1.1 	A bill for an act
1.2 	relating to housing; modifying prior appropriations; establishing new programs 
1.3 	and modifying existing programs; expanding eligible uses of housing infrastructure 
1.4 	bonds; authorizing the issuance of housing infrastructure bonds; establishing a 
1.5 	working group and a task force; requiring reports; appropriating money;amending 
1.6 	Minnesota Statutes 2022, sections 15.082; 462A.02, subdivision 10; 462A.03, by 
1.7 	adding subdivisions; 462A.05, subdivisions 3b, 14a, 14b, 15, 15b, 21, 23; 462A.07, 
1.8 	by adding subdivisions; 462A.202, subdivision 3a; 462A.21, subdivisions 7, 8b; 
1.9 	462A.222, by adding a subdivision; 462A.35, subdivision 2; 462A.37, by adding 
1.10 	a subdivision; 462A.40, subdivisions 2, 3; 462C.02, subdivision 6; 469.012, 
1.11 	subdivision 2j; Minnesota Statutes 2023 Supplement, sections 462A.05, 
1.12 	subdivisions 14, 45; 462A.22, subdivision 1; 462A.37, subdivisions 2, 5; 462A.39, 
1.13 	subdivision 2; 477A.35, subdivisions 1, 2, 4, 5, 6, by adding a subdivision; Laws 
1.14 	2023, chapter 37, article 1, section 2, subdivisions 1, 2, 17, 29, 32; article 2, section 
1.15 	12, subdivision 2; Laws 2023, chapter 52, article 19, section 120; proposing coding 
1.16 	for new law in Minnesota Statutes, chapters 462A; 469; 504B.
1.17 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.18 	ARTICLE 1
1.19 	APPROPRIATIONS

1.20 	Section 1. Laws 2023, chapter 37, article 1, section 2, subdivision 1, is amended to read:

1.221.21
	Subdivision 1.Total Appropriation
 	$
	792,098,000
	$
	273,298,000
223,298,000
	
1.23 	(a) The amounts that may be spent for each 
1.24 	purpose are specified in the following 
1.25 	subdivisions.
1.26 	(b) Unless otherwise specified, this 
1.27 	appropriation is for transfer to the housing 
1.28 	development fund for the programs specified 
2.1 	in this section. Except as otherwise indicated, 
2.2 	this transfer is part of the agency's permanent 
2.3 	budget base.

2.4 	Sec. 2. Laws 2023, chapter 37, article 1, section 2, subdivision 17, is amended to read:

2.62.5
	Subd. 17.Housing Infrastructure
 		100,000,000
		100,000,000
60,000,000
	
2.7 	This appropriation is for the housing 
2.8 	infrastructure program for the eligible 
2.9 	purposes under Minnesota Statutes, section 
2.10 	462A.37, subdivision 2. This is a onetime 
2.11 	appropriation.

2.12 	Sec. 3. Laws 2023, chapter 37, article 1, section 2, subdivision 29, is amended to read:

2.142.13
	Subd. 29.Community Stabilization
 		45,000,000
		45,000,000
35,000,000
	
2.15 	This appropriation is for the community 
2.16 	stabilization program. This a onetime 
2.17 	appropriation. Of this amount, $10,000,000 is 
2.18 	for a grant to AEON for Huntington Place.

2.19 	Sec. 4. APPROPRIATION; MINNESOTA HOUSING FINANCE AGENCY.
 2.20 	$59,255,000 in fiscal year 2025 is appropriated from the general fund to the commissioner 
2.21 	of the Minnesota Housing Finance Agency. This appropriation is onetime and in addition 
2.22 	to amounts appropriated in 2023. This appropriation is for transfer to the housing 
2.23 	development fund. Of this amount:
2.24 	(1) $50,000,000 is for the housing affordability preservation investment program;
2.25 	(2) $8,885,000 is for the family homelessness prevention and assistance program under 
2.26 	Minnesota Statutes, section 462A.204. Notwithstanding Minnesota Statutes, section 16C.06, 
2.27 	$943,000 of this appropriation is allocated to federally recognized American Indian Tribes 
2.28 	located in Minnesota. Notwithstanding procurement provisions outlined in Minnesota 
2.29 	Statutes, section 16C.06, subdivisions 1, 2, and 6, the agency may award grants to existing 
2.30 	program grantees;
2.31 	(3) $270,000 is for administering the requirements of article 2, sections 18 and 43 to 46; 
2.32 	and
3.1 	(4) $100,000 is for a grant to the Amherst H. Wilder Foundation for the Minnesota 
3.2 	homeless study.

3.3 	Sec. 5. APPROPRIATION; MINNESOTA MANAGEMENT AND BUDGET.
 3.4 	$200,000 in fiscal year 2025 is appropriated from the general fund to the commissioner 
3.5 	of Minnesota Management and Budget for management analysis and development to facilitate 
3.6 	the working group on common interest communities and homeowners associations established 
3.7 	in article 3. This is a onetime appropriation.

3.8 	Sec. 6. APPROPRIATION; SUPREME COURT.
 3.9 	$545,000 in fiscal year 2025 is appropriated from the general fund to the supreme court 
3.10 	for the implementation of Laws 2023, chapter 52, article 19, section 120, as amended in 
3.11 	article 3, section 3. This is a onetime appropriation and is available until June 30, 2026.

3.12 	ARTICLE 2
3.13 	HOUSING POLICY

3.14 	Section 1. Minnesota Statutes 2022, section 15.082, is amended to read:
3.15 	15.082 OBLIGATIONS OF PUBLIC CORPORATIONS.
3.16 	Notwithstanding any other law, the state is not liable for obligations of a public 
3.17 	corporation created by statute. Upon dissolution of the public corporation, its wholly owned 
3.18 	assets become state property. Partially owned assets become state property to the extent 
3.19 	that state money was used to acquire them.
3.20 	This section does not apply to a public corporation governed by chapter 119 or section 
3.21 	469.0121.

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

3.23 	Sec. 2. Minnesota Statutes 2022, section 462A.02, subdivision 10, is amended to read:
3.24 		Subd. 10.Energy conservation decarbonization and climate resilience. It is further 
3.25 	declared that supplies of conventional energy resources are rapidly depleting in quantity 
3.26 	and rising in price and that the burden of these occurrences falls heavily upon the citizens 
3.27 	of Minnesota generally and persons of low and moderate income in particular. These 
3.28 	conditions are adverse to the health, welfare, and safety of all of the citizens of this state. 
3.29 	It is further declared that it is a public purpose to ensure the availability of financing to be 
3.30 	used by all citizens of the state, while giving preference to low and moderate income people, 
4.1 	to assist in the installation in their dwellings of reasonably priced energy conserving systems 
4.2 	including the use of alternative energy resources and equipment so that by the improvement 
4.3 	of the energy efficiency of, clean energy, greenhouse gas emissions reduction, climate 
4.4 	resiliency, and other qualified projects for all housing, the adequacy of the total energy 
4.5 	supply may be preserved for the benefit of all citizens.

4.6 	Sec. 3. Minnesota Statutes 2022, section 462A.03, is amended by adding a subdivision to 
4.7 	read:
4.8 		Subd. 2a.Distressed building. "Distressed building" means an existing rental housing 
4.9 	building:
4.10 	(1) in which the units are restricted to households at or below 60 percent of the area 
4.11 	median income; and
4.12 	(2) that:
4.13 	(i) is in foreclosure proceedings;
4.14 	(ii) has two or more years of negative net operating income;
4.15 	(iii) has two or more years with a debt service coverage ratio less than one; or
4.16 	(iv) has necessary costs of repair, replacement, or maintenance that exceed the project 
4.17 	reserves available for those purposes.

4.18 	Sec. 4. Minnesota Statutes 2022, section 462A.03, is amended by adding a subdivision to 
4.19 	read:
4.20 		Subd. 6a.Recapitalization. "Recapitalization" means financing for the physical and 
4.21 	financial needs of a distressed building, including restructuring and forgiveness of amortizing 
4.22 	and deferred debt, principal and interest paydown, interest rate write-down, deferral of debt 
4.23 	payments, mortgage payment forbearance, deferred maintenance, security services, property 
4.24 	insurance, reasonably necessary capital improvements, funding of reserves for supportive 
4.25 	services, and property operations. Recapitalization may include reimbursement to a nonprofit 
4.26 	sponsor or owner for expenditures that would have otherwise qualified for recapitalization.

4.27 	Sec. 5. Minnesota Statutes 2022, section 462A.05, subdivision 3b, is amended to read:
4.28 		Subd. 3b.Refinancing mortgages. The agency may make loans for recapitalization or 
4.29 	to refinance the existing indebtedness, of owners of rental property, secured by federally 
4.30 	assisted housing for the purpose of obtaining agreement of the owner to participate in the 
4.31 	federally assisted rental housing program and to extend any existing low-income affordability 
5.1 	restrictions on the housing for the maximum term permitted. For purposes of this subdivision, 
5.2 	"federally assisted rental housing" includes housing that is:
5.3 	(1) subject to a project-based housing or rental assistance payment contract funded by 
5.4 	the federal government;
5.5 	(2) financed by the Rural Housing Service of the United States Department of Agriculture 
5.6 	under section 515 of the Housing Act of 1949, as amended; or
5.7 	(3) financed under section 236; section 221(d)(3) below market interest rate program; 
5.8 	section 202; or section 811 of the Housing and Urban Development Act of 1968, as amended.

5.9 	Sec. 6. Minnesota Statutes 2023 Supplement, section 462A.05, subdivision 14, is amended 
5.10 	to read:
5.11 		Subd. 14.Rehabilitation loans. It may agree to purchase, make, or otherwise participate 
5.12 	in the making, and may enter into commitments for the purchase, making, or participation 
5.13 	in the making, of eligible loans for rehabilitation, with terms and conditions as the agency 
5.14 	deems advisable, to persons and families of low and moderate income, and to owners of 
5.15 	existing residential housing for occupancy by such persons and families, for the rehabilitation 
5.16 	of existing residential housing owned by them. Rehabilitation may include the addition or 
5.17 	rehabilitation of a detached accessory dwelling unit. The loans may be insured or uninsured 
5.18 	and may be made with security, or may be unsecured, as the agency deems advisable. The 
5.19 	loans may be in addition to or in combination with long-term eligible mortgage loans under 
5.20 	subdivision 3. They may be made in amounts sufficient to refinance existing indebtedness 
5.21 	secured by the property, if refinancing is determined by the agency to be necessary to permit 
5.22 	the owner to meet the owner's housing cost without expending an unreasonable portion of 
5.23 	the owner's income thereon. No loan for rehabilitation shall be made unless the agency 
5.24 	determines that the loan will be used primarily to make the housing more desirable to live 
5.25 	in, to increase the market value of the housing, for compliance with state, county or municipal 
5.26 	building, housing maintenance, fire, health or similar codes and standards applicable to 
5.27 	housing, or to accomplish energy conservation related improvements decarbonization, 
5.28 	climate resiliency, and other qualified projects. In unincorporated areas and municipalities 
5.29 	not having codes and standards, the agency may, solely for the purpose of administering 
5.30 	the provisions of this chapter, establish codes and standards. No loan under this subdivision 
5.31 	for the rehabilitation of owner-occupied housing shall be denied solely because the loan 
5.32 	will not be used for placing the owner-occupied residential housing in full compliance with 
5.33 	all state, county, or municipal building, housing maintenance, fire, health, or similar codes 
5.34 	and standards applicable to housing. Rehabilitation loans shall be made only when the 
6.1 	agency determines that financing is not otherwise available, in whole or in part, from private 
6.2 	lenders upon equivalent terms and conditions. Accessibility rehabilitation loans authorized 
6.3 	under this subdivision may be made to eligible persons and families without limitations 
6.4 	relating to the maximum incomes of the borrowers if:
6.5 	(1) the borrower or a member of the borrower's family requires a level of care provided 
6.6 	in a hospital, skilled nursing facility, or intermediate care facility for persons with 
6.7 	developmental disabilities;
6.8 	(2) home care is appropriate; and
6.9 	(3) the improvement will enable the borrower or a member of the borrower's family to 
6.10 	reside in the housing.
6.11 	The agency may waive any requirement that the housing units in a residential housing 
6.12 	development be rented to persons of low and moderate income if the development consists 
6.13 	of four or fewer dwelling units, one of which is occupied by the owner.

6.14 	Sec. 7. Minnesota Statutes 2022, section 462A.05, subdivision 14a, is amended to read:
6.15 		Subd. 14a.Rehabilitation loans; existing owner-occupied residential housing. It may 
6.16 	make loans to persons and families of low and moderate income to rehabilitate or to assist 
6.17 	in rehabilitating existing residential housing owned and occupied by those persons or 
6.18 	families. Rehabilitation may include replacement of manufactured homes. No loan shall be 
6.19 	made unless the agency determines that the loan will be used primarily for rehabilitation 
6.20 	work necessary for health or safety, essential accessibility improvements, or to improve the 
6.21 	energy efficiency of, clean energy, greenhouse gas emissions reductions, climate resiliency, 
6.22 	and other qualified projects in the dwelling. No loan for rehabilitation of owner-occupied 
6.23 	residential housing shall be denied solely because the loan will not be used for placing the 
6.24 	residential housing in full compliance with all state, county or municipal building, housing 
6.25 	maintenance, fire, health or similar codes and standards applicable to housing. The amount 
6.26 	of any loan shall not exceed the lesser of (a) a maximum loan amount determined under 
6.27 	rules adopted by the agency not to exceed $37,500, or (b) the actual cost of the work 
6.28 	performed, or (c) that portion of the cost of rehabilitation which the agency determines 
6.29 	cannot otherwise be paid by the person or family without the expenditure of an unreasonable 
6.30 	portion of the income of the person or family. Loans made in whole or in part with federal 
6.31 	funds may exceed the maximum loan amount to the extent necessary to comply with federal 
6.32 	lead abatement requirements prescribed by the funding source. In making loans, the agency 
6.33 	shall determine the circumstances under which and the terms and conditions under which 
6.34 	all or any portion of the loan will be repaid and shall determine the appropriate security for 
7.1 	the repayment of the loan. Loans pursuant to this subdivision may be made with or without 
7.2 	interest or periodic payments.

7.3 	Sec. 8. Minnesota Statutes 2022, section 462A.05, subdivision 14b, is amended to read:
7.4 		Subd. 14b.Energy conservation decarbonization and climate resiliency loans. It 
7.5 	may agree to purchase, make, or otherwise participate in the making, and may enter into 
7.6 	commitments for the purchase, making, or participating in the making, of loans to persons 
7.7 	and families, without limitations relating to the maximum incomes of the borrowers, to 
7.8 	assist in energy conservation rehabilitation measures decarbonization, climate resiliency, 
7.9 	and other qualified projects for existing housing owned by those persons or families 
7.10 	including, but not limited to: weatherstripping and caulking; chimney construction or 
7.11 	improvement; furnace or space heater repair, cleaning or replacement; central air conditioner 
7.12 	installation, repair, maintenance, or replacement; air source or geothermal heat pump 
7.13 	installation, repair, maintenance, or replacement; insulation; windows and doors; and 
7.14 	structural or other directly related repairs or installations essential for energy conservation
7.15 	decarbonization, climate resiliency, and other qualified projects. Loans shall be made only 
7.16 	when the agency determines that financing is not otherwise available, in whole or in part, 
7.17 	from private lenders upon equivalent terms and conditions. Loans under this subdivision 
7.18 	or subdivision 14 may:
7.19 	(1) be integrated with a utility's on-bill repayment program approved under section 
7.20 	216B.241, subdivision 5d; and
7.21 	(2) also be made for the installation of on-site solar energy or energy storage systems.

7.22 	Sec. 9. Minnesota Statutes 2022, section 462A.05, subdivision 15, is amended to read:
7.23 		Subd. 15.Rehabilitation grants. (a) It may make grants to persons and families of low 
7.24 	and moderate income to pay or to assist in paying a loan made pursuant to subdivision 14, 
7.25 	or to rehabilitate or to assist in rehabilitating existing residential housing owned or occupied 
7.26 	by such persons or families. For the purposes of this section, persons of low and moderate 
7.27 	income include administrators appointed pursuant to section 504B.425, paragraph (d). No 
7.28 	grant shall be made unless the agency determines that the grant will be used primarily to 
7.29 	make the housing more desirable to live in, to increase the market value of the housing or 
7.30 	for compliance with state, county or municipal building, housing maintenance, fire, health 
7.31 	or similar codes and standards applicable to housing, or to accomplish energy conservation 
7.32 	related improvements decarbonization, climate resiliency, or other qualified projects. In 
7.33 	unincorporated areas and municipalities not having codes and standards, the agency may, 
8.1 	solely for the purpose of administering this provision, establish codes and standards. No 
8.2 	grant for rehabilitation of owner occupied residential housing shall be denied solely because 
8.3 	the grant will not be used for placing the residential housing in full compliance with all 
8.4 	state, county or municipal building, housing maintenance, fire, health or similar codes and 
8.5 	standards applicable to housing. The amount of any grant shall not exceed the lesser of (a) 
8.6 	$6,000, or (b) the actual cost of the work performed, or (c) that portion of the cost of 
8.7 	rehabilitation which the agency determines cannot otherwise be paid by the person or family 
8.8 	without spending an unreasonable portion of the income of the person or family thereon. 
8.9 	In making grants, the agency shall determine the circumstances under which and the terms 
8.10 	and conditions under which all or any portion thereof will be repaid and shall determine the 
8.11 	appropriate security should repayment be required.
8.12 	(b) The agency may also make grants to rehabilitate or to assist in rehabilitating housing 
8.13 	under this subdivision to persons of low and moderate income for the purpose of qualifying 
8.14 	as foster parents.

8.15 	Sec. 10. Minnesota Statutes 2022, section 462A.05, subdivision 15b, is amended to read:
8.16 		Subd. 15b.Energy conservation decarbonization and climate resiliency grants. (a) 
8.17 	It may make grants to assist in energy conservation rehabilitation measures decarbonization, 
8.18 	climate resiliency, and other qualified projects for existing owner occupied housing including, 
8.19 	but not limited to: insulation, storm windows and doors, furnace or space heater repair, 
8.20 	cleaning or replacement, chimney construction or improvement, weatherstripping and 
8.21 	caulking, and structural or other directly related repairs, or installations essential for energy 
8.22 	conservation decarbonization, climate resiliency, and other qualified projects. The grant to 
8.23 	any household shall not exceed $2,000.
8.24 	(b) To be eligible for an emergency energy conservation decarbonization and climate 
8.25 	resiliency grant, a household must be certified as eligible to receive emergency residential 
8.26 	heating assistance under either the federal or the state program, and either (1) have had a 
8.27 	heating cost for the preceding heating season that exceeded 120 percent of the regional 
8.28 	average for the preceding heating season for that energy source as determined by the 
8.29 	commissioner of employment and economic development, or (2) be eligible to receive a 
8.30 	federal energy conservation grant, but be precluded from receiving the grant because of a 
8.31 	need for directly related repairs that cannot be paid for under the federal program. The 
8.32 	Housing Finance Agency shall make a reasonable effort to determine whether other state 
8.33 	or federal loan and grant programs are available and adequate to finance the intended 
8.34 	improvements. An emergency energy conservation grant may be made in conjunction with 
9.1 	grants or loans from other state or federal programs that finance other needed rehabilitation 
9.2 	work. The receipt of a grant pursuant to this section shall not affect the applicant's eligibility 
9.3 	for other Housing Finance Agency loan or grant programs.

9.4 	Sec. 11. Minnesota Statutes 2022, section 462A.05, subdivision 21, is amended to read:
9.5 		Subd. 21.Rental property loans. The agency may make or purchase loans to owners 
9.6 	of rental property that is occupied or intended for occupancy primarily by low- and 
9.7 	moderate-income tenants and which does not comply with the standards established in 
9.8 	section 326B.106, subdivision 1, for the purpose of energy improvements decarbonization, 
9.9 	climate resiliency, and other qualified projects necessary to bring the property into full or 
9.10 	partial compliance with these standards. For property which meets the other requirements 
9.11 	of this subdivision, a loan may also be used for moderate rehabilitation of the property. The 
9.12 	authority granted in this subdivision is in addition to and not in limitation of any other 
9.13 	authority granted to the agency in this chapter. The limitations on eligible mortgagors 
9.14 	contained in section 462A.03, subdivision 13, do not apply to loans under this subdivision. 
9.15 	Loans for the improvement of rental property pursuant to this subdivision may contain 
9.16 	provisions that repayment is not required in whole or in part subject to terms and conditions 
9.17 	determined by the agency to be necessary and desirable to encourage owners to maximize 
9.18 	rehabilitation of properties.

9.19 	Sec. 12. Minnesota Statutes 2022, section 462A.05, subdivision 23, is amended to read:
9.20 		Subd. 23.Insuring financial institution loans. The agency may participate in loans or 
9.21 	establish a fund to insure loans, or portions of loans, that are made by any banking institution, 
9.22 	savings association, or other lender approved by the agency, organized under the laws of 
9.23 	this or any other state or of the United States having an office in this state, to owners of 
9.24 	renter-occupied homes or apartments that do not comply with standards set forth in section 
9.25 	326B.106, subdivision 1, without limitations relating to the maximum incomes of the owners 
9.26 	or tenants. The proceeds of the insured portion of the loan must be used to pay the costs of 
9.27 	improvements, including all related structural and other improvements, that will reduce 
9.28 	energy consumption, that will decarbonize, and that will ensure the climate resiliency of 
9.29 	housing.

9.30 	Sec. 13. Minnesota Statutes 2023 Supplement, section 462A.05, subdivision 45, is amended 
9.31 	to read:
9.32 		Subd. 45.Indian Tribes. Notwithstanding any other provision in this chapter, at its 
9.33 	discretion the agency may make any federally recognized Indian Tribe in Minnesota, or 
10.1 	their associated Tribally Designated Housing Entity (TDHE) as defined by United States 
10.2 	Code, title 25, section 4103(22), eligible for agency funding authorized under this chapter.

10.3 	Sec. 14. [462A.051] WAGE THEFT PREVENTION AND USE OF RESPONSIBLE 
10.4 	CONTRACTORS.
10.5 		Subdivision 1.Application. This section applies to all forms of financial assistance 
10.6 	provided by the Minnesota Housing Finance Agency, as well as the allocation of federal 
10.7 	low-income housing credits, for the development, construction, rehabilitation, renovation, 
10.8 	or retrofitting of multiunit residential housing, including loans, grants, tax credits, loan 
10.9 	guarantees, loan insurance, and other financial assistance.
10.10 		Subd. 2.Disclosures. An applicant for financial assistance under this chapter shall 
10.11 	disclose in the application any conviction, court judgment, agency determination, legal 
10.12 	settlement, ongoing criminal or civil investigation, or lawsuit involving alleged violations 
10.13 	of sections 177.24, 177.25, 177.32, 177.41 to 177.44, 181.03, 181.101, 181.13, 181.14, 
10.14 	181.722, 181.723, 181A.01 to 181A.12, or 609.52, subdivision 2, paragraph (a), clause (19), 
10.15 	or United States Code, title 29, sections 201 to 219, or title 40, sections 3141 to 3148, arising 
10.16 	or occurring within the preceding five years on a construction project owned or managed 
10.17 	by the developer or owner of the proposed project, the intended general contractor for the 
10.18 	proposed project, or any of their respective parent companies, subsidiaries, or other affiliated 
10.19 	companies. An applicant for financial assistance shall make the disclosures required by this 
10.20 	subdivision available within 14 calendar days to any member of the public who submits a 
10.21 	request by mail or electronic correspondence. The applicant shall designate a public 
10.22 	information officer who will serve as a point of contact for public inquiries.
10.23 		Subd. 3.Responsible contractors required. As a condition of receiving financial 
10.24 	assistance, the applicant shall verify that every contractor or subcontractor of any tier 
10.25 	performing work on the proposed project meets the minimum criteria to be a responsible 
10.26 	contractor under section 16C.285, subdivision 3. This verification must meet the criteria 
10.27 	defined in section 16C.285, subdivision 4.
10.28 		Subd. 4.Certified contractor lists. As a condition of receiving financial assistance, the 
10.29 	applicant shall have available at the development site main office a list of every contractor 
10.30 	and subcontractor of any tier that performs work or is expected to perform work on the 
10.31 	proposed project, as described in section 16C.285, subdivision 5, including the following 
10.32 	information for each contractor and subcontractor: business name, scope of work, Department 
10.33 	of Labor and Industry registration number, business name of the entity contracting its 
10.34 	services, business telephone number and email address, and actual or anticipated number 
11.1 	of workers on the project. The applicant shall establish the initial contractor list 30 days 
11.2 	before the start of construction and shall update the list each month thereafter until 
11.3 	construction is complete. The applicant shall post the contractor list in a conspicuous location 
11.4 	at the project site and make the contractor list available to members of the public upon 
11.5 	request.
11.6 		Subd. 5.Wage theft remedy. If any contractor or subcontractor of any tier is found to 
11.7 	have failed to pay statutorily required wages under section 609.52, subdivision 1, clause 
11.8 	(13), on a project receiving financial assistance or an allocation of federal low-income 
11.9 	housing tax credits from or through the agency, the recipient is responsible for correcting 
11.10 	the violation.
11.11 		Subd. 6.Wage theft prevention plans; disqualification. (a) If any contractor or 
11.12 	subcontractor of any tier fails to pay statutorily required wages on a project receiving 
11.13 	financial assistance from or through the agency as determined by an enforcement entity, 
11.14 	the recipient must have a wage theft prevention plan to be eligible for further financial 
11.15 	assistance from the agency. The project developer's wage theft prevention plan must describe 
11.16 	detailed measures that the project developer and its general contractor have taken and are 
11.17 	committed to take to prevent wage theft on the project, including provisions in any 
11.18 	construction contracts and subcontracts on the project. The plan must be submitted to the 
11.19 	Department of Labor and Industry who will review the plan. The Department of Labor and 
11.20 	Industry may require the project developer to amend the plan or adopt policies or protocols 
11.21 	in the plan. Once approved by the Department of Labor and Industry, the wage theft 
11.22 	prevention plan must be submitted by the project developer to the agency with any subsequent 
11.23 	application for financial assistance from the agency. Such wage theft prevention plans shall 
11.24 	be made available to members of the public by the agency upon request.
11.25 	(b) A developer is disqualified from receiving financial assistance from or through the 
11.26 	agency for three years if any of the developer's contractors or subcontractors of any tier are 
11.27 	found by an enforcement agency to have, within three years after entering into a wage theft 
11.28 	prevention plan under paragraph (a), failed to pay statutorily required wages on a project 
11.29 	receiving financial assistance from or through the agency for a total underpayment of $25,000 
11.30 	or more.
11.31 		Subd. 7.Enforcement. The agency may deny an application for financial assistance 
11.32 	that does not comply with this section or if the applicant refuses to enter into the agreements 
11.33 	required by this section. The agency may withhold financial assistance that has been 
11.34 	previously approved if the agency determines that the applicant has engaged in unacceptable 
11.35 	practices by failing to comply with this section until the violation is cured.

12.1 	EFFECTIVE DATE. This section is effective for financial assistance provided after 
12.2 	August 1, 2024, except Minnesota Statutes, section 462A.051, subdivision 2, does not apply 
12.3 	to requests for proposals that were initiated prior to August 1, 2024.

12.4 	Sec. 15. Minnesota Statutes 2022, section 462A.07, is amended by adding a subdivision 
12.5 	to read:
12.6 		Subd. 18.Rent and income limits. Notwithstanding any law to the contrary, to promote 
12.7 	efficiency in program administration, underwriting, and compliance, the commissioner may 
12.8 	adjust income or rent limits for any multifamily capital funding program authorized under 
12.9 	state law to align with federal rent or income limits in sections 42 and 142 of the Internal 
12.10 	Revenue Code of 1986, as amended. Adjustments made under this subdivision are exempt 
12.11 	from the rulemaking requirements of chapter 14.

12.12 	Sec. 16. Minnesota Statutes 2022, section 462A.07, is amended by adding a subdivision 
12.13 	to read:
12.14 		Subd. 19.Eligibility for agency programs.  The agency may determine that a household 
12.15 	or project unit meets the rent or income requirements for a program if the household or unit 
12.16 	receives or participates in income-based state or federal public assistance benefits, including 
12.17 	but not limited to:
12.18 	(1) child care assistance programs under chapter 119B;
12.19 	(2) general assistance, Minnesota supplemental aid, or food support under chapter 256D;
12.20 	(3) housing support under chapter 256I;
12.21 	(4) Minnesota family investment program and diversionary work program under chapter 
12.22 	256J; and
12.23 	(5) economic assistance programs under chapter 256P.

12.24 	Sec. 17. Minnesota Statutes 2022, section 462A.202, subdivision 3a, is amended to read:
12.25 		Subd. 3a.Permanent rental housing. The agency may make loans, with or without 
12.26 	interest, to cities and counties to finance the construction, acquisition, or rehabilitation of 
12.27 	affordable, permanent, publicly owned rental housing, including housing owned by a public 
12.28 	corporation created pursuant to section 469.0121. Loans made under this subdivision are 
12.29 	subject to the restrictions of subdivision 7. In making loans under this subdivision, the 
12.30 	agency shall give priority to projects that increase the supply of affordable family housing.

13.1 	Sec. 18. [462A.2096] ANNUAL PROJECTION OF EMERGENCY RENTAL 
13.2 	ASSISTANCE NEEDS.
13.3 	The agency must develop a projection of emergency rental assistance needs in 
13.4 	consultation with the commissioner of human services and representatives from county and 
13.5 	Tribal housing administrators and housing nonprofit agencies. The projection must identify 
13.6 	the amount of funding required to meet all emergency rental assistance needs, including 
13.7 	the family homelessness prevention and assistance program, the emergency assistance 
13.8 	program, and emergency general assistance. By January 15 each year, the commissioner 
13.9 	must submit a report on the projected need for emergency rental assistance to the chairs and 
13.10 	ranking minority members of the legislative committees having jurisdiction over housing 
13.11 	and human services finance and policy.

13.12 	Sec. 19. Minnesota Statutes 2022, section 462A.21, subdivision 7, is amended to read:
13.13 		Subd. 7.Energy efficiency loans. The agency may make loans to low and moderate 
13.14 	income persons who own existing residential housing for the purpose of improving the 
13.15 	efficient energy utilization decarbonization and climate resiliency of the housing. Permitted 
13.16 	improvements shall include installation or upgrading of ceiling, wall, floor and duct 
13.17 	insulation, storm windows and doors, and caulking and weatherstripping. The improvements 
13.18 	shall not be inconsistent with the energy standards as promulgated as part of the State 
13.19 	Building Code; provided that the improvements need not bring the housing into full 
13.20 	compliance with the energy standards. Any loan for such purpose shall be made only upon 
13.21 	determination by the agency that such loan is not otherwise available, wholly or in part, 
13.22 	from private lenders upon equivalent terms and conditions. The agency may promulgate 
13.23 	rules as necessary to implement and make specific the provisions of this subdivision. The 
13.24 	rules shall be designed to permit the state, to the extent not inconsistent with this chapter, 
13.25 	to seek federal grants or loans for energy purposes decarbonization, climate resiliency, and 
13.26 	other qualified projects.

13.27 	Sec. 20. Minnesota Statutes 2022, section 462A.21, subdivision 8b, is amended to read:
13.28 		Subd. 8b.Family rental housing. It may establish a family rental housing assistance 
13.29 	program to provide loans or direct rental subsidies for housing for families with incomes 
13.30 	of up to 80 percent of state median income, or to provide grants for the operating cost of 
13.31 	public housing. Priority must be given to those developments with resident families with 
13.32 	the lowest income. The development may be financed by the agency or other public or 
13.33 	private lenders. Direct rental subsidies must be administered by the agency for the benefit 
14.1 	of eligible families. Financial assistance provided under this subdivision to recipients of aid 
14.2 	to families with dependent children must be in the form of vendor payments whenever 
14.3 	possible. Loans, grants, and direct rental subsidies under this subdivision may be made only 
14.4 	with specific appropriations by the legislature. The limitations on eligible mortgagors 
14.5 	contained in section 462A.03, subdivision 13, do not apply to loans for the recapitalization 
14.6 	or rehabilitation of existing housing under this subdivision.

14.7 	Sec. 21. Minnesota Statutes 2023 Supplement, section 462A.22, subdivision 1, is amended 
14.8 	to read:
14.9 		Subdivision 1.Debt ceiling. The aggregate principal amount of general obligation bonds 
14.10 	and notes which are outstanding at any time, excluding the principal amount of any bonds 
14.11 	and notes refunded by the issuance of new bonds or notes, shall not exceed the sum of 
14.12 	$5,000,000,000 $7,000,000,000.

14.13 	Sec. 22. Minnesota Statutes 2022, section 462A.222, is amended by adding a subdivision 
14.14 	to read:
14.15 		Subd. 5.Limitation on rental increases. (a) This subdivision applies to any project 
14.16 	that is restricted to seniors, as defined by section 462A.37, subdivision 1, paragraph (h), 
14.17 	and that receives low-income housing tax credits provided under section 42 of the Internal 
14.18 	Revenue Code of 1986, as amended. The rent in a project may not increase in any 12-month 
14.19 	period by a percentage more than the greater of:
14.20 	(1) the percentage that benefit amounts for Social Security or Supplemental Security 
14.21 	Income recipients were increased pursuant to United States Code, title 42, sections 415(i) 
14.22 	and 1382f, in the preceding 12-month period; or
14.23 	(2) zero percent.
14.24 	(b) This subdivision does not apply to projects owned by a nonprofit entity or to a unit 
14.25 	occupied by an individual receiving ongoing government-subsidized rental assistance.

14.26 	Sec. 23. Minnesota Statutes 2022, section 462A.35, subdivision 2, is amended to read:
14.27 		Subd. 2.Expending funds. The agency may expend the money in the Minnesota 
14.28 	manufactured home relocation trust fund to the extent necessary to carry out the objectives 
14.29 	of section 327C.095, subdivision 13, by making payments to manufactured home owners, 
14.30 	or other parties approved by the third-party neutral, under subdivision 13, paragraphs (a) 
14.31 	and (e), and to pay the costs of administering the fund. Money in the fund is appropriated 
15.1 	to the agency for these purposes and to the commissioner of management and budget to pay 
15.2 	costs incurred by the commissioner of management and budget to administer the fund.

15.3 	Sec. 24. Minnesota Statutes 2023 Supplement, section 462A.37, subdivision 2, is amended 
15.4 	to read:
15.5 		Subd. 2.Authorization. (a) The agency may issue up to $30,000,000 in aggregate 
15.6 	principal amount of housing infrastructure bonds in one or more series to which the payment 
15.7 	made under this section may be pledged. The housing infrastructure bonds authorized in 
15.8 	this subdivision may be issued to fund loans, or grants for the purposes of clauses (4) and 
15.9 	(7), on terms and conditions the agency deems appropriate, made for one or more of the 
15.10 	following purposes:
15.11 	(1) to finance the costs of the construction, acquisition, recapitalization, and rehabilitation 
15.12 	of supportive housing where at least 50 percent of units are set aside for individuals and 
15.13 	families who are without a permanent residence;
15.14 	(2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned 
15.15 	housing to be used for affordable rental housing or for affordable home ownership and the 
15.16 	costs of new construction of rental housing on abandoned or foreclosed property where the 
15.17 	existing structures will be demolished or removed;
15.18 	(3) to finance that portion of the costs of acquisition of property that is attributable to 
15.19 	the land to be leased by community land trusts to low- and moderate-income home buyers;
15.20 	(4) to finance the acquisition, improvement, and infrastructure of manufactured home 
15.21 	parks under section 462A.2035, subdivision 1b;
15.22 	(5) to finance the costs of acquisition, rehabilitation, adaptive reuse, recapitalization, or 
15.23 	new construction of senior housing;
15.24 	(6) to finance the costs of acquisition, rehabilitation, recapitalization, and replacement 
15.25 	of federally assisted rental housing and for the refinancing of costs of the construction, 
15.26 	acquisition, and rehabilitation of federally assisted rental housing, including providing funds 
15.27 	to refund, in whole or in part, outstanding bonds previously issued by the agency or another 
15.28 	government unit to finance or refinance such costs;
15.29 	(7) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction 
15.30 	of single-family housing; and
15.31 	(8) to finance the costs of construction, acquisition, recapitalization, and rehabilitation 
15.32 	of permanent housing that is affordable to households with incomes at or below 50 percent 
16.1 	of the area median income for the applicable county or metropolitan area as published by 
16.2 	the Department of Housing and Urban Development, as adjusted for household size;
16.3 	(9) to finance the recapitalization of a distressed building; and
16.4 	(10) to finance the costs of construction, acquisition, recapitalization, rehabilitation, 
16.5 	conversion, and development of cooperatively owned housing created under chapter 308A 
16.6 	or 308B that is affordable to low- and moderate-income households.
16.7 	(b) Among comparable proposals for permanent supportive housing, preference shall 
16.8 	be given to permanent supportive housing for veterans and other individuals or families 
16.9 	who:
16.10 	(1) either have been without a permanent residence for at least 12 months or at least four 
16.11 	times in the last three years; or
16.12 	(2) are at significant risk of lacking a permanent residence for 12 months or at least four 
16.13 	times in the last three years.
16.14 	(c) Among comparable proposals for senior housing, the agency must give priority to 
16.15 	requests for projects that:
16.16 	(1) demonstrate a commitment to maintaining the housing financed as affordable to 
16.17 	senior households;
16.18 	(2) leverage other sources of funding to finance the project, including the use of 
16.19 	low-income housing tax credits;
16.20 	(3) provide access to services to residents and demonstrate the ability to increase physical 
16.21 	supports and support services as residents age and experience increasing levels of disability; 
16.22 	and
16.23 	(4) include households with incomes that do not exceed 30 percent of the median 
16.24 	household income for the metropolitan area.
16.25 	(d) To the extent practicable, the agency shall balance the loans made between projects 
16.26 	in the metropolitan area and projects outside the metropolitan area. Of the loans made to 
16.27 	projects outside the metropolitan area, the agency shall, to the extent practicable, balance 
16.28 	the loans made between projects in counties or cities with a population of 20,000 or less, 
16.29 	as established by the most recent decennial census, and projects in counties or cities with 
16.30 	populations in excess of 20,000.
17.1 	(e) Among comparable proposals for permanent housing, the agency must give preference 
17.2 	to projects that will provide housing that is affordable to households at or below 30 percent 
17.3 	of the area median income.
17.4 	(f) If a loan recipient uses the loan for new construction or substantial rehabilitation as 
17.5 	defined by the agency on a building containing more than four units, the loan recipient must 
17.6 	construct, convert, or otherwise adapt the building to include:
17.7 	(1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
17.8 	accessible units, as defined by section 1002 of the current State Building Code Accessibility 
17.9 	Provisions for Dwelling Units in Minnesota, and include at least one roll-in shower in at 
17.10 	least one accessible unit as defined by section 1002 of the current State Building Code 
17.11 	Accessibility Provisions for Dwelling Units in Minnesota; and
17.12 	(2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
17.13 	sensory-accessible units that include:
17.14 	(A) soundproofing between shared walls for first and second floor units;
17.15 	(B) no florescent lighting in units and common areas;
17.16 	(C) low-fume paint;
17.17 	(D) low-chemical carpet; and
17.18 	(E) low-chemical carpet glue in units and common areas.
17.19 	Nothing in this paragraph relieves a project funded by the agency from meeting other 
17.20 	applicable accessibility requirements.

17.21 	Sec. 25. Minnesota Statutes 2022, section 462A.37, is amended by adding a subdivision 
17.22 	to read:
17.23 		Subd. 2j.Additional authorization. In addition to the amount authorized in subdivisions 
17.24 	2 to 2i, the agency may issue up to $50,000,000.

17.25 	Sec. 26. Minnesota Statutes 2023 Supplement, section 462A.37, subdivision 5, is amended 
17.26 	to read:
17.27 		Subd. 5.Additional appropriation. (a) The agency must certify annually to the 
17.28 	commissioner of management and budget the actual amount of annual debt service on each 
17.29 	series of bonds issued under this section.
18.1 	(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure 
18.2 	bonds issued under subdivision 2a, or housing infrastructure bonds issued to refund those 
18.3 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
18.4 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
18.5 	the amount certified under paragraph (a), not to exceed $6,400,000 annually. The amounts 
18.6 	necessary to make the transfers are appropriated from the general fund to the commissioner 
18.7 	of management and budget.
18.8 	(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure 
18.9 	bonds issued under subdivision 2b, or housing infrastructure bonds issued to refund those 
18.10 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
18.11 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
18.12 	the amount certified under paragraph (a), not to exceed $800,000 annually. The amounts 
18.13 	necessary to make the transfers are appropriated from the general fund to the commissioner 
18.14 	of management and budget.
18.15 	(d) Each July 15, beginning in 2019 and through 2040, if any housing infrastructure 
18.16 	bonds issued under subdivision 2c, or housing infrastructure bonds issued to refund those 
18.17 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
18.18 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
18.19 	the amount certified under paragraph (a), not to exceed $2,800,000 annually. The amounts 
18.20 	necessary to make the transfers are appropriated from the general fund to the commissioner 
18.21 	of management and budget.
18.22 	(e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure 
18.23 	bonds issued under subdivision 2d, or housing infrastructure bonds issued to refund those 
18.24 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
18.25 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
18.26 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
18.27 	appropriated from the general fund to the commissioner of management and budget.
18.28 	(f) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure 
18.29 	bonds issued under subdivision 2e, or housing infrastructure bonds issued to refund those 
18.30 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
18.31 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
18.32 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
18.33 	appropriated from the general fund to the commissioner of management and budget.
19.1 	(g) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure 
19.2 	bonds issued under subdivision 2f, or housing infrastructure bonds issued to refund those 
19.3 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
19.4 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
19.5 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
19.6 	appropriated from the general fund to the commissioner of management and budget.
19.7 	(h) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure 
19.8 	bonds issued under subdivision 2g, or housing infrastructure bonds issued to refund those 
19.9 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
19.10 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
19.11 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
19.12 	appropriated from the general fund to the commissioner of management and budget.
19.13 	(i) Each July 15, beginning in 2023 and through 2044, if any housing infrastructure 
19.14 	bonds issued under subdivision 2h, or housing infrastructure bonds issued to refund those 
19.15 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
19.16 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
19.17 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
19.18 	appropriated from the general fund to the commissioner of management and budget.
19.19 	(j) Each July 15, beginning in 2026 and through 2047, if any housing infrastructure 
19.20 	bonds issued under subdivision 2j, or housing infrastructure bonds issued to refund those 
19.21 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
19.22 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
19.23 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
19.24 	appropriated from the general fund to the commissioner of management and budget.
19.25 	(j)(k) The agency may pledge to the payment of the housing infrastructure bonds the 
19.26 	payments to be made by the state under this section.

19.27 	Sec. 27. Minnesota Statutes 2023 Supplement, section 462A.39, subdivision 2, is amended 
19.28 	to read:
19.29 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
19.30 	meanings given.
19.31 	(b) "Eligible project area" means a home rule charter or statutory city located outside 
19.32 	of a metropolitan county as defined in section 473.121, subdivision 4, with a population 
19.33 	exceeding 500; a community that has a combined population of 1,500 residents located 
20.1 	within 15 miles of a home rule charter or statutory city located outside a metropolitan county 
20.2 	as defined in section 473.121, subdivision 4; federally recognized Tribal reservations; or 
20.3 	an area served by a joint county-city economic development authority.
20.4 	(c) "Joint county-city economic development authority" means an economic development 
20.5 	authority formed under Laws 1988, chapter 516, section 1, as a joint partnership between 
20.6 	a city and county and excluding those established by the county only.
20.7 	(d) "Market rate residential rental properties" means properties that are rented at market 
20.8 	value, including new modular homes, new manufactured homes, and new manufactured 
20.9 	homes on leased land or in a manufactured home park, and may include rental developments 
20.10 	that have a portion of income-restricted units.
20.11 	(e) "Qualified expenditure" means expenditures for market rate residential rental 
20.12 	properties including acquisition of property; construction of improvements; and provisions 
20.13 	of loans or subsidies, grants, interest rate subsidies, public infrastructure, and related financing 
20.14 	costs.

20.15 	Sec. 28. Minnesota Statutes 2022, section 462A.40, subdivision 2, is amended to read:
20.16 		Subd. 2.Use of funds; grant and loan program. (a) The agency may award grants and 
20.17 	loans to be used for multifamily and single family developments for persons and families 
20.18 	of low and moderate income. Allowable use of the funds include: gap financing, as defined 
20.19 	in section 462A.33, subdivision 1; new construction; acquisition; rehabilitation; demolition 
20.20 	or removal of existing structures; construction financing; permanent financing; interest rate 
20.21 	reduction; and refinancing.
20.22 	(b) The agency may give preference for grants and loans to comparable proposals that 
20.23 	include regulatory changes or waivers that result in identifiable cost avoidance or cost 
20.24 	reductions, including but not limited to increased density, flexibility in site development 
20.25 	standards, or zoning code requirements.
20.26 	(c) The agency shall separately set aside:
20.27 	(1) at least ten percent of the financing under this section for housing units located in a 
20.28 	township or city with a population of 2,500 or less that is located outside the metropolitan 
20.29 	area, as defined in section 473.121, subdivision 2;
20.30 	(2) at least 35 percent of the financing under this section for housing for persons and 
20.31 	families whose income is 50 percent or less of the area median income for the applicable 
20.32 	county or metropolitan area as published by the Department of Housing and Urban 
20.33 	Development, as adjusted for household size; and
21.1 	(3) at least 25 percent of the financing under this section for single-family housing.
21.2 	(d) If by September 1 of each year the agency does not receive requests to use all of the 
21.3 	amounts set aside under paragraph (c), the agency may use any remaining financing for 
21.4 	other projects eligible under this section.

21.5 	Sec. 29. Minnesota Statutes 2022, section 462A.40, subdivision 3, is amended to read:
21.6 		Subd. 3.Eligible recipients; definitions; restrictions; use of funds. (a) The agency 
21.7 	may award a grant or a loan to any recipient that qualifies under subdivision 2. The agency 
21.8 	must not award a grant or a loan to a disqualified individual or disqualified business.
21.9 	(b) For the purposes of this subdivision disqualified individual means an individual who:
21.10 	(1) an individual who or an individual whose immediate family member made a 
21.11 	contribution to the account in the current or prior taxable year and received a credit certificate;
21.12 	(2) an individual who or an individual whose immediate family member owns the housing 
21.13 	for which the grant or loan will be used and is using that housing as their domicile;
21.14 	(3) an individual who meets the following criteria:
21.15 	(i) the individual is an officer or principal of a business entity; and
21.16 	(ii) that business entity made a contribution to the account in the current or previous 
21.17 	taxable year and received a credit certificate; or
21.18 	(4) an individual who meets the following criteria:
21.19 	(i) the individual directly owns, controls, or holds the power to vote 20 percent or more 
21.20 	of the outstanding securities of a business entity; and
21.21 	(ii) that business entity made a contribution to the account in the current or previous 
21.22 	taxable year and received a credit certificate.
21.23 	(c) For the purposes of this subdivision disqualified business means a business entity 
21.24 	that:
21.25 	(1) made a contribution to the account in the current or prior taxable year and received 
21.26 	a credit certificate;
21.27 	(2) has an officer or principal who is an individual who made a contribution to the 
21.28 	account in the current or previous taxable year and received a credit certificate; or
21.29 	(3) meets the following criteria:
22.1 	(i) the business entity is directly owned, controlled, or is subject to the power to vote 20 
22.2 	percent or more of the outstanding securities by an individual or business entity; and
22.3 	(ii) that controlling individual or business entity made a contribution to the account in 
22.4 	the current or previous taxable year and received a credit certificate.
22.5 	(d) The disqualifications in paragraphs (b) and (c) apply if the taxpayer would be 
22.6 	disqualified either individually or in combination with one or more members of the taxpayer's 
22.7 	family, as defined in the Internal Revenue Code, section 267(c)(4). For purposes of this 
22.8 	subdivision, "immediate family" means the taxpayer's spouse, parent or parent's spouse, 
22.9 	sibling or sibling's spouse, or child or child's spouse. For a married couple filing a joint 
22.10 	return, the limitations in this paragraph subdivision apply collectively to the taxpayer and 
22.11 	spouse. For purposes of determining the ownership interest of a taxpayer under paragraph 
22.12 	(a), clause (4), the rules under sections 267(c) and 267(e) of the Internal Revenue Code 
22.13 	apply.
22.14 	(e) Before applying for a grant or loan, all recipients must sign a disclosure that the 
22.15 	disqualifications under this subdivision do not apply. The Minnesota Housing Finance 
22.16 	Agency must prescribe the form of the disclosure. The Minnesota Housing Finance Agency 
22.17 	may rely on the disclosure to determine the eligibility of recipients under paragraph (a).
22.18 	(f) The agency may award grants or loans to a city as defined in section 462A.03, 
22.19 	subdivision 21; a federally recognized American Indian tribe or subdivision located in 
22.20 	Minnesota; a tribal housing corporation; a private developer; a nonprofit organization; a 
22.21 	housing and redevelopment authority under sections 469.001 to 469.047; a public housing 
22.22 	authority or agency authorized by law to exercise any of the powers granted by sections 
22.23 	469.001 to 469.047; or the owner of the housing. The provisions of subdivision 2, and 
22.24 	paragraphs (a) to (e) and (g) of this subdivision, regarding the use of funds and eligible 
22.25 	recipients apply to grants and loans awarded under this paragraph.
22.26 	(g) Except for the set-aside provided in subdivision 2, paragraph (d), Eligible recipients 
22.27 	must use the funds to serve households that meet the income limits as provided in section 
22.28 	462A.33, subdivision 5.

22.29 	Sec. 30. Minnesota Statutes 2022, section 462C.02, subdivision 6, is amended to read:
22.30 		Subd. 6.City. "City" means any statutory or home rule charter city, a county housing 
22.31 	and redevelopment authority created by special law or authorized by its county to exercise 
22.32 	its powers pursuant to section 469.004, or any public body which (a) is the housing and 
22.33 	redevelopment authority in and for a statutory or home rule charter city, the port authority 
23.1 	of a statutory or home rule charter city, or an economic development authority of a city 
23.2 	established under sections 469.090 to 469.108, or a public corporation created pursuant to 
23.3 	section 469.0121, and (b) is authorized by ordinance to exercise, on behalf of a statutory or 
23.4 	home rule charter city, the powers conferred by sections 462C.01 to 462C.10.

23.5 	Sec. 31. Minnesota Statutes 2022, section 469.012, subdivision 2j, is amended to read:
23.6 		Subd. 2j.May be in LLP, LLC, or corporation; bound as if HRA. (a) An authority 
23.7 	may become a member or shareholder in and enter into or form limited partnerships, limited 
23.8 	liability companies, or corporations for the purpose of developing, constructing, rehabilitating, 
23.9 	managing, supporting, or preserving housing projects and housing development projects, 
23.10 	including low-income housing tax credit projects. These limited partnerships, limited liability 
23.11 	companies, or corporations are subject to all of the provisions of sections 469.001 to 469.047
23.12 	and other laws that apply to housing and redevelopment authorities, as if the limited 
23.13 	partnership, limited liability company, or corporation were a housing and redevelopment 
23.14 	authority.
23.15 	(b) An authority may create a public corporation in accordance with section 469.0121 
23.16 	for the purpose of purchasing, owning, and operating real property converted through the 
23.17 	federal Rental Assistance Demonstration program under Public Law 112-55, as amended.

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

23.19 	Sec. 32. [469.0121] PUBLIC CORPORATION; RENTAL ASSISTANCE 
23.20 	DEMONSTRATION PROGRAM.
23.21 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
23.22 	the meanings given.
23.23 	(b) "Authority" has the meaning given under section 469.002, subdivision 2.
23.24 	(c) "Board" means the board of directors of a corporation created under this section.
23.25 	(d) "Corporation" means a public corporation created under this section.
23.26 	(e) "RAD" means the federal Rental Assistance Demonstration program under Public 
23.27 	Law 112-55, as amended.
23.28 		Subd. 2.Public corporation created. An authority may create a public corporation to 
23.29 	purchase, own, and operate real property that has been converted through RAD to preserve 
23.30 	and improve public housing properties. A public corporation created under this section is 
23.31 	also a political subdivision of the state and is limited to the powers in this section.
24.1 		Subd. 3.Corporation powers. (a) The corporation has the following general powers:
24.2 	(1) to have succession until dissolved by law;
24.3 	(2) to sue and be sued in its corporate name;
24.4 	(3) to adopt, alter, and use a corporate seal which shall be judicially noticed;
24.5 	(4) to accept, hold, and administer gifts and bequests of money, securities, or other 
24.6 	personal property of whatsoever character, absolutely or in trust, for the purposes for which 
24.7 	the corporation is created. Unless otherwise restricted by the terms of the gift or bequest, 
24.8 	the corporation is authorized to sell, exchange, or otherwise dispose of and to invest or 
24.9 	reinvest in such investments as it may determine from time to time the money, securities, 
24.10 	or other property given or bequeathed to it. The principal of such corporate funds and the 
24.11 	income therefrom, and all other revenues received by it from any source whatsoever shall 
24.12 	be placed in such depositories as the board of directors shall determine and shall be subject 
24.13 	to expenditure for corporate purposes;
24.14 	(5) to enter into contracts generally and to execute all instruments necessary or appropriate 
24.15 	to carry out its corporate purposes;
24.16 	(6) to appoint and prescribe the duties of officers, agents, and employees as may be 
24.17 	necessary to carry out its work and to compensate them;
24.18 	(7) to purchase all supplies and materials necessary for carrying out its purposes;
24.19 	(8) to accept from the United States or the state of Minnesota, or any of their agencies, 
24.20 	money or other assistance whether by gift, loan, or otherwise to carry out its corporate 
24.21 	purposes, and enter into such contracts with the United States or the state of Minnesota, or 
24.22 	any of the agencies of either, or with any of the political subdivisions of the state, as it may 
24.23 	deem proper and consistent with the purposes of this section;
24.24 	(9) to contract and make cooperative agreements with federal, state, and municipal 
24.25 	departments and agencies and private corporations, associations, and individuals for the use 
24.26 	of the corporation property, including but not limited to rental agreements; and
24.27 	(10) to acquire real or personal property or any interest therein in any manner authorized 
24.28 	under section 469.012, subdivision 1g, including by the exercise of eminent domain.
24.29 	(b) A corporation may acquire properties converted under RAD, subject to restrictions 
24.30 	and conditions compatible with funding acquisitions of and improvements to real property 
24.31 	with state general obligation bond proceeds. The commissioner of management and budget 
24.32 	must determine the necessary restrictions and conditions under this paragraph.
25.1 		Subd. 4.Board of directors. (a) A corporation is governed by a board of directors as 
25.2 	follows:
25.3 	(1) a member of the city council from the city in which the corporation is incorporated; 
25.4 	and
25.5 	(2) a commissioner of the authority that created the corporation.
25.6 	(b) The term of a director is six years. Two members of the initial board of directors 
25.7 	must be appointed for terms of four years, and one for a term of two years.
25.8 	(c) Vacancies on the board must be filled by the authority.
25.9 	(d) Board members must not be compensated for their service as board members other 
25.10 	than to be reimbursed for reasonable expenses incurred in connection with their duties as 
25.11 	board members. Reimbursement shall be reviewed each year by the state auditor.
25.12 	(e) The board must annually elect from among its members a chair and other officers 
25.13 	necessary for the performance of its duties.
25.14 		Subd. 5.Bylaws. The board of directors must adopt bylaws and rules as it deems 
25.15 	necessary for the administration of its functions and the accomplishment of its purpose, 
25.16 	including among other matters the establishment of a business office and the rules, the use 
25.17 	of the project-based rental assistance properties, and the administration of corporation funds.
25.18 		Subd. 6.Place of business. The board must locate and maintain the corporation's place 
25.19 	of business in the city in which the authority that created the corporation is located.
25.20 		Subd. 7.Open meetings; data practices. Meetings of the board are subject to chapter 
25.21 	13D and meetings of the board conducted by interactive technology are subject to section 
25.22 	13D.02. The board is subject to chapter 13, the Minnesota Government Data Practices Act, 
25.23 	and shall protect from unlawful disclosure data classified as not public.
25.24 		Subd. 8.Compliance. The corporation must comply with all federal, state, and local 
25.25 	laws, rules, ordinances, and other regulations required to own and operate properties as 
25.26 	project-based rental assistance properties.
25.27 		Subd. 9.Dissolution. Upon dissolution of the corporation for any reason, its wholly 
25.28 	owned assets become property of the authority that created the corporation.

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

26.1 	Sec. 33. Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 1, is amended 
26.2 	to read:
26.3 		Subdivision 1.Purpose. The purpose of this section is to help metropolitan local 
26.4 	governments to develop and preserve affordable housing and supportive services for residents
26.5 	within their jurisdictions in order to keep families from losing housing and to help those 
26.6 	experiencing homelessness find housing.

26.7 	Sec. 34. Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 2, is amended 
26.8 	to read:
26.9 		Subd. 2.Definitions. (a) For the purposes of this section, the following terms have the 
26.10 	meanings given:.
26.11 	(1) (b) "City distribution factor" means the number of households in a tier I city that are 
26.12 	cost-burdened divided by the total number of households that are cost-burdened in tier I 
26.13 	cities. The number of cost-burdened households shall be determined using the most recent 
26.14 	estimates or experimental estimates provided by the American Community Survey of the 
26.15 	United States Census Bureau as of May 1 of the aid calculation year;.
26.16 	(2) (c) "Cost-burdened household" means a household in which gross rent is 30 percent 
26.17 	or more of household income or in which homeownership costs are 30 percent or more of 
26.18 	household income;.
26.19 	(3) (d) "County distribution factor" means the number of households in a county that 
26.20 	are cost-burdened divided by the total number of households in metropolitan counties that 
26.21 	are cost-burdened. The number of cost-burdened households shall be determined using the 
26.22 	most recent estimates or experimental estimates provided by the American Community 
26.23 	Survey of the United States Census Bureau as of May 1 of the aid calculation year;.
26.24 	(e) "Locally funded housing expenditures" means expenditures of the aid recipient, 
26.25 	including expenditures by a public corporation or legal entity created by the aid recipient, 
26.26 	that are:
26.27 	(1) funded from the recipient's general fund, a property tax levy of the recipient or its 
26.28 	housing and redevelopment authority, or unrestricted money available to the recipient, but 
26.29 	not including tax increments; and
26.30 	(2) expended on one of the following qualifying activities:
26.31 	(i) financial assistance to residents in arrears on rent, mortgage, utilities, or property tax 
26.32 	payments;
27.1 	(ii) support services, case management services, and legal services for residents in arrears 
27.2 	on rent, mortgage, utilities, or property tax payments;
27.3 	(iii) down payment assistance or homeownership education, counseling, and training;
27.4 	(iv) acquisition, construction, rehabilitation, adaptive reuse, improvement, financing, 
27.5 	and infrastructure of residential dwellings;
27.6 	(v) costs of operating emergency shelter, transitional housing, supportive housing, or 
27.7 	publicly owned housing, including costs of providing case management services and support 
27.8 	services; and
27.9 	(vi) rental assistance.
27.10 	(4) (f) "Metropolitan area" has the meaning given in section 473.121, subdivision 2;
27.11 	(5) (g) "Metropolitan county" has the meaning given in section 473.121, subdivision 4;
27.12 	(6) (h) "Population" has the meaning given in section 477A.011, subdivision 3; and
27.13 	(7) (i) "Tier I city" means a statutory or home rule charter city that is a city of the first, 
27.14 	second, or third class and is located in a metropolitan county.

27.15 	Sec. 35. Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 4, is amended 
27.16 	to read:
27.17 		Subd. 4.Qualifying projects. (a) Qualifying projects shall include:
27.18 	(1) emergency rental assistance for households earning less than 80 percent of area 
27.19 	median income as determined by the United States Department of Housing and Urban 
27.20 	Development;
27.21 	(2) financial support to nonprofit affordable housing providers in their mission to provide 
27.22 	safe, dignified, affordable and supportive housing; and
27.23 	(3) projects designed for the purpose of construction, acquisition, rehabilitation, 
27.24 	demolition or removal of existing structures, construction financing, permanent financing, 
27.25 	interest rate reduction, refinancing, and gap financing of housing to provide affordable 
27.26 	housing to households that have incomes which do not exceed, for homeownership projects, 
27.27 	115 percent of the greater of state or area median income as determined by the United States 
27.28 	Department of Housing and Urban Development, and for rental housing projects, 80 percent 
27.29 	of the greater of state or area median income as determined by the United States Department 
27.30 	of Housing and Urban Development, except that the housing developed or rehabilitated 
27.31 	with funds under this section must be affordable to the local work force;
28.1 	(4) financing the operations and management of financially distressed residential 
28.2 	properties;
28.3 	(5) funding of supportive services or staff of supportive services providers for supportive 
28.4 	housing as defined by section 462A.37, subdivision 1. Financial support to nonprofit housing 
28.5 	providers to finance supportive housing operations may be awarded as a capitalized reserve 
28.6 	or as an award of ongoing funding; and
28.7 	(6) costs of operating emergency shelter facilities, including the costs of providing 
28.8 	services.
28.9 	Projects shall be prioritized (b) Recipients must prioritize projects that provide affordable 
28.10 	housing to households that have incomes which do not exceed, for homeownership projects, 
28.11 	80 percent of the greater of state or area median income as determined by the United States 
28.12 	Department of Housing and Urban Development, and for rental housing projects, 50 percent 
28.13 	of the greater of state or area median income as determined by the United States Department 
28.14 	of Housing and Urban Development. Priority may be given to projects that: reduce disparities 
28.15 	in home ownership; reduce housing cost burden, housing instability, or homelessness; 
28.16 	improve the habitability of homes; create accessible housing; or create more energy- or 
28.17 	water-efficient homes.
28.18 	(b) (c) Gap financing is either:
28.19 	(1) the difference between the costs of the property, including acquisition, demolition, 
28.20 	rehabilitation, and construction, and the market value of the property upon sale; or
28.21 	(2) the difference between the cost of the property and the amount the targeted household 
28.22 	can afford for housing, based on industry standards and practices.
28.23 	(c) (d) If aid under this section is used for demolition or removal of existing structures, 
28.24 	the cleared land must be used for the construction of housing to be owned or rented by 
28.25 	persons who meet the income limits of paragraph (a).
28.26 	(d) (e) If an aid recipient uses the aid on new construction or substantial rehabilitation 
28.27 	of a building containing more than four units, the loan recipient must construct, convert, or 
28.28 	otherwise adapt the building to include:
28.29 	(1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
28.30 	accessible units, as defined by section 1002 of the current State Building Code Accessibility 
28.31 	Provisions for Dwelling Units in Minnesota, and include at least one roll-in shower; and
28.32 	(2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
28.33 	sensory-accessible units that include:
29.1 	(A) soundproofing between shared walls for first and second floor units;
29.2 	(B) no florescent lighting in units and common areas;
29.3 	(C) low-fume paint;
29.4 	(D) low-chemical carpet; and
29.5 	(E) low-chemical carpet glue in units and common areas.
29.6 	Nothing in this paragraph relieves a project funded by this section from meeting other 
29.7 	applicable accessibility requirements.

29.8 	Sec. 36. Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 5, is amended 
29.9 	to read:
29.10 		Subd. 5.Use of proceeds. (a) Any funds distributed under this section must be spent on 
29.11 	a qualifying project. Funds are considered spent on a qualifying project if:
29.12 	(1) a tier I city or county demonstrates to the Minnesota Housing Finance Agency that 
29.13 	the city or county cannot expend funds on a qualifying project by the deadline imposed by 
29.14 	paragraph (b) due to factors outside the control of the city or county; and
29.15 	(2) the funds are transferred to a local housing trust fund.
29.16 	Funds transferred to a local housing trust fund under this paragraph must be spent on a 
29.17 	project or household that meets the affordability requirements of subdivision 4, paragraph 
29.18 	(a).
29.19 	(b) Funds must be spent by December 31 in the third year following the year after the 
29.20 	aid was received. The requirements of this paragraph are satisfied if funds are:
29.21 	(1) committed to a qualifying project by December 31 in the third year following the 
29.22 	year after the aid was received; and
29.23 	(2) expended by December 31 in the fourth year following the year after the aid was 
29.24 	received.
29.25 	(c) An aid recipient may not use aid money to reimburse itself for prior expenditures.

29.26 	Sec. 37. Minnesota Statutes 2023 Supplement, section 477A.35, is amended by adding a 
29.27 	subdivision to read:
29.28 		Subd. 5a.Conditions for receipt. (a) As a condition of receiving aid under this section, 
29.29 	a recipient must commit to using money to supplement, not supplant, existing locally funded 
30.1 	housing expenditures, so that they are using the money to create new, or to expand existing, 
30.2 	housing programs.
30.3 	(b) In the annual report required under subdivision 6, a recipient must certify its 
30.4 	compliance with this subdivision, including an accounting of locally funded housing 
30.5 	expenditures in the prior fiscal year. In a tier I city's or county's first report to the Minnesota 
30.6 	Housing Finance Agency, it must document its locally funded housing expenditures in the 
30.7 	two prior fiscal years. If a recipient reduces one of its locally funded housing expenditures, 
30.8 	the recipient must detail the expenditure, the amount of the reduction, and the reason for 
30.9 	the reduction. The certification required under this paragraph must be made available publicly 
30.10 	on the website of the recipient.

30.11 	Sec. 38. Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 6, is amended 
30.12 	to read:
30.13 		Subd. 6.Administration. (a) The commissioner of revenue must compute the amount 
30.14 	of aid payable to each tier I city and county under this section. By August 1 of each year, 
30.15 	the commissioner must certify the distribution factors of each tier I city and county to be 
30.16 	used in the following year. The commissioner must pay local affordable housing aid annually 
30.17 	at the times provided in section 477A.015, distributing the amounts available on the 
30.18 	immediately preceding June 1 under the accounts established in section 477A.37, subdivisions 
30.19 	2 and 3.
30.20 	(b) Beginning in 2025, tier I cities and counties shall submit a report annually, no later 
30.21 	than December 1 of each year, to the Minnesota Housing Finance Agency. The report must 
30.22 	include documentation of the location of any unspent funds distributed under this section 
30.23 	and of qualifying projects completed or planned with funds under this section. If a tier I 
30.24 	city or county fails to submit a report, if a tier I city or county fails to spend funds within 
30.25 	the timeline imposed under subdivision 5, paragraph (b), or if a tier I city or county uses 
30.26 	funds for a project that does not qualify under this section, or if a tier I city or county fails 
30.27 	to meet its requirements of subdivision 5a, the Minnesota Housing Finance Agency shall 
30.28 	notify the Department of Revenue and the cities and counties that must repay funds under 
30.29 	paragraph (c) by February 15 of the following year.
30.30 	(c) By May 15, after receiving notice from the Minnesota Housing Finance Agency, a 
30.31 	tier I city or county must pay to the Minnesota Housing Finance Agency funds the city or 
30.32 	county received under this section if the city or county:
30.33 	(1) fails to spend the funds within the time allowed under subdivision 5, paragraph (b);
31.1 	(2) spends the funds on anything other than a qualifying project; or
31.2 	(3) fails to submit a report documenting use of the funds.; or
31.3 	(4) fails to meet the requirements of subdivision 5a.
31.4 	(d) The commissioner of revenue must stop distributing funds to a tier I city or county 
31.5 	that requests in writing that the commissioner stop payment or that, in three consecutive 
31.6 	years, the Minnesota Housing Finance Agency has reported, pursuant to paragraph (b), to 
31.7 	have failed to use funds, misused funds, or failed to report on its use of funds.
31.8 	(e) The commissioner may resume distributing funds to a tier I city or county to which 
31.9 	the commissioner has stopped payments in the year following the August 1 after the 
31.10 	Minnesota Housing Finance Agency certifies that the city or county has submitted 
31.11 	documentation of plans for a qualifying project. The commissioner may resume distributing 
31.12 	funds to a tier I city or county to which the commissioner has stopped payments at the 
31.13 	request of the city or county in the year following the August 1 after the Minnesota Housing 
31.14 	Finance Agency certifies that the city or county has submitted documentation of plans for 
31.15 	a qualifying project.
31.16 	(f) By June 1, any funds paid to the Minnesota Housing Finance Agency under paragraph 
31.17 	(c) must be deposited in the housing development fund. Funds deposited under this paragraph 
31.18 	are appropriated to the commissioner of the Minnesota Housing Finance Agency for use 
31.19 	on the family homeless prevention and assistance program under section 462A.204, the 
31.20 	economic development and housing challenge program under section 462A.33, and the 
31.21 	workforce and affordable homeownership development program under section 462A.38.

31.22 	Sec. 39. Laws 2023, chapter 37, article 1, section 2, subdivision 2, is amended to read:

31.23	Subd. 2.Challenge Program
 		60,425,000
		60,425,000
	
31.24 	(a) This appropriation is for the economic 
31.25 	development and housing challenge program 
31.26 	under Minnesota Statutes, sections 462A.33
31.27 	and 462A.07, subdivision 14.
31.28 	(b) Of this amount, $6,425,000 each year shall 
31.29 	be made available during the first 11 months 
31.30 	of the fiscal year exclusively for housing 
31.31 	projects for American Indians. Any funds not 
31.32 	committed to housing projects for American 
31.33 	Indians within the annual consolidated request 
32.1 	for funding processes may be available for 
32.2 	any eligible activity under Minnesota Statutes, 
32.3 	sections 462A.33 and 462A.07, subdivision 
32.4 	14.
32.5 	(c) Of the amount in the first year, $5,000,000 
32.6 	is for a grant to Urban Homeworks to expand 
32.7 	initiatives pertaining to deeply affordable 
32.8 	homeownership in Minneapolis neighborhoods 
32.9 	with over 40 percent of residents identifying 
32.10 	as Black, Indigenous, or People of Color and 
32.11 	at least 40 percent of residents making less 
32.12 	than 50 percent of the area median income. 
32.13 	The grant is to be used for acquisition, 
32.14 	rehabilitation, gap financing as defined in 
32.15 	section 462A.33, subdivision 1, and 
32.16 	construction of homes to be sold to households 
32.17 	with incomes of 50 to at or below 60 percent 
32.18 	of the area median income. This is a onetime 
32.19 	appropriation, and is available until June 30, 
32.20 	2027. By December 15 each year until 2027, 
32.21 	Urban Homeworks must submit a report to 
32.22 	the chairs and ranking minority members of 
32.23 	the legislative committees having jurisdiction 
32.24 	over housing finance and policy. The report 
32.25 	must include the amount used for (1) 
32.26 	acquisition, (2) rehabilitation, and (3) 
32.27 	construction of housing units, along with the 
32.28 	number of housing units acquired, 
32.29 	rehabilitated, or constructed, and the amount 
32.30 	of the appropriation that has been spent. If any 
32.31 	home was sold or transferred within the year 
32.32 	covered by the report, Urban Homeworks must 
32.33 	include the price at which the home was sold, 
32.34 	as well as how much was spent to complete 
32.35 	the project before sale.
33.1 	(d) Of the amount in the first year, $2,000,000 
33.2 	is for a grant to Rondo Community Land 
33.3 	Trust. This is a onetime appropriation.
33.4 	(e) The base for this program in fiscal year 
33.5 	2026 and beyond is $12,925,000.

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

33.7 	Sec. 40. Laws 2023, chapter 37, article 1, section 2, subdivision 32, is amended to read:

33.8	Subd. 32.Northland Foundation
 		1,000,000
		-0-
	
33.9 	This appropriation is for a grant to Northland 
33.10 	Foundation for use on expenditures authorized 
33.11 	under Minnesota Statutes, section 462C.16, 
33.12 	subdivision 3, to assist and support 
33.13 	communities in providing housing locally, and 
33.14 	on for assisting local governments to establish 
33.15 	local or regional housing trust funds. 
33.16 	Northland Foundation may award grants and 
33.17 	loans to other entities to expend on authorized 
33.18 	expenditures under this section. This 
33.19 	appropriation is onetime and available until 
33.20 	June 30, 2025.

33.21 	Sec. 41. Laws 2023, chapter 37, article 2, section 12, subdivision 2, is amended to read:
33.22 		Subd. 2.Eligible homebuyer. For the purposes of this section, an "eligible homebuyer" 
33.23 	means an individual:
33.24 	(1) whose income is at or below 130 percent of area median income;
33.25 	(2) who resides in a census tract where at least 60 percent of occupied housing units are 
33.26 	renter-occupied, based on the most recent estimates or experimental estimates provided by 
33.27 	the American Community Survey of the United States Census Bureau;
33.28 	(3) (2) who is financing the purchase of an eligible property with an interest-free, 
33.29 	fee-based mortgage; and
33.30 	(4) (3) who is a first-time homebuyer as defined by Code of Federal Regulations, title 
33.31 	24, section 92.2.

34.1 	Sec. 42. TASK FORCE ON LONG-TERM SUSTAINABILITY OF AFFORDABLE 
34.2 	HOUSING.
 34.3 		Subdivision 1.Establishment. A task force is established to study the financial health 
34.4 	and stability of affordable housing providers and to provide recommendations to the 
34.5 	Minnesota legislature to promote long-term sustainability of affordable housing providers, 
34.6 	prevent loss of affordable units, and promote housing security for renters.
34.7 		Subd. 2.Duties. (a) The task force must assess underlying financial challenges for 
34.8 	affordable housing providers in their pursuit of developing and preserving safe, affordable, 
34.9 	and dignified housing, including examining:
34.10 	(1) factors that are leading to increasing costs, including but not limited to insurance 
34.11 	rates, security costs, and rehabilitation needs;
34.12 	(2) factors that are leading to declining revenues for affordable housing providers, 
34.13 	including but not limited to loss of rent and vacancy issues;
34.14 	(3) the significant financial needs across the entire sector of affordable housing providers; 
34.15 	and
34.16 	(4) the potential impact of loss of housing units under current conditions.
34.17 	(b) The task force must evaluate the current financing and administrative tools that are 
34.18 	being deployed to support housing providers and their effectiveness, including examining:
34.19 	(1) current funding needs, financing programs, and the availability of funding to assess 
34.20 	the level of funding as it relates to overall needs;
34.21 	(2) administrative tools utilized by the Minnesota Housing Finance Agency to support 
34.22 	affordable housing providers; and
34.23 	(3) the effectiveness of current funding programs and tools.
34.24 	(c) The task force must evaluate potential solutions to address identified financial 
34.25 	challenges for affordable housing providers, including:
34.26 	(1) additional funding for existing programs and tools;
34.27 	(2) new financial tools, including new uses of housing infrastructure bonds;
34.28 	(3) mechanisms to fund supportive services in the development process for new affordable 
34.29 	housing projects;
34.30 	(4) underwriting practices at the Minnesota Housing Finance Agency; and
35.1 	(5) recommendations for changes to financial or management practices for affordable 
35.2 	housing providers.
35.3 		Subd. 3.Meetings and report. The Minnesota Housing Finance Agency shall convene 
35.4 	the first meeting of the task force no later than August 31, 2024, and shall provide accessible 
35.5 	physical or virtual meeting space as necessary for the task force to conduct its work. The 
35.6 	task force must submit final recommendations to the house of representatives and senate 
35.7 	housing committees and for the commissioner of the Minnesota Housing Finance Agency 
35.8 	no later than February 1, 2025.
35.9 		Subd. 4.Membership. The task force shall consist of 13 members representing a cross 
35.10 	section of the affordable housing industry and relevant agency staff. The chair of the house 
35.11 	of representatives committee with jurisdiction over housing finance shall appoint four 
35.12 	members. The chair of the senate committee with jurisdiction over housing finance shall 
35.13 	appoint four members. The commissioner of the Minnesota Housing Finance Agency shall 
35.14 	appoint five members. Members must be appointed no later than July 1, 2024.
35.15 		Subd. 5.Expiration. The task force expires upon submission of the final 
35.16 	recommendations required under subdivision 4.

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

35.18 	Sec. 43. DIRECTION TO COMMISSIONERS OF HUMAN SERVICES AND THE 
35.19 	MINNESOTA HOUSING FINANCE AGENCY; EMERGENCY ASSISTANCE 
35.20 	PROGRAM MODIFICATIONS.
 35.21 	(a) The commissioner of the Minnesota Housing Finance Agency, in consultation with 
35.22 	the commissioner of human services, shall develop program recommendations for emergency 
35.23 	rental assistance that have the flexibility to provide relief for crises within a time frame that 
35.24 	corresponds to the emergency and that are simple enough for applicants to understand across 
35.25 	all emergency rental assistance programs. In the development of these recommendations, 
35.26 	the commissioners must:
35.27 	(1) recognize differences between administrative and legislative authority and propose 
35.28 	legislative changes to the definition of emergency general assistance;
35.29 	(2) adopt policies and practices that prioritize easy-to-understand eligibility criteria and 
35.30 	definitions that prioritize accessible, culturally responsive, and trauma-informed approaches 
35.31 	when assisting persons through a crisis; and
35.32 	(3) develop guidance to emergency rental assistance program administrators that 
35.33 	encourage the program administrators to be flexible with the required forms of documentation 
36.1 	for the program and to avoid establishing documentation requirements that are likely to be 
36.2 	barriers to participation in emergency rental assistance for eligible households.
36.3 	(b) For the purposes of this section, the following terms have the meanings given:
36.4 	(1) "culturally responsive" means agencies, programs, and providers of services respond 
36.5 	respectfully and effectively to people of all cultures, languages, classes, races, ethnic 
36.6 	backgrounds, disabilities, religions, genders, sexual orientations, and other identities in a 
36.7 	manner that recognizes, values, and affirms differences and eliminates barriers to access; 
36.8 	and
36.9 	(2) "trauma-informed" means to recognize that many people have experienced trauma 
36.10 	in their lifetime and that programs must be designed to respond to people with respect and 
36.11 	accommodate the needs of people who have or are currently experiencing trauma.

36.12 	Sec. 44. E-SIGNATURE OPTIONS FOR RENTAL ASSISTANCE.
 36.13 	The commissioner of the Minnesota Housing Finance Agency and the commissioner of 
36.14 	human services are encouraged to develop uniform e-signature options to be used in 
36.15 	applications for emergency general assistance, emergency assistance, and family homeless 
36.16 	prevention and assistance program assistance.

36.17 	Sec. 45. LANGUAGE ACCESS IN APPLICATIONS FOR RENTAL ASSISTANCE.
 36.18 	The commissioner of the Minnesota Housing Finance Agency and the commissioner of 
36.19 	human services shall research state and federal laws and regulations to determine language 
36.20 	access standards applying to the organizations' emergency general assistance, emergency 
36.21 	assistance, and family homelessness prevention and assistance programs and shall ensure 
36.22 	compliance with all applicable language access requirements. The commissioners are 
36.23 	encouraged to identify specific languages into which program materials could be translated 
36.24 	to improve access to emergency general assistance, emergency assistance, and family 
36.25 	homeless prevention and assistance program assistance and shall translate the materials into 
36.26 	the identified languages. The commissioners are encouraged to develop and implement a 
36.27 	plan to translate any website applications for emergency general assistance, emergency 
36.28 	assistance, and family homeless prevention and assistance program assistance into 
36.29 	multilingual website applications.

36.30 	Sec. 46. VERIFICATION PROCEDURES FOR RENTAL ASSISTANCE.
 36.31 	(a) The commissioner of the Minnesota Housing Finance Agency, in consultation with 
36.32 	the commissioner of human services, is encouraged to consult with local officials to develop 
37.1 	recommendations aimed at simplifying the process of verifying the information in 
37.2 	applications for emergency general assistance, emergency assistance, and family homeless 
37.3 	prevention and assistance program assistance. In developing recommendations, the 
37.4 	commissioners must consider:
37.5 	(1) allowing self-attestation of emergencies, assets, and income;
37.6 	(2) allowing verbal authorization by applicants to allow emergency rental assistance 
37.7 	administrators to communicate with landlords and utility providers regarding applications 
37.8 	for assistance; and
37.9 	(3) allowing landlords to apply for emergency rental assistance on tenants' behalf.
37.10 	(b) The commissioners are encouraged to:
37.11 	(1) prepare recommendations by January 1, 2025; and
37.12 	(2) report those recommendations to the chairs and ranking minority members of the 
37.13 	legislative committees having jurisdiction over housing.

37.14 	Sec. 47. HOUSING AFFORDABILITY PRESERVATION INVESTMENT.
 37.15 		Subdivision 1.Establishment. The commissioner of the Minnesota Housing Finance 
37.16 	Agency must establish and administer a grant program to support recapitalization of distressed 
37.17 	buildings.
37.18 		Subd. 2.Definitions. For purposes of this section:
37.19 	(1) "distressed building" means an existing rental housing building in which the units 
37.20 	are restricted to households at or below 60 percent of the area median income, and that:
37.21 	(i) is in foreclosure proceedings;
37.22 	(ii) has two or more years of negative net operating income;
37.23 	(iii) has two or more years with a debt service coverage ratio of less than one; or
37.24 	(iv) has necessary costs of repair, replacement, or maintenance that exceed the project 
37.25 	reserves available for those purposes; and
37.26 	(2) "recapitalization" means financing for the physical and financial needs of a distressed 
37.27 	building, including restructuring and forgiveness of amortizing and deferred debt, principal 
37.28 	and interest paydown, interest rate write-down, deferral of debt payments, mortgage payment 
37.29 	forbearance, deferred maintenance, security services, property insurance, capital 
37.30 	improvements, funding of reserves for supportive services, and property operations.
38.1 		Subd. 3.Grant program. The commissioner must use a request for proposal process 
38.2 	to consider funding requests and award grants to finance recapitalization of distressed 
38.3 	buildings. In awarding grants, the commissioner must give priority to distressed buildings 
38.4 	most at risk of losing affordable housing.
38.5 		Subd. 4.Report. By February 1, 2025, and November 30, 2025, the commissioner shall 
38.6 	submit a report to the chairs and ranking minority members of the legislative committees 
38.7 	having jurisdiction over housing and homelessness. The report must detail the number of 
38.8 	applications received, the amount of funding requested, the grants awarded, and the number 
38.9 	of affordable housing units preserved through awards under this section.

38.10 	Sec. 48. REVISOR INSTRUCTION.
 38.11 	(a) If H.F. 3800 or another substantively similar bill that establishes a new cooperative 
38.12 	chapter coded as Minnesota Statutes, chapter 308C, is enacted during the 2024 legislative 
38.13 	session, the revisor of statutes must add "308C" to the list of chapters referenced in Minnesota 
38.14 	Statutes, section 462A.37, subdivision 2, paragraph (a), clause (10), as amended in this act.
38.15 	(b) The revisor of statutes shall renumber Minnesota Statutes, section 462A.37, 
38.16 	subdivision 2i, as Minnesota Statutes, section 462A.37, subdivision 3a. The revisor shall 
38.17 	also make necessary cross-reference changes in Minnesota Statutes.

38.18 	ARTICLE 3
38.19 	DISCRIMINATION; CIC; WORKING GROUP

38.20 	Section 1. [504B.505] DISCRIMINATION; HOUSING ASSISTANCE.
38.21 	(a) A landlord must not discriminate against a tenant based on the tenant's use of federal, 
38.22 	state, or local government rental assistance; a housing choice voucher program; or another 
38.23 	form of public assistance that helps a tenant pay rent; or refuse to rent to a tenant because 
38.24 	the landlord may be responsible for meeting the terms and conditions of a public assistance 
38.25 	program. A landlord must not deny a tenant or prospective tenant a viewing or application 
38.26 	for a rental unit, deny them the opportunity to rent a unit, or discriminate against a tenant 
38.27 	or prospective tenant who uses rental assistance or a housing choice voucher. A landlord 
38.28 	cannot advertise that they will not rent to a tenant who uses rental assistance or a housing 
38.29 	choice voucher program.
38.30 	(b) A violation of this section is an unfair discriminatory practice under section 363A.09, 
38.31 	and an individual has all the rights and remedies available under chapter 363A.

39.1 	Sec. 2. Laws 2023, chapter 52, article 19, section 120, is amended to read:
39.2 	Sec. 120. EFFECTIVE DATE.
 39.3 	Sections 117 to and 119 are effective January 1, 2024. Section 118 is effective January 
39.4 	1, 2024, and applies to cases filed before, on, or after that date.

39.5 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2024.

39.6 	Sec. 3. WORKING GROUP ON COMMON INTEREST COMMUNITIES AND 
39.7 	HOMEOWNERS ASSOCIATIONS.
 39.8 		Subdivision 1.Creation; duties. (a) A working group is created to study the prevalence 
39.9 	and impact of common interest communities (CICs) and homeowners associations (HOAs) 
39.10 	in Minnesota and how the existing laws regulating CICs and HOAs help homeowners and 
39.11 	tenants access safe and affordable housing. The working group shall study:
39.12 	(1) how many CICs and HOAs exist, how many people may reside in those housing 
39.13 	units, and where they are located in the state;
39.14 	(2) the governing documents commonly used by CICs and HOAs and whether the 
39.15 	governing documents or common practices create barriers for participation by homeowners 
39.16 	in the board of directors for CICs or HOAs;
39.17 	(3) the fees and costs commonly associated with CICs and HOAs and how those fees 
39.18 	have increased, including the cost of outside management, accounting, and attorney fees 
39.19 	that are assessed to owners and residents;
39.20 	(4) whether there should be uniform, statutory standards regarding fees, fines, and costs 
39.21 	assessed to residents;
39.22 	(5) how the organization and management of CICs and HOAs, including boards and 
39.23 	management companies, impact the affordability of CICs and HOAs;
39.24 	(6) the impact of CICs and HOAs on the housing market and housing costs;
39.25 	(7) the racial disparity in homeownership as it relates to CICs and HOAs;
39.26 	(8) the accessibility and affordability of CICs and HOAs for Minnesotans with disabilities;
39.27 	(9) how other states regulate CICs and HOAs and best practices related to board 
39.28 	transparency, dispute resolution, and foreclosures; and
39.29 	(10) how the current laws governing CICs and HOAs may be consolidated and reformed 
39.30 	for clarity and to improve the experience of homeowners and residents in CICs and HOAs.
40.1 	(b) The focus and duties of the working group shall be to recommend legislative reforms 
40.2 	or other methods to regulate CICs and HOAs, including the consolidation or recodification 
40.3 	of existing chapters regulating CICs and HOAs.
40.4 		Subd. 2.Membership. The working group shall consist of the following:
40.5 	(1) two members of the house of representatives, one appointed by the speaker of the 
40.6 	house and one appointed by the minority leader;
40.7 	(2) two members of the senate, one appointed by the senate majority leader and one 
40.8 	appointed by the senate minority leader;
40.9 	(3) one member from the Minnesota Homeownership Center;
40.10 	(4) one member from the Community Associations Institute;
40.11 	(5) one member from a business association that supports, educates, or provides services 
40.12 	to CICs and HOAs in Minnesota designated by the commissioner of commerce;
40.13 	(6) one member from a legal aid association familiar with housing laws and representing 
40.14 	low-income clients;
40.15 	(7) one member from the Minnesota Association of Realtors;
40.16 	(8) one member who is an attorney who regularly works advising homeowners or 
40.17 	residents in CICs and HOAs and is familiar with the state foreclosure laws designed by the 
40.18 	State Bar Association;
40.19 	(9) one member who is an attorney who regularly works advising CIC and HOA boards 
40.20 	designated by the State Bar Association;
40.21 	(10) one member from a metropolitan area government who is familiar with issues 
40.22 	homeowners and tenants face while living in CICs and HOAs in the metropolitan area;
40.23 	(11) the commissioner of the Minnesota Housing Finance Agency or the commissioner's 
40.24 	designee;
40.25 	(12) one member from the attorney general's office designated by the attorney general;
40.26 	(13) two members who are currently, or have within the last five years, served on a CIC 
40.27 	or HOA board and have knowledge about the management of CIC and HOA boards; and
40.28 	(14) four members who are current or recent owners of a residence that is part of a CIC 
40.29 	or HOA.
40.30 		Subd. 3.Facilitation; organization; meetings. (a) The Management Analysis Division 
40.31 	of Minnesota Management and Budget shall facilitate the working group, provide 
41.1 	administrative assistance, and convene the first meeting by July 15, 2024. Members of the 
41.2 	working group may receive compensation and reimbursement for expenses as authorized 
41.3 	by Minnesota Statutes, section 15.059, subdivision 3.
41.4 	(b) The working group must meet at regular intervals as often as necessary to accomplish 
41.5 	the goals enumerated under subdivision 1. Meetings of the working group are subject to the 
41.6 	Minnesota Open Meeting Law under Minnesota Statutes, chapter 13D.
41.7 		Subd. 4.External consultation. The working group shall consult with other individuals 
41.8 	and organizations that have expertise and experience that may assist the working group in 
41.9 	fulfilling its responsibilities, including entities engaging in additional external stakeholder 
41.10 	input from those with experience living in CICs and HOAs as well as working with the 
41.11 	board of directors for CICs and HOAs.
41.12 		Subd. 5.Report required. The working group shall submit a final report by February 
41.13 	1, 2025, to the chairs and ranking minority members of the legislative committees with 
41.14 	jurisdiction over housing finance and policy, commerce, and real property. The report shall 
41.15 	include recommendations and draft legislation based on the duties and focus for the working 
41.16 	group provided in subdivision 1.
41.17 		Subd. 6.Expiration. The working group expires upon submission of the final report in 
41.18 	subdivision 5, or February 28, 2025, whichever is later.

41.19 	EFFECTIVE DATE. This section is effective the day following final enactment and 
41.20 	expires March 1, 2025.