastructure bonds issued to refund those 
37.3 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
37.4 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
37.5 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
37.6 	appropriated from the general fund to the commissioner of management and budget.
37.7 	(f) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure 
37.8 	bonds issued under subdivision 2e, or housing infrastructure bonds issued to refund those 
37.9 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
37.10 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
37.11 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
37.12 	appropriated from the general fund to the commissioner of management and budget.
37.13 	(g) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure 
37.14 	bonds issued under subdivision 2f, or housing infrastructure bonds issued to refund those 
37.15 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
37.16 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
37.17 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
37.18 	appropriated from the general fund to the commissioner of management and budget.
37.19 	(h) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure 
37.20 	bonds issued under subdivision 2g, or housing infrastructure bonds issued to refund those 
37.21 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
37.22 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
37.23 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
37.24 	appropriated from the general fund to the commissioner of management and budget.
37.25 	(i) Each July 15, beginning in 2023 and through 2044, if any housing infrastructure 
37.26 	bonds issued under subdivision 2h, or housing infrastructure bonds issued to refund those 
37.27 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
37.28 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
37.29 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
37.30 	appropriated from the general fund to the commissioner of management and budget.
37.31 	(j) The agency may pledge to the payment of the housing infrastructure bonds the 
37.32 	payments to be made by the state under this section.

38.1 	ARTICLE 4
38.2 	ELIGIBILITY AND USES

38.3 	Section 1. Minnesota Statutes 2022, section 462A.05, subdivision 14, is amended to read:
38.4 		Subd. 14.Rehabilitation loans. It may agree to purchase, make, or otherwise participate 
38.5 	in the making, and may enter into commitments for the purchase, making, or participation 
38.6 	in the making, of eligible loans for rehabilitation, with terms and conditions as the agency 
38.7 	deems advisable, to persons and families of low and moderate income, and to owners of 
38.8 	existing residential housing for occupancy by such persons and families, for the rehabilitation 
38.9 	of existing residential housing owned by them. Rehabilitation may include the addition or 
38.10 	rehabilitation of a detached accessory dwelling unit. The loans may be insured or uninsured 
38.11 	and may be made with security, or may be unsecured, as the agency deems advisable. The 
38.12 	loans may be in addition to or in combination with long-term eligible mortgage loans under 
38.13 	subdivision 3. They may be made in amounts sufficient to refinance existing indebtedness 
38.14 	secured by the property, if refinancing is determined by the agency to be necessary to permit 
38.15 	the owner to meet the owner's housing cost without expending an unreasonable portion of 
38.16 	the owner's income thereon. No loan for rehabilitation shall be made unless the agency 
38.17 	determines that the loan will be used primarily to make the housing more desirable to live 
38.18 	in, to increase the market value of the housing, for compliance with state, county or municipal 
38.19 	building, housing maintenance, fire, health or similar codes and standards applicable to 
38.20 	housing, or to accomplish energy conservation related improvements. In unincorporated 
38.21 	areas and municipalities not having codes and standards, the agency may, solely for the 
38.22 	purpose of administering the provisions of this chapter, establish codes and standards. No 
38.23 	loan under this subdivision for the rehabilitation of owner-occupied housing shall be denied 
38.24 	solely because the loan will not be used for placing the owner-occupied residential housing 
38.25 	in full compliance with all state, county, or municipal building, housing maintenance, fire, 
38.26 	health, or similar codes and standards applicable to housing. Rehabilitation loans shall be 
38.27 	made only when the agency determines that financing is not otherwise available, in whole 
38.28 	or in part, from private lenders upon equivalent terms and conditions. Accessibility 
38.29 	rehabilitation loans authorized under this subdivision may be made to eligible persons and 
38.30 	families without limitations relating to the maximum incomes of the borrowers if:
38.31 	(1) the borrower or a member of the borrower's family requires a level of care provided 
38.32 	in a hospital, skilled nursing facility, or intermediate care facility for persons with 
38.33 	developmental disabilities;
38.34 	(2) home care is appropriate; and
39.1 	(3) the improvement will enable the borrower or a member of the borrower's family to 
39.2 	reside in the housing.
39.3 	The agency may waive any requirement that the housing units in a residential housing 
39.4 	development be rented to persons of low and moderate income if the development consists 
39.5 	of four or less fewer dwelling units, one of which is occupied by the owner.

39.6 	Sec. 2. Minnesota Statutes 2022, section 462A.05, is amended by adding a subdivision to 
39.7 	read:
39.8 		Subd. 42.Housing disparities. The agency must prioritize its use of appropriations for 
39.9 	any program under this chapter to serve households most affected by housing disparities.

39.10 	Sec. 3. Minnesota Statutes 2022, section 462A.05, is amended by adding a subdivision to 
39.11 	read:
39.12 		Subd. 43.Special purpose credit program. The agency may establish special purpose 
39.13 	credit programs to assist one or more economically disadvantaged classes of persons in 
39.14 	order to address the effects of historic and current discrimination which resulted in limiting 
39.15 	access to housing credit by persons on the basis of race, color, ethnicity, or national origin. 
39.16 	A special purpose credit program may include a wide variety of remedies, including but 
39.17 	not limited to loans or other financial assistance, based on current, documented need as 
39.18 	determined by the agency.

39.19 	Sec. 4. Minnesota Statutes 2022, section 462A.05, is amended by adding a subdivision to 
39.20 	read:
39.21 		Subd. 44.Indian Tribes. Notwithstanding any other provision in this chapter, at its 
39.22 	discretion the agency may make any federally recognized Indian Tribe in Minnesota, or 
39.23 	their associated Tribally Designated Housing Entity (TDHE) as defined by United States 
39.24 	Code, title 25, section 4103(22), eligible for funding authorized under this chapter.

39.25 	Sec. 5. Minnesota Statutes 2022, section 462A.07, is amended by adding a subdivision to 
39.26 	read:
39.27 		Subd. 17.Translation services. It shall provide meaningful access to agency programs 
39.28 	and services for individuals who have limited English proficiency. This may include 
39.29 	providing, at the individual's request, interpretation or translation services in the individual's 
39.30 	preferred language. The agency will continue to follow all federal and state laws, regulations, 
39.31 	and guidance regarding limited English proficiency.

40.1 	Sec. 6. Minnesota Statutes 2022, section 462A.2035, subdivision 1b, is amended to read:
40.2 		Subd. 1b.Manufactured home park infrastructure grants and loans. Eligible 
40.3 	recipients may use manufactured home park infrastructure grants and loans under this 
40.4 	program for:
40.5 	(1) acquisition of and improvements in manufactured home parks; and
40.6 	(2) infrastructure, including storm shelters and community facilities.

40.7 	Sec. 7. Minnesota Statutes 2022, section 462A.204, subdivision 3, is amended to read:
40.8 		Subd. 3.Set aside. At least one grant must be awarded in an area located outside of the 
40.9 	metropolitan area. A county, a group of contiguous counties jointly acting together, a Tribe, 
40.10 	a group of Tribes, or a community-based nonprofit organization with a sponsoring resolution 
40.11 	from each of the county boards of the counties located within its operating jurisdiction may 
40.12 	apply for and receive grants for areas located outside the metropolitan area.

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

40.14 	Sec. 8. Minnesota Statutes 2022, section 462A.21, subdivision 3b, is amended to read:
40.15 		Subd. 3b.Capacity building grants. It may make capacity building grants to nonprofit 
40.16 	organizations, local government units, Indian tribes, and Indian tribal organizations to 
40.17 	expand their capacity to provide affordable housing and housing-related services. The grants 
40.18 	may be used to assess housing needs and to develop and implement strategies to meet those 
40.19 	needs, including but not limited to the creation or preservation of affordable housing, 
40.20 	prepurchase and postpurchase counseling and associated administrative costs, and the linking 
40.21 	of supportive services to the housing. The agency shall adopt rules, policies, and procedures
40.22 	specifying the eligible uses of grant money. Funding priority must may be given to those 
40.23 	applicants that include low-income persons in their membership, have provided 
40.24 	housing-related services to low-income people, and demonstrate a local commitment of 
40.25 	local resources, which may include in-kind contributions. Grants under this subdivision 
40.26 	may be made only with specific appropriations by the legislature.

40.27 	Sec. 9. Minnesota Statutes 2022, section 462A.33, subdivision 2, is amended to read:
40.28 		Subd. 2.Eligible recipients. Challenge grants or loans may be made to a city, a federally 
40.29 	recognized American Indian Tribe or subdivision located in Minnesota, a Tribal housing 
40.30 	corporation, a private developer, a nonprofit organization, a school district, a cooperative 
40.31 	unit, as defined in section 123A.24, subdivision 2, a charter school, or the owner of the 
41.1 	housing, including individuals. For the purpose of this section, "city" has the meaning given 
41.2 	it in section 462A.03, subdivision 21. To the extent practicable, grants and loans shall be 
41.3 	made so that an approximately equal number of housing units are financed in the metropolitan 
41.4 	area and in the nonmetropolitan area.

41.5 	Sec. 10. Minnesota Statutes 2022, section 462A.33, is amended by adding a subdivision 
41.6 	to read:
41.7 		Subd. 9.Grant funding to schools. A school district; a cooperative unit, as defined in 
41.8 	section 123A.24, subdivision 2; or a charter school may receive funding under this section 
41.9 	in the form of a grant less than $100,000. A school district, intermediate district, or charter 
41.10 	school that uses a grant under this section to construct a home for owner occupancy must 
41.11 	require the future occupant to participate in the homeownership education counseling and 
41.12 	training program under section 462A.209.

41.13 	Sec. 11. Minnesota Statutes 2022, section 462A.37, subdivision 1, is amended to read:
41.14 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
41.15 	the meanings given.
41.16 	(b) "Abandoned property" has the meaning given in section 117.025, subdivision 5.
41.17 	(c) "Community land trust" means an entity that meets the requirements of section 
41.18 	462A.31, subdivisions 1 and 2.
41.19 	(d) "Debt service" means the amount payable in any fiscal year of principal, premium, 
41.20 	if any, and interest on housing infrastructure bonds and the fees, charges, and expenses 
41.21 	related to the bonds.
41.22 	(e) "Foreclosed property" means residential property where foreclosure proceedings 
41.23 	have been initiated or have been completed and title transferred or where title is transferred 
41.24 	in lieu of foreclosure.
41.25 	(f) "Housing infrastructure bonds" means bonds issued by the agency under this chapter 
41.26 	that:
41.27 	(1) are qualified 501(c)(3) bonds, within the meaning of section 145(a) of the Internal 
41.28 	Revenue Code;
41.29 	(2) finance qualified residential rental projects within the meaning of section 142(d) of 
41.30 	the Internal Revenue Code; or
42.1 	(3) finance the construction or rehabilitation of single-family houses that qualify for 
42.2 	mortgage financing within the meaning of section 143 of the Internal Revenue Code; or
42.3 	(4) (3) are tax-exempt bonds that are not private activity bonds, within the meaning of 
42.4 	section 141(a) of the Internal Revenue Code, for the purpose of financing or refinancing 
42.5 	affordable housing authorized under this chapter.
42.6 	(g) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.
42.7 	(h) "Senior" means a person 55 years of age or older with an annual income not greater 
42.8 	than 50 percent of:.
42.9 	(1) the metropolitan area median income for persons in the metropolitan area; or
42.10 	(2) the statewide median income for persons outside the metropolitan area.
42.11 	(i) "Senior household" means a household with one or more senior members and with 
42.12 	an annual combined income not greater than 50 percent of:
42.13 	(1) the metropolitan area median income for persons in the metropolitan area; or
42.14 	(2) the statewide median income for persons outside the metropolitan area.
42.15 	(i) (j) "Senior housing" means housing intended and operated for occupancy by at least 
42.16 	one senior per unit senior households with at least 80 percent of the units occupied by at 
42.17 	least one senior per unit senior households, and for which there is publication of, and 
42.18 	adherence to, policies and procedures that demonstrate an intent by the owner or manager 
42.19 	to provide housing for seniors. Senior housing may be developed in conjunction with and 
42.20 	as a distinct portion of mixed-income senior housing developments that use a variety of 
42.21 	public or private financing sources.
42.22 	(j) (k) "Supportive housing" means housing that is not time-limited and provides or 
42.23 	coordinates with linkages to services necessary for residents to maintain housing stability 
42.24 	and maximize opportunities for education and employment.

42.25 	Sec. 12. Minnesota Statutes 2022, section 462A.37, subdivision 2, is amended to read:
42.26 		Subd. 2.Authorization. (a) The agency may issue up to $30,000,000 in aggregate 
42.27 	principal amount of housing infrastructure bonds in one or more series to which the payment 
42.28 	made under this section may be pledged. The housing infrastructure bonds authorized in 
42.29 	this subdivision may be issued to fund loans, or grants for the purposes of clause clauses
42.30 	(4) and (7), on terms and conditions the agency deems appropriate, made for one or more 
42.31 	of the following purposes:
43.1 	(1) to finance the costs of the construction, acquisition, and rehabilitation of supportive 
43.2 	housing for individuals and families who are without a permanent residence;
43.3 	(2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned 
43.4 	housing to be used for affordable rental housing and the costs of new construction of rental 
43.5 	housing on abandoned or foreclosed property where the existing structures will be demolished 
43.6 	or removed;
43.7 	(3) to finance that portion of the costs of acquisition of property that is attributable to 
43.8 	the land to be leased by community land trusts to low- and moderate-income home buyers;
43.9 	(4) to finance the acquisition, improvement, and infrastructure of manufactured home 
43.10 	parks under section 462A.2035, subdivision 1b;
43.11 	(5) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction 
43.12 	of senior housing;
43.13 	(6) to finance the costs of acquisition and, rehabilitation, and replacement of federally 
43.14 	assisted rental housing and for the refinancing of costs of the construction, acquisition, and 
43.15 	rehabilitation of federally assisted rental housing, including providing funds to refund, in 
43.16 	whole or in part, outstanding bonds previously issued by the agency or another government 
43.17 	unit to finance or refinance such costs; and
43.18 	(7) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction 
43.19 	of single-family housing.; and
43.20 	(8) to finance the costs of construction, acquisition, and rehabilitation of permanent 
43.21 	housing that is affordable to households with incomes at or below 50 percent of the area 
43.22 	median income for the applicable county or metropolitan area as published by the Department 
43.23 	of Housing and Urban Development, as adjusted for household size.
43.24 	(b) Among comparable proposals for permanent supportive housing, preference shall 
43.25 	be given to permanent supportive housing for veterans and other individuals or families 
43.26 	who:
43.27 	(1) either have been without a permanent residence for at least 12 months or at least four 
43.28 	times in the last three years; or
43.29 	(2) are at significant risk of lacking a permanent residence for 12 months or at least four 
43.30 	times in the last three years.
43.31 	(c) Among comparable proposals for senior housing, the agency must give priority to 
43.32 	requests for projects that:
44.1 	(1) demonstrate a commitment to maintaining the housing financed as affordable to 
44.2 	seniors senior households;
44.3 	(2) leverage other sources of funding to finance the project, including the use of 
44.4 	low-income housing tax credits;
44.5 	(3) provide access to services to residents and demonstrate the ability to increase physical 
44.6 	supports and support services as residents age and experience increasing levels of disability;
44.7 	and
44.8 	(4) provide a service plan containing the elements of clause (3) reviewed by the housing 
44.9 	authority, economic development authority, public housing authority, or community 
44.10 	development agency that has an area of operation for the jurisdiction in which the project 
44.11 	is located; and
44.12 	(5) include households with incomes that do not exceed 30 percent of the median 
44.13 	household income for the metropolitan area.
44.14 	(d) To the extent practicable, the agency shall balance the loans made between projects 
44.15 	in the metropolitan area and projects outside the metropolitan area. Of the loans made to 
44.16 	projects outside the metropolitan area, the agency shall, to the extent practicable, balance 
44.17 	the loans made between projects in counties or cities with a population of 20,000 or less, 
44.18 	as established by the most recent decennial census, and projects in counties or cities with 
44.19 	populations in excess of 20,000.
44.20 	(e) Among comparable proposals for permanent housing, the agency must give preference 
44.21 	to projects that will provide housing that is affordable to households at or below 30 percent 
44.22 	of the area median income.
44.23 	(f) If a loan recipient uses the loan for new construction or substantial rehabilitation as 
44.24 	defined by the agency on a building containing more than four units, the loan recipient must 
44.25 	construct, convert, or otherwise adapt the building to include:
44.26 	(1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
44.27 	accessible units, as defined by section 1002 of the current State Building Code Accessibility 
44.28 	Provisions for Dwelling Units in Minnesota, and include at least one roll-in shower; and
44.29 	(2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
44.30 	sensory-accessible units that include:
44.31 	(A) soundproofing between shared walls for first and second floor units;
44.32 	(B) no florescent lighting in units and common areas;
45.1 	(C) low-fume paint;
45.2 	(D) low-chemical carpet; and
45.3 	(E) low-chemical carpet glue in units and common areas.
45.4 	Nothing in this paragraph relieves a project funded by the agency from meeting other 
45.5 	applicable accessibility requirements.

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

45.7 	Sec. 13. Minnesota Statutes 2022, section 462A.38, subdivision 1, is amended to read:
45.8 		Subdivision 1.Establishment. A workforce and affordable homeownership development 
45.9 	program is established to award homeownership development grants to cities, counties, 
45.10 	Tribal governments, nonprofit organizations, cooperatives created under chapter 308A or 
45.11 	308B, and community land trusts created for the purposes outlined in section 462A.31, 
45.12 	subdivision 1, for development of workforce and affordable homeownership projects. The 
45.13 	purpose of the program is to increase the supply of workforce and affordable, owner-occupied 
45.14 	multifamily or single-family housing throughout Minnesota.

45.15 	Sec. 14. Minnesota Statutes 2022, section 462A.39, subdivision 2, is amended to read:
45.16 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
45.17 	meanings given.
45.18 	(b) "Eligible project area" means a home rule charter or statutory city located outside 
45.19 	of the a metropolitan area county as defined in section 473.121, subdivision 2 4, with a 
45.20 	population exceeding 500; a community that has a combined population of 1,500 residents 
45.21 	located within 15 miles of a home rule charter or statutory city located outside the a
45.22 	metropolitan area county as defined in section 473.121, subdivision 2 4; federally recognized 
45.23 	Tribal reservations; or an area served by a joint county-city economic development authority.
45.24 	(c) "Joint county-city economic development authority" means an economic development 
45.25 	authority formed under Laws 1988, chapter 516, section 1, as a joint partnership between 
45.26 	a city and county and excluding those established by the county only.
45.27 	(d) "Market rate residential rental properties" means properties that are rented at market 
45.28 	value, including new modular homes, new manufactured homes, and new manufactured 
45.29 	homes on leased land or in a manufactured home park, and may include rental developments 
45.30 	that have a portion of income-restricted units.
46.1 	(e) "Qualified expenditure" means expenditures for market rate residential rental 
46.2 	properties including acquisition of property; construction of improvements; and provisions 
46.3 	of loans or subsidies, grants, interest rate subsidies, public infrastructure, and related financing 
46.4 	costs.

46.5 	Sec. 15. Minnesota Statutes 2022, section 462A.39, subdivision 5, is amended to read:
46.6 		Subd. 5.Allocation. The amount of a grant or deferred loans may not exceed 25 50
46.7 	percent of the rental housing development project cost. The commissioner shall not award 
46.8 	a grant or deferred loans to a city an eligible project area without certification by the city
46.9 	eligible project area that the amount of the grant or deferred loans shall be matched by a 
46.10 	local unit of government, business, or nonprofit organization, or federally recognized Tribe,
46.11 	with $1 for every $2 provided in grant or deferred loans funds.

46.12 	Sec. 16. Laws 2021, First Special Session chapter 8, article 1, section 3, subdivision 11, 
46.13 	is amended to read:

46.14	Subd. 11.Affordable Rental Investment Fund
 		4,218,000
		4,218,000
	
46.15 	(a) This appropriation is for the affordable 
46.16 	rental investment fund program under 
46.17 	Minnesota Statutes, section 462A.21, 
46.18 	subdivision 8b, to finance the acquisition, 
46.19 	rehabilitation, replacement, and debt 
46.20 	restructuring of federally assisted rental 
46.21 	property and for making equity take-out loans 
46.22 	under Minnesota Statutes, section 462A.05, 
46.23 	subdivision 39.
46.24 	(b) The owner of federally assisted rental 
46.25 	property must agree to participate in the 
46.26 	applicable federally assisted housing program 
46.27 	and to extend any existing low-income 
46.28 	affordability restrictions on the housing for 
46.29 	the maximum term permitted.
46.30 	(c) The appropriation also may be used to 
46.31 	finance the acquisition, rehabilitation, and debt 
46.32 	restructuring of existing supportive housing 
46.33 	properties and naturally occurring affordable 
47.1 	housing as determined by the commissioner. 
47.2 	For purposes of this paragraph, "supportive 
47.3 	housing" means affordable rental housing with 
47.4 	links to services necessary for individuals, 
47.5 	youth, and families with children to maintain 
47.6 	housing stability.

47.7 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2021.

47.8 	ARTICLE 5
47.9 	METROPOLITAN SALES TAX AND HOUSING AID

47.10 	Section 1. Minnesota Statutes 2022, section 297A.99, subdivision 1, is amended to read:
47.11 		Subdivision 1.Authorization; scope. (a) A political subdivision of this state may impose 
47.12 	a general sales tax (1) under section 297A.992, (2) under section 297A.993 297A.9925, (3)
47.13 	under section 297A.993, (4) if permitted by special law, or (4) (5) if the political subdivision 
47.14 	enacted and imposed the tax before January 1, 1982, and its predecessor provision.
47.15 	(b) This section governs the imposition of a general sales tax by the political subdivision. 
47.16 	The provisions of this section preempt the provisions of any special law:
47.17 	(1) enacted before June 2, 1997, or
47.18 	(2) enacted on or after June 2, 1997, that does not explicitly exempt the special law 
47.19 	provision from this section's rules by reference.
47.20 	(c) This section does not apply to or preempt a sales tax on motor vehicles. Beginning 
47.21 	July 1, 2019, no political subdivision may impose a special excise tax on motor vehicles 
47.22 	unless it is imposed under section 297A.993.
47.23 	(d) A political subdivision may not advertise or expend funds for the promotion of a 
47.24 	referendum to support imposing a local sales tax and may only spend funds related to 
47.25 	imposing a local sales tax to:
47.26 	(1) conduct the referendum;
47.27 	(2) disseminate information included in the resolution adopted under subdivision 2, but 
47.28 	only if the disseminated information includes a list of specific projects and the cost of each 
47.29 	individual project;
48.1 	(3) provide notice of, and conduct public forums at which proponents and opponents on 
48.2 	the merits of the referendum are given equal time to express their opinions on the merits of 
48.3 	the referendum;
48.4 	(4) provide facts and data on the impact of the proposed local sales tax on consumer 
48.5 	purchases; and
48.6 	(5) provide facts and data related to the individual programs and projects to be funded 
48.7 	with the local sales tax.

48.8 	Sec. 2. [297A.9925] METROPOLITAN REGION SALES AND USE TAX.
48.9 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
48.10 	the meanings given.
48.11 	(b) "Metropolitan Council" or "council" means the Metropolitan Council established by 
48.12 	section 473.123.
48.13 	(c) "Metropolitan county" has the meaning given in section 473.121, subdivision 4.
48.14 	(d) "Metropolitan sales tax" means the metropolitan region sales and use tax imposed 
48.15 	under this section.
48.16 		Subd. 2.Sales tax imposition; rate. Notwithstanding section 473.123, subdivision 1, 
48.17 	the Metropolitan Council must impose a metropolitan region sales and use tax at a rate of 
48.18 	0.25 percent on retail sales made in the metropolitan counties or to a destination in the 
48.19 	metropolitan counties.
48.20 		Subd. 3.Administration; collection; enforcement. Except as otherwise provided in 
48.21 	this section, the provisions of section 297A.99, subdivisions 4, and 6 to 12a, govern the 
48.22 	administration, collection, and enforcement of the metropolitan sales tax.
48.23 		Subd. 4.Distribution. Notwithstanding section 297A.94, proceeds of the metropolitan 
48.24 	sales tax are distributed:
48.25 	(1) 25 percent to the state rent assistance account under section 462A.2095;
48.26 	(2) 25 percent to the metropolitan city aid account in the housing assistance fund under 
48.27 	section 477A.37; and
48.28 	(3) 50 percent to the metropolitan county aid account in the housing assistance fund 
48.29 	under section 477A.37.

49.1 	EFFECTIVE DATE; APPLICATION. This section is effective for sales and purchases 
49.2 	made after October 1, 2023, and applies in the metropolitan counties, as defined by Minnesota 
49.3 	Statutes, section 473.121, subdivision 4.

49.4 	Sec. 3. [477A.35] LOCAL AFFORDABLE HOUSING AID.
49.5 		Subdivision 1.Purpose. The purpose of this section is to help metropolitan local 
49.6 	governments to develop and preserve affordable housing within their jurisdictions in order 
49.7 	to keep families from losing housing and to help those experiencing homelessness find 
49.8 	housing.
49.9 		Subd. 2.Definitions. For the purposes of this section, the following terms have the 
49.10 	meanings given:
49.11 	(1) "city distribution factor" means the number of households in a tier I city that are 
49.12 	cost-burdened divided by the total number of households that are cost-burdened in tier I 
49.13 	cities. The number of cost-burdened households shall be determined using the most recent 
49.14 	estimates or experimental estimates provided by the American Community Survey of the 
49.15 	United States Census Bureau as of May 1 of the aid calculation year;
49.16 	(2) "cost-burdened household" means a household in which gross rent is 30 percent or 
49.17 	more of household income or in which homeownership costs are 30 percent or more of 
49.18 	household income;
49.19 	(3) "county distribution factor" means the number of households in a county that are 
49.20 	cost-burdened divided by the total number of households in metropolitan counties that are 
49.21 	cost-burdened. The number of cost-burdened households shall be determined using the most 
49.22 	recent estimates or experimental estimates provided by the American Community Survey 
49.23 	of the United States Census Bureau as of May 1 of the aid calculation year;
49.24 	(4) "metropolitan area" has the meaning given in section 473.121, subdivision 2;
49.25 	(5) "metropolitan county" has the meaning given in section 473.121, subdivision 4;
49.26 	(6) "population" has the meaning given in section 477A.011, subdivision 3; and
49.27 	(7) "tier I city" means a statutory or home rule charter city that is a city of the first, 
49.28 	second, or third class and is located in a metropolitan county.
49.29 		Subd. 3.Distribution. (a) The commissioner of revenue shall calculate the amount of 
49.30 	aid to distribute to each county under this section as the sum of:
49.31 	(1) three percent of the total amount available to counties under this section; plus
50.1 	(2) 79 percent of the total amount available to counties under this section, multiplied by 
50.2 	the county distribution factor.
50.3 	(b) The commissioner of revenue shall calculate the amount of aid to distribute to each 
50.4 	tier I city under this section as:
50.5 	(1) the tier I city's city distribution factor; multiplied by
50.6 	(2) the total amount available to cities under this section.
50.7 		Subd. 4.Qualifying projects. (a) Qualifying projects shall include: (1) emergency rental 
50.8 	assistance for households earning less than 80 percent of area median income as determined 
50.9 	by the United States Department of Housing and Urban Development; (2) financial support 
50.10 	to nonprofit affordable housing providers in their mission to provide safe, dignified, 
50.11 	affordable and supportive housing; and (3) projects designed for the purpose of construction, 
50.12 	acquisition, rehabilitation, demolition or removal of existing structures, construction 
50.13 	financing, permanent financing, interest rate reduction, refinancing, and gap financing of 
50.14 	housing to provide affordable housing to households that have incomes which do not exceed, 
50.15 	for homeownership projects, 115 percent of the greater of state or area median income as 
50.16 	determined by the United States Department of Housing and Urban Development, and for 
50.17 	rental housing projects, 80 percent of the greater of state or area median income as determined 
50.18 	by the United States Department of Housing and Urban Development, except that the housing 
50.19 	developed or rehabilitated with funds under this section must be affordable to the local work 
50.20 	force.
50.21 	Projects shall be prioritized that provide affordable housing to households that have incomes 
50.22 	which do not exceed, for homeownership projects, 80 percent of the greater of state or area 
50.23 	median income as determined by the United States Department of Housing and Urban 
50.24 	Development, and for rental housing projects, 50 percent of the greater of state or area 
50.25 	median income as determined by the United States Department of Housing and Urban 
50.26 	Development. Priority may be given to projects that: reduce disparities in home ownership; 
50.27 	reduce housing cost burden, housing instability, or homelessness; improve the habitability 
50.28 	of homes; create accessible housing; or create more energy- or water-efficient homes.
50.29 	(b) Gap financing is either:
50.30 	(1) the difference between the costs of the property, including acquisition, demolition, 
50.31 	rehabilitation, and construction, and the market value of the property upon sale; or
50.32 	(2) the difference between the cost of the property and the amount the targeted household 
50.33 	can afford for housing, based on industry standards and practices.
51.1 	(c) If aid under this section is used for demolition or removal of existing structures, the 
51.2 	cleared land must be used for the construction of housing to be owned or rented by persons 
51.3 	who meet the income limits of paragraph (a).
51.4 	(d) If an aid recipient uses the aid on new construction or substantial rehabilitation of a 
51.5 	building containing more than four units, the loan recipient must construct, convert, or 
51.6 	otherwise adapt the building to include:
51.7 	(1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
51.8 	accessible units, as defined by section 1002 of the current State Building Code Accessibility 
51.9 	Provisions for Dwelling Units in Minnesota, and include at least one roll-in shower; and
51.10 	(2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
51.11 	sensory-accessible units that include:
51.12 	(A) soundproofing between shared walls for first and second floor units;
51.13 	(B) no florescent lighting in units and common areas;
51.14 	(C) low-fume paint;
51.15 	(D) low-chemical carpet; and
51.16 	(E) low-chemical carpet glue in units and common areas.
51.17 	Nothing in this paragraph relieves a project funded by this section from meeting other 
51.18 	applicable accessibility requirements.
51.19 		Subd. 5.Use of proceeds. (a) Any funds distributed under this section must be spent on 
51.20 	a qualifying project. Funds are considered spent on a qualifying project if:
51.21 	(1) a tier I city or county demonstrates to the Minnesota Housing Finance Agency that 
51.22 	the city or county cannot expend funds on a qualifying project by the deadline imposed by 
51.23 	paragraph (b) due to factors outside the control of the city or county; and
51.24 	(2) the funds are transferred to a local housing trust fund.
51.25 	Funds transferred to a local housing trust fund under this paragraph must be spent on a 
51.26 	project or household that meets the affordability requirements of subdivision 4, paragraph 
51.27 	(a).
51.28 	(b) Funds must be spent by December 31 in the third year following the year after the 
51.29 	aid was received.
51.30 		Subd. 6.Administration. (a) The commissioner of revenue must compute the amount 
51.31 	of aid payable to each tier I city and county under this section. By August 1 of each year, 
52.1 	the commissioner must certify the distribution factors of each tier I city and county to be 
52.2 	used in the following year. The commissioner must pay local affordable housing aid annually 
52.3 	at the times provided in section 477A.015, distributing the amounts available on the 
52.4 	immediately preceding June 1 under the accounts established in section 477A.37, subdivisions 
52.5 	2 and 3.
52.6 	(b) Beginning in 2025, tier I cities and counties shall submit a report annually, no later 
52.7 	than December 1 of each year, to the Minnesota Housing Finance Agency. The report must 
52.8 	include documentation of the location of any unspent funds distributed under this section 
52.9 	and of qualifying projects completed or planned with funds under this section. If a tier I 
52.10 	city or county fails to submit a report, if a tier I city or county fails to spend funds within 
52.11 	the timeline imposed under subdivision 5, paragraph (b), or if a tier I city or county uses 
52.12 	funds for a project that does not qualify under this section, the Minnesota Housing Finance 
52.13 	Agency shall notify the Department of Revenue and the cities and counties that must repay 
52.14 	funds under paragraph (c) by February 15 of the following year.
52.15 	(c) By May 15, after receiving notice from the Minnesota Housing Finance Agency, a 
52.16 	tier I city or county must pay to the Minnesota Housing Finance Agency funds the city or 
52.17 	county received under this section if the city or county:
52.18 	(1) fails to spend the funds within the time allowed under subdivision 5, paragraph (b);
52.19 	(2) spends the funds on anything other than a qualifying project; or
52.20 	(3) fails to submit a report documenting use of the funds.
52.21 	(d) The commissioner of revenue must stop distributing funds to a tier I city or county 
52.22 	that, in three consecutive years, the Minnesota Housing Finance Agency has reported, 
52.23 	pursuant to paragraph (b), to have failed to use funds, misused funds, or failed to report on 
52.24 	its use of funds.
52.25 	(e) The commissioner may resume distributing funds to a tier I city or county to which 
52.26 	the commissioner has stopped payments in the year following the August 1 after the 
52.27 	Minnesota Housing Finance Agency certifies that the city or county has submitted 
52.28 	documentation of plans for a qualifying project.
52.29 	(f) By June 1, any funds paid to the Minnesota Housing Finance Agency under paragraph 
52.30 	(c) must be deposited in the housing development fund. Funds deposited under this paragraph 
52.31 	are appropriated to the commissioner of the Minnesota Housing Finance Agency for use 
52.32 	on the family homeless prevention and assistance program under section 462A.204, the 
53.1 	economic development and housing challenge program under section 462A.33, and the 
53.2 	workforce and affordable homeownership development program under section 462A.38.
53.3 		Subd. 7.County consultation with local governments. A county that receives funding 
53.4 	under this section shall regularly consult with the local governments in the jurisdictions of 
53.5 	which its qualifying projects are planned or located.

53.6 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2024.

53.7 	Sec. 4. [477A.37] HOUSING ASSISTANCE FUND.
53.8 		Subdivision 1.Fund established. A housing assistance fund is established in the state 
53.9 	treasury. The fund consists of money as provided under section 297A.9925, and any other 
53.10 	money donated, allotted, transferred, or otherwise provided to the fund.
53.11 		Subd. 2.Metropolitan county aid account; appropriation. (a) A metropolitan county 
53.12 	aid account is established in the housing assistance fund. The account consists of money as 
53.13 	provided under section 297A.9925, and any other money donated, allotted, transferred, or 
53.14 	otherwise provided to the account.
53.15 	(b) Money in the metropolitan county aid account is annually appropriated to the 
53.16 	commissioner of revenue for payments to counties as provided under Minnesota Statutes, 
53.17 	section 477A.35.
53.18 		Subd. 3.Metropolitan city aid account; appropriation. (a) A metropolitan city aid 
53.19 	account is established in the housing assistance fund. The account consists of money as 
53.20 	provided under section 297A.9925, and any other money donated, allotted, transferred, or 
53.21 	otherwise provided to the account.
53.22 	(b) Money in the metropolitan city aid account is annually appropriated to the 
53.23 	commissioner of revenue for payments to cities as provided under Minnesota Statutes, 
53.24 	section 477A.35.

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

53.26 	ARTICLE 6
53.27 	MISCELLANEOUS

53.28 	Section 1. Minnesota Statutes 2022, section 82.75, subdivision 8, is amended to read:
53.29 		Subd. 8.Accrued interest. (a) Each broker shall maintain a pooled interest-bearing trust 
53.30 	account for deposit of client funds. The interest accruing on the trust account, less reasonable 
53.31 	transaction costs, must be paid to the commissioner of management and budget Minnesota 
54.1 	Housing Finance Agency for deposit in the housing trust fund account created under section 
54.2 	462A.201 unless otherwise specified pursuant to an expressed written agreement between 
54.3 	the parties to a transaction.
54.4 	(b) For an account created under paragraph (a), each broker shall direct the financial 
54.5 	institution to:
54.6 	(1) pay the interest, less reasonable transaction costs, computed in accordance with the 
54.7 	financial institution's standard accounting practice, at least quarterly, to the commissioner 
54.8 	of management and budget Minnesota Housing Finance Agency; and
54.9 	(2) send a statement to the commissioner of management and budget Minnesota Housing 
54.10 	Finance Agency showing the name of the broker for whom the payment is made, the rate 
54.11 	of interest applied, the amount of service charges deducted, and the account balance for the 
54.12 	period in which the report is made.
54.13 	The commissioner of management and budget Minnesota Housing Finance Agency shall 
54.14 	credit the amount collected under this subdivision to the housing trust fund account 
54.15 	established in section 462A.201.
54.16 	(c) The financial institution must promptly notify the commissioner agency if a draft 
54.17 	drawn on the account is dishonored. A draft is not dishonored if a stop payment order is 
54.18 	requested by an issuer who has a good faith defense to payment on the draft.
54.19 	(d) By January 15 of each year, the Minnesota Housing Finance Agency must report to 
54.20 	the chairs and ranking minority members of the legislative committees with jurisdiction 
54.21 	over housing finance and policy. The report must specify the amount of funds deposited 
54.22 	under this subdivision in the housing trust fund account established under section 462A.201 
54.23 	during the most recently concluded fiscal year. The report must also include a history of 
54.24 	deposits made under this section, in nominal dollar amounts and in the present value of 
54.25 	those amounts, calculated using the Consumer Price Index-All Items (United States city 
54.26 	average).

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

54.28 	Sec. 2. Minnesota Statutes 2022, section 327C.095, subdivision 12, is amended to read:
54.29 		Subd. 12.Payment to the Minnesota manufactured home relocation trust fund. (a) 
54.30 	If a manufactured home owner is required to move due to the conversion of all or a portion 
54.31 	of a manufactured home park to another use, the closure of a park, or cessation of use of 
54.32 	the land as a manufactured home park, the manufactured park owner shall, upon the change 
54.33 	in use, pay to the commissioner of management and budget Minnesota Housing Finance 
55.1 	Agency for deposit in the Minnesota manufactured home relocation trust fund under section 
55.2 	462A.35, the lesser amount of the actual costs of moving or purchasing the manufactured 
55.3 	home approved by the neutral third party and paid by the Minnesota Housing Finance 
55.4 	Agency under subdivision 13, paragraph (a) or (e), or $3,250 for each single section 
55.5 	manufactured home, and $6,000 for each multisection manufactured home, for which a 
55.6 	manufactured home owner has made application for payment of relocation costs under 
55.7 	subdivision 13, paragraph (c). The manufactured home park owner shall make payments 
55.8 	required under this section to the Minnesota manufactured home relocation trust fund within 
55.9 	60 days of receipt of invoice from the neutral third party.
55.10 	(b) A manufactured home park owner is not required to make the payment prescribed 
55.11 	under paragraph (a), nor is a manufactured home owner entitled to compensation under 
55.12 	subdivision 13, paragraph (a) or (e), if:
55.13 	(1) the manufactured home park owner relocates the manufactured home owner to 
55.14 	another space in the manufactured home park or to another manufactured home park at the 
55.15 	park owner's expense;
55.16 	(2) the manufactured home owner is vacating the premises and has informed the 
55.17 	manufactured home park owner or manager of this prior to the mailing date of the closure 
55.18 	statement under subdivision 1;
55.19 	(3) a manufactured home owner has abandoned the manufactured home, or the 
55.20 	manufactured home owner is not current on the monthly lot rental, personal property taxes;
55.21 	(4) the manufactured home owner has a pending eviction action for nonpayment of lot 
55.22 	rental amount under section 327C.09, which was filed against the manufactured home owner 
55.23 	prior to the mailing date of the closure statement under subdivision 1, and the writ of recovery 
55.24 	has been ordered by the district court;
55.25 	(5) the conversion of all or a portion of a manufactured home park to another use, the 
55.26 	closure of a park, or cessation of use of the land as a manufactured home park is the result 
55.27 	of a taking or exercise of the power of eminent domain by a governmental entity or public 
55.28 	utility; or
55.29 	(6) the owner of the manufactured home is not a resident of the manufactured home 
55.30 	park, as defined in section 327C.015, subdivision 14; the owner of the manufactured home 
55.31 	is a resident, but came to reside in the manufactured home park after the mailing date of 
55.32 	the closure statement under subdivision 1; or the owner of the manufactured home has not 
55.33 	paid the $15 assessment when due under paragraph (c).
56.1 	(c) If the unencumbered fund balance in the manufactured home relocation trust fund 
56.2 	is less than $2,000,000 as of June 30 of each year, the commissioner of management and 
56.3 	budget Minnesota Housing Finance Agency shall assess each manufactured home park 
56.4 	owner by mail the total amount of $15 for each licensed lot in their park, payable on or 
56.5 	before December 15 of that year. Failure to notify and timely assess the manufactured home 
56.6 	park owner by July 31 of any year shall waive the assessment and payment obligations of 
56.7 	the manufactured home park owner for that year. Together with said assessment notice, 
56.8 	each year the commissioner of management and budget Minnesota Housing Finance Agency
56.9 	shall prepare and distribute to park owners a letter explaining whether funds are being 
56.10 	collected for that year, information about the collection, an invoice for all licensed lots, a 
56.11 	notice for distribution to the residents, and a sample form for the park owners to collect 
56.12 	information on which park residents and lots have been accounted for. In a font no smaller 
56.13 	than 14-point, the notice provided by management and budget the Minnesota Housing 
56.14 	Finance Agency for distribution to residents by the park owner will include the payment 
56.15 	deadline of October 31 and the following language: "THIS IS NOT AN OPTIONAL FEE. 
56.16 	IF YOU OWN A MANUFACTURED HOME ON A LOT YOU RENT IN A 
56.17 	MANUFACTURED HOME PARK, AND YOU RESIDE IN THAT HOME, YOU MUST 
56.18 	PAY WHEN PROVIDED NOTICE." If assessed under this paragraph, the park owner may 
56.19 	recoup the cost of the $15 assessment as a lump sum or as a monthly fee of no more than 
56.20 	$1.25 collected from park residents together with monthly lot rent as provided in section 
56.21 	327C.03, subdivision 6. If, by September 15, a park owner provides the notice to residents 
56.22 	for the $15 lump sum, a park owner may adjust payment for lots in their park that are vacant 
56.23 	or otherwise not eligible for contribution to the trust fund under section 327C.095, subdivision 
56.24 	12, paragraph (b), and for park residents who have not paid the $15 assessment when due 
56.25 	to the park owner by October 31, and deduct from the assessment accordingly. The 
56.26 	commissioner of management and budget Minnesota Housing Finance Agency shall deposit 
56.27 	any payments in the Minnesota manufactured home relocation trust fund and provide to the 
56.28 	Minnesota Housing Finance Agency by December 31, a maintain an annual record for each 
56.29 	manufactured home park of the amount received for that park and the number of deductions 
56.30 	made for each of the following reasons: vacant lots, ineligible lots, and uncollected fees.
56.31 	(d) This subdivision and subdivision 13, paragraph (c), clause (5), are enforceable by 
56.32 	the neutral third party, on behalf of the Minnesota Housing Finance Agency, or by action 
56.33 	in a court of appropriate jurisdiction. The court may award a prevailing party reasonable 
56.34 	attorney fees, court costs, and disbursements.

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

57.1 	Sec. 3. Minnesota Statutes 2022, section 327C.095, subdivision 13, is amended to read:
57.2 		Subd. 13.Change in use, relocation expenses; payments by park owner. (a) If a 
57.3 	manufactured home owner is required to relocate due to the conversion of all or a portion 
57.4 	of a manufactured home park to another use, the closure of a manufactured home park, or 
57.5 	cessation of use of the land as a manufactured home park under subdivision 1, and the 
57.6 	manufactured home owner complies with the requirements of this section, the manufactured 
57.7 	home owner is entitled to payment from the Minnesota manufactured home relocation trust 
57.8 	fund equal to the manufactured home owner's actual relocation costs for relocating the 
57.9 	manufactured home to a new location within a 50-mile radius of the park that is being closed, 
57.10 	up to a maximum of $7,000 for a single-section and $12,500 for a multisection manufactured 
57.11 	home. The actual relocation costs must include the reasonable cost of taking down, moving, 
57.12 	and setting up the manufactured home, including equipment rental, utility connection and 
57.13 	disconnection charges, minor repairs, modifications necessary for transportation of the 
57.14 	home, necessary moving permits and insurance, moving costs for any appurtenances, which 
57.15 	meet applicable local, state, and federal building and construction codes.
57.16 	(b) A manufactured home owner is not entitled to compensation under paragraph (a) if 
57.17 	the manufactured home park owner is not required to make a payment to the Minnesota 
57.18 	manufactured home relocation trust fund under subdivision 12, paragraph (b).
57.19 	(c) Except as provided in paragraph (e), in order to obtain payment from the Minnesota 
57.20 	manufactured home relocation trust fund, the manufactured home owner shall submit to the 
57.21 	neutral third party and the Minnesota Housing Finance Agency, with a copy to the park 
57.22 	owner, an application for payment, which includes:
57.23 	(1) a copy of the closure statement under subdivision 1;
57.24 	(2) a copy of the contract with a moving or towing contractor, which includes the 
57.25 	relocation costs for relocating the manufactured home;
57.26 	(3) a statement with supporting materials of any additional relocation costs as outlined 
57.27 	in subdivision 1;
57.28 	(4) a statement certifying that none of the exceptions to receipt of compensation under 
57.29 	subdivision 12, paragraph (b), apply to the manufactured home owner;
57.30 	(5) a statement from the manufactured park owner that the lot rental is current and that 
57.31 	the annual $15 payment to the Minnesota manufactured home relocation trust fund has been 
57.32 	paid when due; and
58.1 	(6) a statement from the county where the manufactured home is located certifying that 
58.2 	personal property taxes for the manufactured home are paid through the end of that year.
58.3 	(d) The neutral third party shall promptly process all payments for completed applications 
58.4 	within 14 days. If the neutral third party has acted reasonably and does not approve or deny 
58.5 	payment within 45 days after receipt of the information set forth in paragraph (c), the 
58.6 	payment is deemed approved. Upon approval and request by the neutral third party, the 
58.7 	Minnesota Housing Finance Agency shall issue two checks in equal amount for 50 percent 
58.8 	of the contract price payable to the mover and towing contractor for relocating the 
58.9 	manufactured home in the amount of the actual relocation cost, plus a check to the home 
58.10 	owner for additional certified costs associated with third-party vendors, that were necessary 
58.11 	in relocating the manufactured home. The moving or towing contractor shall receive 50 
58.12 	percent upon execution of the contract and 50 percent upon completion of the relocation 
58.13 	and approval by the manufactured home owner. The moving or towing contractor may not 
58.14 	apply the funds to any other purpose other than relocation of the manufactured home as 
58.15 	provided in the contract. A copy of the approval must be forwarded by the neutral third 
58.16 	party to the park owner with an invoice for payment of the amount specified in subdivision 
58.17 	12, paragraph (a).
58.18 	(e) In lieu of collecting a relocation payment from the Minnesota manufactured home 
58.19 	relocation trust fund under paragraph (a), the manufactured home owner may collect an 
58.20 	amount from the fund after reasonable efforts to relocate the manufactured home have failed 
58.21 	due to the age or condition of the manufactured home, or because there are no manufactured 
58.22 	home parks willing or able to accept the manufactured home within a 25-mile radius. A 
58.23 	manufactured home owner may tender title of the manufactured home in the manufactured 
58.24 	home park to the manufactured home park owner, and collect an amount to be determined 
58.25 	by an independent appraisal. The appraiser must be agreed to by both the manufactured 
58.26 	home park owner and the manufactured home owner. If the appraised market value cannot 
58.27 	be determined, the tax market value, averaged over a period of five years, can be used as a 
58.28 	substitute. The maximum amount that may be reimbursed under the fund is $8,000 for a 
58.29 	single-section and $14,500 for a multisection manufactured home. The minimum amount 
58.30 	that may be reimbursed under the fund is $2,000 for a single section and $4,000 for a 
58.31 	multisection manufactured home. The manufactured home owner shall deliver to the 
58.32 	manufactured home park owner the current certificate of title to the manufactured home 
58.33 	duly endorsed by the owner of record, and valid releases of all liens shown on the certificate 
58.34 	of title, and a statement from the county where the manufactured home is located evidencing 
58.35 	that the personal property taxes have been paid. The manufactured home owner's application 
59.1 	for funds under this paragraph must include a document certifying that the manufactured 
59.2 	home cannot be relocated, that the lot rental is current, that the annual $15 payments to the 
59.3 	Minnesota manufactured home relocation trust fund have been paid when due, that the 
59.4 	manufactured home owner has chosen to tender title under this section, and that the park 
59.5 	owner agrees to make a payment to the commissioner of management and budget Minnesota 
59.6 	Housing Finance Agency in the amount established in subdivision 12, paragraph (a), less 
59.7 	any documented costs submitted to the neutral third party, required for demolition and 
59.8 	removal of the home, and any debris or refuse left on the lot, not to exceed $1,500. The 
59.9 	manufactured home owner must also provide a copy of the certificate of title endorsed by 
59.10 	the owner of record, and certify to the neutral third party, with a copy to the park owner, 
59.11 	that none of the exceptions to receipt of compensation under subdivision 12, paragraph (b), 
59.12 	clauses (1) to (6), apply to the manufactured home owner, and that the home owner will 
59.13 	vacate the home within 60 days after receipt of payment or the date of park closure, 
59.14 	whichever is earlier, provided that the monthly lot rent is kept current.
59.15 	(f) Notwithstanding paragraph (a), the manufactured home owner's compensation for 
59.16 	relocation costs from the fund under section 462A.35, is the greater of the amount provided 
59.17 	under this subdivision, or the amount under the local ordinance in effect on May 26, 2007, 
59.18 	that is applicable to the manufactured home owner. Nothing in this paragraph is intended 
59.19 	to increase the liability of the park owner.
59.20 	(g) Neither the neutral third party nor the Minnesota Housing Finance Agency shall be 
59.21 	liable to any person for recovery if the funds in the Minnesota manufactured home relocation 
59.22 	trust fund are insufficient to pay the amounts claimed. The Minnesota Housing Finance 
59.23 	Agency shall keep a record of the time and date of its approval of payment to a claimant.
59.24 	(h)(1) By October 15, 2019, the Minnesota Housing Finance Agency shall post on its 
59.25 	website and report to the chairs of the senate Finance Committee and house of representatives 
59.26 	Ways and Means Committee on the Minnesota manufactured home relocation trust fund, 
59.27 	including the account balance, payments to claimants, the amount of any advances to the 
59.28 	fund, the amount of any insufficiencies encountered during the previous calendar year, and 
59.29 	any itemized administrative charges or expenses deducted from the trust fund balance. If 
59.30 	sufficient funds become available, the Minnesota Housing Finance Agency shall pay the 
59.31 	manufactured home owner whose unpaid claim is the earliest by time and date of approval.
59.32 	(2) Beginning in 2019, the Minnesota Housing Finance Agency shall post on its website 
59.33 	and report to the chairs of the senate Finance Committee and house of representatives Ways 
59.34 	and Means Committee by October 15 of each year on the Minnesota manufactured home 
59.35 	relocation trust fund, including the aggregate account balance, the aggregate assessment 
60.1 	payments received, summary information regarding each closed park including the total 
60.2 	payments to claimants and payments received from each closed park, the amount of any 
60.3 	advances to the fund, the amount of any insufficiencies encountered during the previous 
60.4 	fiscal year, reports of neutral third parties provided pursuant to subdivision 4, and any 
60.5 	itemized administrative charges or expenses deducted from the trust fund balance, all of 
60.6 	which should be reconciled to the previous year's trust fund balance. If sufficient funds 
60.7 	become available, the Minnesota Housing Finance Agency shall pay the manufactured home 
60.8 	owner whose unpaid claim is the earliest by time and date of approval.

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

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

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

60.20 	Sec. 5. Minnesota Statutes 2022, section 327C.096, is amended to read:
60.21 	327C.096 NOTICE OF SALE.
60.22 	When a park owner offers to sell a manufactured home park to the public through 
60.23 	advertising in a newspaper or by listing the park with a real estate broker licensed by the 
60.24 	Department of Commerce, the owner must provide concurrent written notice to a resident
60.25 	of each manufactured homeeach resident household in the park that the park is being offered 
60.26 	for sale. Written notice provided once within a one-year period satisfies the requirement 
60.27 	under this section. The notice provided by the park owner to a resident of each manufactured 
60.28 	homeeach resident household does not grant any property rights in the park and is for 
60.29 	informational purposes only. This section does not apply in the case of a taking by eminent 
60.30 	domain, a transfer by a corporation to an affiliate, a transfer by a partnership to one or more 
60.31 	of its partners, or a sale or transfer to a person who would be an heir of the owner if the 
60.32 	owner were to die intestate. If at any time a manufactured home park owner receives an 
60.33 	unsolicited bona fide offer to purchase the park that the owner intends to consider or make 
61.1 	a counter offer to, the owner is under no obligation to notify the residents as required under 
61.2 	this section.

61.3 	Sec. 6. [327C.097] NOTICE OF UNSOLICITED SALE.
61.4 		Subdivision 1.Definitions. For the purposes of this section, "nonprofit" means a nonprofit 
61.5 	organization under chapter 317A.
61.6 		Subd. 2.Scope. This section does not apply to:
61.7 	(1) a purchase of a manufactured home park by a nonprofit or a representative acting 
61.8 	on behalf of residents pursuant to a bona fide offer to purchase the park pursuant to 
61.9 	subdivision 5;
61.10 	(2) a purchase of a manufactured home park by a governmental entity under its powers 
61.11 	or threat of eminent domain;
61.12 	(3) a transfer by a corporation or limited liability company to an affiliate, including any 
61.13 	shareholder or member of the transferring corporation; any corporation or entity owned or 
61.14 	controlled, directly or indirectly, by the transferring corporation; or any other corporation 
61.15 	or entity owned or controlled, directly or indirectly, by any shareholder or member of the 
61.16 	transferring corporation;
61.17 	(4) a transfer by a partnership to any of its partners;
61.18 	(5) a sale or transfer between or among joint tenants or tenants in common owning a 
61.19 	manufactured home park;
61.20 	(6) an exchange of a manufactured home park for other real property, whether or not 
61.21 	such exchange also invoices the payment of cash or boot;
61.22 	(7) a conveyance of an interest in a manufactured home park incidental to the financing 
61.23 	of the manufactured home park;
61.24 	(8) a conveyance resulting from the foreclosure of a mortgage, cancellation of a contract 
61.25 	for deed, or other instrument encumbering a manufactured home park or any deed given in 
61.26 	lieu of such foreclosure or cancellation;
61.27 	(9) a sale or transfer to a person who would be included within the intestate table of 
61.28 	descent and distribution of the park owner; or
61.29 	(10) a park owner who, within the past year, has provided written notice pursuant to 
61.30 	section 327C.096.
62.1 		Subd. 3.Notice of offer. (a) If a park owner receives an unsolicited bona fide offer to 
62.2 	purchase the park that the park owner intends to consider or make a counteroffer to, the 
62.3 	park owner's only obligation shall be to mail a notice to the Minnesota Housing Finance 
62.4 	Agency, by certified mail, and to each park resident household, by regular mail. The notice 
62.5 	must indicate that the park owner has received an offer that it is considering, and it must 
62.6 	disclose the price range and material terms and conditions upon which the park owner would 
62.7 	consider selling the park and consider any offer made by a representative acting on behalf 
62.8 	of residents or a nonprofit that will become a representative acting on behalf of residents, 
62.9 	as provided below. The park owner shall be under no obligation either to sell to the nonprofit 
62.10 	or representative acting on behalf of residents or to interrupt or delay other negotiations and 
62.11 	shall be free to execute a purchase agreement or contract for the sale of the park to a party 
62.12 	or parties other than the representative acting on behalf of residents. Substantial compliance 
62.13 	with the notice requirement in this paragraph shall be deemed sufficient.
62.14 	(b) The Minnesota Housing Finance Agency must, within five days of receipt of the 
62.15 	notice required under paragraph (a), distribute a copy of the notice to any representative 
62.16 	acting on behalf of residents and to any nonprofits that register with the agency to receive 
62.17 	such notices. The agency shall make a list of any representatives acting on behalf of residents 
62.18 	and any registered nonprofits publicly available on its website.
62.19 		Subd. 4.Unsolicited offer. Nothing contained in this section or section 327C.096 shall 
62.20 	prevent a representative acting on behalf of residents or a nonprofit from making an 
62.21 	unsolicited bona fide offer to purchase the manufactured home park to the park owner at 
62.22 	any time.

62.23 	Sec. 7. Minnesota Statutes 2022, section 462.357, subdivision 1, is amended to read:
62.24 		Subdivision 1.Authority for zoning. For the purpose of promoting the public health, 
62.25 	safety, morals, and general welfare, a municipality may by ordinance regulate on the earth's 
62.26 	surface, in the air space above the surface, and in subsurface areas, the location, height, 
62.27 	width, bulk, type of foundation, number of stories, size of buildings and other structures, 
62.28 	the percentage of lot which may be occupied, the size of yards and other open spaces, the 
62.29 	density and distribution of population, the uses of buildings and structures for trade, industry, 
62.30 	residence, recreation, public activities, or other purposes, and the uses of land for trade, 
62.31 	industry, residence, recreation, agriculture, forestry, soil conservation, water supply 
62.32 	conservation, conservation of shorelands, as defined in sections 103F.201 to 103F.221, 
62.33 	access to direct sunlight for solar energy systems as defined in section 216C.06, flood control 
62.34 	or other purposes, and may establish standards and procedures regulating such uses. To 
63.1 	accomplish these purposes, official controls may include provision for purchase of 
63.2 	development rights by the governing body in the form of conservation easements under 
63.3 	chapter 84C in areas where the governing body considers preservation desirable and the 
63.4 	transfer of development rights from those areas to areas the governing body considers more 
63.5 	appropriate for development. No regulation may prohibit earth sheltered construction as 
63.6 	defined in section 216C.06, subdivision 14, relocated residential buildings, or manufactured 
63.7 	homes built in conformance with sections 327.31 to 327.35, or industrialized or modular 
63.8 	buildings for residential use built in conformance with Minnesota Rules, chapter 1361, that 
63.9 	comply with all other zoning ordinances promulgated pursuant to this section. The regulations 
63.10 	may divide the surface, above surface, and subsurface areas of the municipality into districts 
63.11 	or zones of suitable numbers, shape, and area. The regulations shall be uniform for each 
63.12 	class or kind of buildings, structures, or land and for each class or kind of use throughout 
63.13 	such district, but the regulations in one district may differ from those in other districts. The 
63.14 	ordinance embodying these regulations shall be known as the zoning ordinance and shall 
63.15 	consist of text and maps. A city may by ordinance extend the application of its zoning 
63.16 	regulations to unincorporated territory located within two miles of its limits in any direction, 
63.17 	but not in a county or town which has adopted zoning regulations; provided that where two 
63.18 	or more noncontiguous municipalities have boundaries less than four miles apart, each is 
63.19 	authorized to control the zoning of land on its side of a line equidistant between the two 
63.20 	noncontiguous municipalities unless a town or county in the affected area has adopted 
63.21 	zoning regulations. Any city may thereafter enforce such regulations in the area to the same 
63.22 	extent as if such property were situated within its corporate limits, until the county or town 
63.23 	board adopts a comprehensive zoning regulation which includes the area.

63.24 	Sec. 8. Minnesota Statutes 2022, section 469.002, subdivision 12, is amended to read:
63.25 		Subd. 12.Project. "Project" means a housing project, a housing development project, 
63.26 	a workforce housing project, or a redevelopment project, or any combination of those 
63.27 	projects. The term "project" also may be applied to all real and personal property, assets, 
63.28 	cash, or other funds, held or used in connection with the development or operation of the 
63.29 	project. The term "project" also includes an interest reduction program authorized by section 
63.30 	469.012, subdivision 7.

63.31 	Sec. 9. Minnesota Statutes 2022, section 469.002, is amended by adding a subdivision to 
63.32 	read:
63.33 		Subd. 25.Workforce housing project. (a) "Workforce housing project" means any 
63.34 	work or undertaking by an authority located in an eligible project area to develop market 
64.1 	rate residential rental properties, as defined in section 462A.39, subdivision 2, paragraph 
64.2 	(d), or single-family housing, as defined under section 462C.02, subdivision 4.
64.3 	(b) For the purposes of this paragraph, "eligible project area" means an area that meets 
64.4 	the criteria under section 462A.39, subdivisions 2, paragraph (b), and 4, paragraph (a).

64.5 	Sec. 10. Minnesota Statutes 2022, section 500.20, subdivision 2a, is amended to read:
64.6 		Subd. 2a.Restriction of duration of condition. Except for any right to reenter or to 
64.7 	repossess as provided in subdivision 3, all private covenants, conditions, or restrictions 
64.8 	created by which the title or use of real property is affected, cease to be valid and operative 
64.9 	30 years after the date of the deed, or other instrument, or the date of the probate of the will, 
64.10 	creating them, and may be disregarded.
64.11 	This subdivision does not apply to covenants, conditions, or restrictions:
64.12 	(1) that were created before August 1, 1959, under which a person who owns or has an 
64.13 	interest in real property against which the covenants, conditions, or restrictions have been 
64.14 	filed claims a benefit of the covenant, condition, or restriction if the person records in the 
64.15 	office of the county recorder or files in the office of the registrar of titles in the county in 
64.16 	which the real estate affected is located, on or before March 30, 1989, a notice sworn to by 
64.17 	the claimant or the claimant's agent or attorney: setting forth the name of the claimant; 
64.18 	describing the real estate affected; describing the deed, instrument, or will creating the 
64.19 	covenant, condition, or restriction; and stating that the covenant, condition, or restriction is 
64.20 	not nominal and may not be disregarded under subdivision 1;
64.21 	(2) that are created by the declaration, bylaws, floor plans, or condominium plat of a 
64.22 	condominium created before August 1, 1980, under chapter 515, or created on or after 
64.23 	August 1, 1980, under chapter 515A or 515B, or by any amendments of the declaration, 
64.24 	bylaws, floor plans, or condominium plat;
64.25 	(3) that are created by the articles of incorporation, bylaws, or proprietary leases of a 
64.26 	cooperative association formed under chapter 308A;
64.27 	(4) that are created by a declaration or other instrument that authorizes and empowers 
64.28 	a corporation of which the qualification for being a stockholder or member is ownership of 
64.29 	certain parcels of real estate, to hold title to common real estate for the benefit of the parcels;
64.30 	(5) that are created by a deed, declaration, reservation, or other instrument by which one 
64.31 	or more portions of a building, set of connecting or adjacent buildings, or complex or project 
64.32 	of related buildings and structures share support, structural components, ingress and egress, 
64.33 	or utility access with another portion or portions;
65.1 	(6) that were created after July 31, 1959, under which a person who owns or has an 
65.2 	interest in real estate against which covenants, conditions, or restrictions have been filed 
65.3 	claims a benefit of the covenants, conditions, or restrictions if the person records in the 
65.4 	office of the county recorder or files in the office of the registrar of titles in the county in 
65.5 	which the real estate affected is located during the period commencing on the 28th 
65.6 	anniversary of the date of the deed or instrument, or the date of the probate of the will, 
65.7 	creating them and ending on the 30th anniversary, a notice as described in clause (1); or
65.8 	(7) that are created by a declaration or bylaws of a common interest community created 
65.9 	under or governed by chapter 515B, or by any amendments thereto.; or
65.10 	(8) that are created by a declaration or other instrument required by a government entity 
65.11 	related to affordable housing.
65.12 	A notice filed in accordance with clause (1) or (6) delays application of this subdivision 
65.13 	to the covenants, conditions, or restrictions for a period ending on the later of seven years 
65.14 	after the date of filing of the notice, or until final judgment is entered in an action to determine 
65.15 	the validity of the covenants, conditions, or restrictions, provided in the case of an action 
65.16 	the summons and complaint must be served and a notice of lis pendens must be recorded 
65.17 	in the office of the county recorder or filed in the office of the registrar of titles in each 
65.18 	county in which the real estate affected is located within seven years after the date of 
65.19 	recording or filing of the notice under clause (1) or (6).
65.20 	County recorders and registrars of titles shall accept for recording or filing a notice 
65.21 	conforming with this subdivision and charge a fee corresponding with the fee charged for 
65.22 	filing a notice of lis pendens of similar length. The notice may be discharged in the same 
65.23 	manner as a notice of lis pendens and when discharged, together with the information 
65.24 	included with it, ceases to constitute either actual or constructive notice.

65.25 	Sec. 11. Laws 2023, chapter 20, section 1, is amended to read:
65.26 	Section 1. APPROPRIATION.
 65.27 	(a) $50,000,000 in fiscal year 2023 is appropriated from the general fund to the Housing 
65.28 	Finance Agency for transfer to the housing development fund for the family homeless 
65.29 	prevention and assistance program under Minnesota Statutes, section 462A.204. This 
65.30 	appropriation is onetime. Notwithstanding procurement provisions outlined in Minnesota 
65.31 	Statutes, section 16C.06, subdivisions 1, 2, and 6, the agency may award grants to existing 
65.32 	program grantees. The agency shall make best efforts to spend the appropriation by June 
65.33 	30, 2024.
66.1 	(b) Notwithstanding Minnesota Statutes, section 462A.204, subdivision 5, qualified 
66.2 	families may receive more than 24 months of rental assistance.
66.3 	(c) By January 15, 2024, and 60 days after the appropriation in paragraph (a) has been 
66.4 	expended, the commissioner shall report to the chairs and ranking minority members of the 
66.5 	legislative committees of housing finance the following:
66.6 	(1) the number of applicants and the total amount receiving rental assistance under this 
66.7 	section;
66.8 	(2) the geographic distribution of the rental assistance; and
66.9 	(3) for the January 15, 2024, report, the remaining balance of the appropriation in this 
66.10 	section.
66.11 	(d) If the agency determines that the metropolitan area is in need of additional support 
66.12 	to serve households that are homeless or at risk of homelessness, the agency may grant 
66.13 	funds to entities other than counties in the metropolitan area, including but not limited to 
66.14 	nonprofit organizations.
66.15 	(e) In circumstances where more than one grantee operates in a given geographic area, 
66.16 	grantees may work with either an advisory committee as required under Minnesota Statutes, 
66.17 	section 462A.204, subdivision 6, or the local Continuum of Care and are not required to 
66.18 	meet the requirements of Minnesota Statutes, section 462A.204, subdivision 4.

66.19 	Sec. 12. TRANSITION OF RESPONSIBILITIES TO THE MINNESOTA HOUSING 
66.20 	FINANCE AGENCY.
66.21 	A payment submitted to the commissioner of management and budget on or before July 
66.22 	1, 2025, for deposit into the housing trust fund account created under Minnesota Statutes, 
66.23 	section 462A.201, or into the Minnesota manufactured home relocation trust fund established 
66.24 	under Minnesota Statutes, section 462A.35, must be deposited by the commissioner of 
66.25 	management and budget in the housing trust fund account created under Minnesota Statutes, 
66.26 	section 462A.201, or in the Minnesota manufactured home relocation trust fund. The 
66.27 	commissioner of management and budget must notify the person who submitted the payment 
66.28 	to the commissioner of management and budget that the payment was received, documented, 
66.29 	and has been or will be deposited into the trust fund; that future payments must be submitted 
66.30 	to the Minnesota Housing Finance Agency rather than the commissioner of management 
66.31 	and budget; and that payments submitted to the commissioner of management and budget 
66.32 	after July 1, 2025, will not be accepted.

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

67.1 	Sec. 13. REQUIRING CITIES TO REPORT BUILDINGS THAT DO NOT HAVE 
67.2 	SPRINKLER SYSTEMS.
 67.3 	(a) A city of the first or second class shall provide to the state fire marshal a list by June 
67.4 	20, 2024, and an updated list by June 30, 2027, and June 30, 2032, of each residential 
67.5 	building in the city that:
67.6 	(1) has at least one story used for human occupancy that is 75 feet or more above the 
67.7 	lowest level of fire department vehicle access;
67.8 	(2) was not subject to a requirement to include a sprinkler system at the time the building 
67.9 	was constructed; and
67.10 	(3) has not been retrofitted with a sprinkler system.
67.11 	(b) The state fire marshal shall submit the lists within 60 days of the due dates under 
67.12 	paragraph (a) to the chairs and ranking minority members of the legislative committees with 
67.13 	jurisdiction over the State Building Code, State Fire Code, and Minnesota Housing Finance 
67.14 	Agency.

67.15 	Sec. 14. WORKGROUP ON EXPEDITING RENTAL ASSISTANCE.
 67.16 		Subdivision 1.Creation; duties. A workgroup is created to study how to expedite both 
67.17 	the processing of applications for rental assistance and for emergency rental assistance and 
67.18 	the distribution of rental assistance funds to landlords, in order to identify what processes, 
67.19 	procedures, and technological or personnel resources would be necessary to enable the state 
67.20 	or county agencies responsible for administering government rental assistance funds, 
67.21 	including the family homelessness prevention and assistance program, the emergency 
67.22 	assistance program, and emergency general assistance, to meet the following goals:
67.23 	(1) within two weeks of receiving a completed application for rental assistance, make 
67.24 	and issue a determination on the application; and
67.25 	(2) within 30 days of receiving a completed application for rental assistance, issue 
67.26 	payment on an approved rental application to the landlord.
67.27 		Subd. 2.Membership. The workgroup shall consist of the following:
67.28 	(1) the commissioner of the Minnesota Housing Finance Agency or a designee;
67.29 	(2) the commissioner of the Department of Human Services or designee;
67.30 	(3) a representative from the Minnesota Multi Housing Association;
67.31 	(4) a representative from Mid-Minnesota Legal Aid;
68.1 	(5) a representative from HOME Line;
68.2 	(6) a representative from the United Way;
68.3 	(7) a representative from the Salvation Army;
68.4 	(8) a representative from the Community Action Partnership;
68.5 	(9) a representative from Community Mediation Minnesota;
68.6 	(10) a representative from the Family Housing Fund;
68.7 	(11) four county administrators of emergency rental assistance, including two county 
68.8 	administrators who work for metropolitan counties, as defined by Minnesota Statutes, section 
68.9 	473.121, subdivision 4, and two county administrators who work for nonmetropolitan 
68.10 	counties, with one member from each category appointed by the speaker of the house of 
68.11 	representatives and one from each category appointed by the senate majority leader;
68.12 	(12) one member from the house of representatives appointed by the speaker of the 
68.13 	house; and
68.14 	(13) one member from the senate appointed by the senate majority leader.
68.15 		Subd. 3.Facilitation; organization; meetings. (a) The Management Analysis Division 
68.16 	of Minnesota Management and Budget shall facilitate the workgroup and convene the first 
68.17 	meeting by July 15, 2023.
68.18 	(b) The workgroup must meet at regular intervals as often as necessary to accomplish 
68.19 	the goals enumerated under subdivision 1.
68.20 	(c) Meetings of the workgroup are subject to the Minnesota Open Meeting Law under 
68.21 	Minnesota Statutes, chapter 13D.
68.22 		Subd. 4.External consultation. The workgroup shall consult with other individuals 
68.23 	and organizations that have expertise and experience that may assist the workgroup in 
68.24 	fulfilling its responsibilities, including entities engaging in additional external stakeholder 
68.25 	input from those with lived experience and administrators of emergency assistance not 
68.26 	named to the workgroup, including Minnesota's Tribal nations.
68.27 		Subd. 5.Report required. The workgroup shall submit a final report by February 1, 
68.28 	2024, to the chairs and ranking minority members of the legislative committees with 
68.29 	jurisdiction over housing finance and policy. The report shall include draft legislation 
68.30 	required to implement the proposed legislation.
69.1 		Subd. 6.Expiration. The workgroup expires upon submission of the final report in 
69.2 	subdivision 5, or February 28, 2024, whichever is later.

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