1.1 	A bill for an act
1.2 	relating to state government; appropriating money to the Minnesota Housing 
1.3 	Finance Agency; making policy, finance, and technical changes to housing 
1.4 	provisions; authorizing housing infrastructure bonds; requiring reports;amending 
1.5 	Minnesota Statutes 2022, sections 462A.02, subdivision 10; 462A.05, subdivisions 
1.6 	14a, 14b, 15, 15b, 21, 23; 462A.07, by adding a subdivision; 462A.21, subdivision 
1.7 	7; 462A.35, subdivision 2; 462A.37, by adding a subdivision; 462A.40, subdivisions 
1.8 	2, 3; 469.012, by adding a subdivision; Minnesota Statutes 2023 Supplement, 
1.9 	sections 462A.05, subdivisions 14, 45; 462A.22, subdivision 1; 462A.37, 
1.10 	subdivisions 2, 5; 462A.39, subdivision 2; 462A.395; Laws 2023, chapter 37, 
1.11 	article 1, section 2, subdivisions 2, 17, 25, 29, 32; article 2, section 12, subdivision 
1.12 	2; proposing coding for new law in Minnesota Statutes, chapter 462A; repealing 
1.13 	Laws 2023, chapter 37, article 2, section 13.
1.14 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.15 	ARTICLE 1
1.16 	HOUSING APPROPRIATIONS

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

1.25				APPROPRIATIONS
	
1.26				Available for the Year
	
1.27				Ending June 30
	
1.28					2024
		2025

2.1	Sec. 2. HOUSING FINANCE AGENCY

2.2	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	63,025,000
	
2.3 	(a) The amounts that may be spent for each 
2.4 	purpose are specified in the following 
2.5 	subdivisions.
2.6 	(b) Unless otherwise specified, this 
2.7 	appropriation is for transfer to the housing 
2.8 	development fund for the programs specified 
2.9 	in this section.

2.10	Subd. 2.Family Homeless Prevention
 		-0-
		8,804,000
	
2.11 	This appropriation is for the family homeless 
2.12 	prevention and assistance program under 
2.13 	Minnesota Statutes, section 462A.204. 
2.14 	Notwithstanding procurement provisions 
2.15 	outlined in Minnesota Statutes, section 
2.16 	16C.06, subdivisions 1, 2, and 6, the agency 
2.17 	may award grants to existing program 
2.18 	grantees. This is a onetime appropriation.

2.19	Subd. 3.Minnesota Homeless Study
 		-0-
		500,000
	
2.20 	This appropriation is for a grant to the 
2.21 	Amherst H. Wilder Foundation for the 
2.22 	Minnesota homeless study. Notwithstanding 
2.23 	Minnesota Statutes, section 16B.98, 
2.24 	subdivision 14, the commissioner may use up 
2.25 	to one percent of this appropriation for 
2.26 	administrative costs. This is a onetime 
2.27 	appropriation.

2.28
2.29	Subd. 4.Wilder Park Association Capital Repair 
Project
 		-0-
		3,250,000
	
2.30 	This appropriation is for a grant to the Wilder 
2.31 	Park Association to assist with the cost of a 
2.32 	major capital repair project for the 
2.33 	rehabilitation of portions of the 
2.34 	owner-occupied senior high-rise facility. 
3.1 	Notwithstanding Minnesota Statutes, section 
3.2 	16B.98, subdivision 14, the commissioner may 
3.3 	use up to one percent of this appropriation for 
3.4 	administrative costs. This is a onetime 
3.5 	appropriation.

3.6
3.7	Subd. 5.Housing Affordability Preservation 
Investment
 		-0-
		50,000,000
	
3.8 	This appropriation is for the housing 
3.9 	affordability preservation investment program 
3.10 	under article 2, section 25. This is a onetime 
3.11 	appropriation.

3.12	Subd. 6.Expediting Rental Assistance
 		-0-
		471,000
	
3.13 	This appropriation is for the agency's work 
3.14 	under article 3 of this act. This is a onetime 
3.15 	appropriation.

3.16
3.17	Sec. 3. DEPARTMENT OF LABOR AND 
INDUSTRY
 	$
	-0-
	$
	225,000
	
3.18 	This appropriation is for the single-exit 
3.19 	stairway apartment building report under 
3.20 	article 2, section 27. This is a onetime 
3.21 	appropriation.

3.22 	Sec. 4. Laws 2023, chapter 37, article 1, section 2, subdivision 17, is amended to read:

3.243.23
	Subd. 17.Housing Infrastructure
 		100,000,000
		100,000,000
60,000,000
	
3.25 	This appropriation is for the housing 
3.26 	infrastructure program for the eligible 
3.27 	purposes under Minnesota Statutes, section 
3.28 	462A.37, subdivision 2. This is a onetime 
3.29 	appropriation.

4.1 	Sec. 5. Laws 2023, chapter 37, article 1, section 2, subdivision 25, is amended to read:

4.2
4.3	Subd. 25.Manufactured Home Lending Grants
Program
 		10,000,000
		-0-
	
4.4 	(a) This appropriation is for the a grant to 
4.5 	NeighborWorks Home Partners for a
4.6 	manufactured home lending grant program. 
4.7 	This is a onetime appropriation.
4.8 	(b) The funds must be used for new 
4.9 	manufactured home financing programs; 
4.10 	manufactured home down payment assistance; 
4.11 	or manufactured home repair, renovation, 
4.12 	removal, and site preparation financing 
4.13 	programs.
4.14 	(c) Interest earned and repayments of principal 
4.15 	from loans issued under this subdivision must 
4.16 	be used for the purposes of this subdivision.
4.17 	(d) For the purposes of this subdivision, the 
4.18 	term "manufactured home" has the meaning 
4.19 	given in Minnesota Statutes, section 327B.01, 
4.20 	subdivision 13.

4.21 	Sec. 6. Laws 2023, chapter 37, article 1, section 2, subdivision 29, is amended to read:

4.234.22
	Subd. 29.Community Stabilization
 		45,000,000
		45,000,000
31,750,000
	
4.24 	This appropriation is for the community 
4.25 	stabilization program. This a onetime 
4.26 	appropriation. Of this amount, $10,000,000 is 
4.27 	for a grant to AEON for Huntington Place.

4.28 	Sec. 7. REPEALER.
 4.29 	Laws 2023, chapter 37, article 2, section 13, is repealed.

5.1 	ARTICLE 2
5.2 	HOUSING POLICY

5.3 	Section 1. Minnesota Statutes 2022, section 462A.02, subdivision 10, is amended to read:
5.4 		Subd. 10.Energy conservation decarbonization and climate resilience. It is further 
5.5 	declared that supplies of conventional energy resources are rapidly depleting in quantity 
5.6 	and rising in price and that the burden of these occurrences falls heavily upon the citizens 
5.7 	of Minnesota generally and persons of low and moderate income in particular. These 
5.8 	conditions are adverse to the health, welfare, and safety of all of the citizens of this state. 
5.9 	It is further declared that it is a public purpose to ensure the availability of financing to be 
5.10 	used by all citizens of the state, while giving preference to low and moderate income people, 
5.11 	to assist in the installation in their dwellings of reasonably priced energy conserving systems 
5.12 	including the use of alternative energy resources and equipment so that by the improvement 
5.13 	of the energy efficiency of, clean energy, greenhouse gas emissions reduction, climate 
5.14 	resiliency, and other qualified projects for all housing, the adequacy of the total energy 
5.15 	supply may be preserved for the benefit of all citizens.

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

6.21 	Sec. 3. Minnesota Statutes 2022, section 462A.05, subdivision 14a, is amended to read:
6.22 		Subd. 14a.Rehabilitation loans; existing owner-occupied residential housing. It may 
6.23 	make loans to persons and families of low and moderate income to rehabilitate or to assist 
6.24 	in rehabilitating existing residential housing owned and occupied by those persons or 
6.25 	families. Rehabilitation may include replacement of manufactured homes. No loan shall be 
6.26 	made unless the agency determines that the loan will be used primarily for rehabilitation 
6.27 	work necessary for health or safety, essential accessibility improvements, or to improve the 
6.28 	energy efficiency of, clean energy, greenhouse gas emissions reductions, climate resiliency, 
6.29 	and other qualified projects in the dwelling. No loan for rehabilitation of owner-occupied 
6.30 	residential housing shall be denied solely because the loan will not be used for placing the 
6.31 	residential housing in full compliance with all state, county or municipal building, housing 
6.32 	maintenance, fire, health or similar codes and standards applicable to housing. The amount 
6.33 	of any loan shall not exceed the lesser of (a) a maximum loan amount determined under 
6.34 	rules adopted by the agency not to exceed $37,500, or (b) the actual cost of the work 
7.1 	performed, or (c) that portion of the cost of rehabilitation which the agency determines 
7.2 	cannot otherwise be paid by the person or family without the expenditure of an unreasonable 
7.3 	portion of the income of the person or family. Loans made in whole or in part with federal 
7.4 	funds may exceed the maximum loan amount to the extent necessary to comply with federal 
7.5 	lead abatement requirements prescribed by the funding source. In making loans, the agency 
7.6 	shall determine the circumstances under which and the terms and conditions under which 
7.7 	all or any portion of the loan will be repaid and shall determine the appropriate security for 
7.8 	the repayment of the loan. Loans pursuant to this subdivision may be made with or without 
7.9 	interest or periodic payments.

7.10 	Sec. 4. Minnesota Statutes 2022, section 462A.05, subdivision 14b, is amended to read:
7.11 		Subd. 14b.Energy conservation decarbonization and climate resiliency loans. It 
7.12 	may agree to purchase, make, or otherwise participate in the making, and may enter into 
7.13 	commitments for the purchase, making, or participating in the making, of loans to persons 
7.14 	and families, without limitations relating to the maximum incomes of the borrowers, to 
7.15 	assist in energy conservation rehabilitation measures decarbonization, climate resiliency, 
7.16 	and other qualified projects for existing housing owned by those persons or families 
7.17 	including, but not limited to: weatherstripping and caulking; chimney construction or 
7.18 	improvement; furnace or space heater repair, cleaning or replacement; central air conditioner 
7.19 	installation, repair, maintenance, or replacement; air source or geothermal heat pump 
7.20 	installation, repair, maintenance, or replacement; insulation; windows and doors; and 
7.21 	structural or other directly related repairs or installations essential for energy conservation
7.22 	decarbonization, climate resiliency, and other qualified projects. Loans shall be made only 
7.23 	when the agency determines that financing is not otherwise available, in whole or in part, 
7.24 	from private lenders upon equivalent terms and conditions. Loans under this subdivision 
7.25 	or subdivision 14 may:
7.26 	(1) be integrated with a utility's on-bill repayment program approved under section 
7.27 	216B.241, subdivision 5d; and
7.28 	(2) also be made for the installation of on-site solar energy or energy storage systems.

7.29 	Sec. 5. Minnesota Statutes 2022, section 462A.05, subdivision 15, is amended to read:
7.30 		Subd. 15.Rehabilitation grants. (a) It may make grants to persons and families of low 
7.31 	and moderate income to pay or to assist in paying a loan made pursuant to subdivision 14, 
7.32 	or to rehabilitate or to assist in rehabilitating existing residential housing owned or occupied 
7.33 	by such persons or families. For the purposes of this section, persons of low and moderate 
8.1 	income include administrators appointed pursuant to section 504B.425, paragraph (d). No 
8.2 	grant shall be made unless the agency determines that the grant will be used primarily to 
8.3 	make the housing more desirable to live in, to increase the market value of the housing or 
8.4 	for compliance with state, county or municipal building, housing maintenance, fire, health 
8.5 	or similar codes and standards applicable to housing, or to accomplish energy conservation 
8.6 	related improvements decarbonization, climate resiliency, or other qualified projects. In 
8.7 	unincorporated areas and municipalities not having codes and standards, the agency may, 
8.8 	solely for the purpose of administering this provision, establish codes and standards. No 
8.9 	grant for rehabilitation of owner occupied residential housing shall be denied solely because 
8.10 	the grant will not be used for placing the residential housing in full compliance with all 
8.11 	state, county or municipal building, housing maintenance, fire, health or similar codes and 
8.12 	standards applicable to housing. The amount of any grant shall not exceed the lesser of (a) 
8.13 	$6,000, or (b) the actual cost of the work performed, or (c) that portion of the cost of 
8.14 	rehabilitation which the agency determines cannot otherwise be paid by the person or family 
8.15 	without spending an unreasonable portion of the income of the person or family thereon. 
8.16 	In making grants, the agency shall determine the circumstances under which and the terms 
8.17 	and conditions under which all or any portion thereof will be repaid and shall determine the 
8.18 	appropriate security should repayment be required.
8.19 	(b) The agency may also make grants to rehabilitate or to assist in rehabilitating housing 
8.20 	under this subdivision to persons of low and moderate income for the purpose of qualifying 
8.21 	as foster parents.

8.22 	Sec. 6. Minnesota Statutes 2022, section 462A.05, subdivision 15b, is amended to read:
8.23 		Subd. 15b.Energy conservation decarbonization and climate resiliency grants. (a) 
8.24 	It may make grants to assist in energy conservation rehabilitation measures decarbonization, 
8.25 	climate resiliency, and other qualified projects for existing owner occupied housing including, 
8.26 	but not limited to: insulation, storm windows and doors, furnace or space heater repair, 
8.27 	cleaning or replacement, chimney construction or improvement, weatherstripping and 
8.28 	caulking, and structural or other directly related repairs, or installations essential for energy 
8.29 	conservation decarbonization, climate resiliency, and other qualified projects. The grant to 
8.30 	any household shall not exceed $2,000.
8.31 	(b) To be eligible for an emergency energy conservation decarbonization and climate 
8.32 	resiliency grant, a household must be certified as eligible to receive emergency residential 
8.33 	heating assistance under either the federal or the state program, and either (1) have had a 
8.34 	heating cost for the preceding heating season that exceeded 120 percent of the regional 
9.1 	average for the preceding heating season for that energy source as determined by the 
9.2 	commissioner of employment and economic development, or (2) be eligible to receive a 
9.3 	federal energy conservation grant, but be precluded from receiving the grant because of a 
9.4 	need for directly related repairs that cannot be paid for under the federal program. The 
9.5 	Housing Finance Agency shall make a reasonable effort to determine whether other state 
9.6 	or federal loan and grant programs are available and adequate to finance the intended 
9.7 	improvements. An emergency energy conservation grant may be made in conjunction with 
9.8 	grants or loans from other state or federal programs that finance other needed rehabilitation 
9.9 	work. The receipt of a grant pursuant to this section shall not affect the applicant's eligibility 
9.10 	for other Housing Finance Agency loan or grant programs.

9.11 	Sec. 7. Minnesota Statutes 2022, section 462A.05, subdivision 21, is amended to read:
9.12 		Subd. 21.Rental property loans. The agency may make or purchase loans to owners 
9.13 	of rental property that is occupied or intended for occupancy primarily by low- and 
9.14 	moderate-income tenants and which does not comply with the standards established in 
9.15 	section 326B.106, subdivision 1, for the purpose of energy improvements decarbonization, 
9.16 	climate resiliency, and other qualified projects necessary to bring the property into full or 
9.17 	partial compliance with these standards. For property which meets the other requirements 
9.18 	of this subdivision, a loan may also be used for moderate rehabilitation of the property. The 
9.19 	authority granted in this subdivision is in addition to and not in limitation of any other 
9.20 	authority granted to the agency in this chapter. The limitations on eligible mortgagors 
9.21 	contained in section 462A.03, subdivision 13, do not apply to loans under this subdivision. 
9.22 	Loans for the improvement of rental property pursuant to this subdivision may contain 
9.23 	provisions that repayment is not required in whole or in part subject to terms and conditions 
9.24 	determined by the agency to be necessary and desirable to encourage owners to maximize 
9.25 	rehabilitation of properties.

9.26 	Sec. 8. Minnesota Statutes 2022, section 462A.05, subdivision 23, is amended to read:
9.27 		Subd. 23.Insuring financial institution loans. The agency may participate in loans or 
9.28 	establish a fund to insure loans, or portions of loans, that are made by any banking institution, 
9.29 	savings association, or other lender approved by the agency, organized under the laws of 
9.30 	this or any other state or of the United States having an office in this state, to owners of 
9.31 	renter-occupied homes or apartments that do not comply with standards set forth in section 
9.32 	326B.106, subdivision 1, without limitations relating to the maximum incomes of the owners 
9.33 	or tenants. The proceeds of the insured portion of the loan must be used to pay the costs of 
9.34 	improvements, including all related structural and other improvements, that will reduce 
10.1 	energy consumption, that will decarbonize, and that will ensure the climate resiliency of 
10.2 	housing.

10.3 	Sec. 9. Minnesota Statutes 2023 Supplement, section 462A.05, subdivision 45, is amended 
10.4 	to read:
10.5 		Subd. 45.Indian Tribes. Notwithstanding any other provision in this chapter, at its 
10.6 	discretion the agency may make any federally recognized Indian Tribe in Minnesota, or 
10.7 	their associated Tribally Designated Housing Entity (TDHE) as defined by United States 
10.8 	Code, title 25, section 4103(22), eligible for agency funding authorized under this chapter.

10.9 	Sec. 10. Minnesota Statutes 2022, section 462A.07, is amended by adding a subdivision 
10.10 	to read:
10.11 		Subd. 19.Eligibility for agency programs.  The agency may determine that a household 
10.12 	or project unit meets the rent or income requirements for a program if the household or unit 
10.13 	receives or participates in income-based state or federal public assistance benefits, including 
10.14 	but not limited to:
10.15 	(1) child care assistance programs under chapter 119B;
10.16 	(2) general assistance, Minnesota supplemental aid, or food support under chapter 256D;
10.17 	(3) housing support under chapter 256I;
10.18 	(4) Minnesota family investment program and diversionary work program under chapter 
10.19 	256J; and
10.20 	(5) economic assistance programs under chapter 256P.

10.21 	Sec. 11. Minnesota Statutes 2022, section 462A.21, subdivision 7, is amended to read:
10.22 		Subd. 7.Energy efficiency loans. The agency may make loans to low and moderate 
10.23 	income persons who own existing residential housing for the purpose of improving the 
10.24 	efficient energy utilization decarbonization and climate resiliency of the housing. Permitted 
10.25 	improvements shall include installation or upgrading of ceiling, wall, floor and duct 
10.26 	insulation, storm windows and doors, and caulking and weatherstripping. The improvements 
10.27 	shall not be inconsistent with the energy standards as promulgated as part of the State 
10.28 	Building Code; provided that the improvements need not bring the housing into full 
10.29 	compliance with the energy standards. Any loan for such purpose shall be made only upon 
10.30 	determination by the agency that such loan is not otherwise available, wholly or in part, 
10.31 	from private lenders upon equivalent terms and conditions. The agency may promulgate 
11.1 	rules as necessary to implement and make specific the provisions of this subdivision. The 
11.2 	rules shall be designed to permit the state, to the extent not inconsistent with this chapter, 
11.3 	to seek federal grants or loans for energy purposes decarbonization, climate resiliency, and 
11.4 	other qualified projects.

11.5 	Sec. 12. Minnesota Statutes 2023 Supplement, section 462A.22, subdivision 1, is amended 
11.6 	to read:
11.7 		Subdivision 1.Debt ceiling. The aggregate principal amount of general obligation bonds 
11.8 	and notes which are outstanding at any time, excluding the principal amount of any bonds 
11.9 	and notes refunded by the issuance of new bonds or notes, shall not exceed the sum of 
11.10 	$5,000,000,000 $7,000,000,000.

11.11 	Sec. 13. Minnesota Statutes 2022, section 462A.35, subdivision 2, is amended to read:
11.12 		Subd. 2.Expending funds. The agency may expend the money in the Minnesota 
11.13 	manufactured home relocation trust fund to the extent necessary to carry out the objectives 
11.14 	of section 327C.095, subdivision 13, by making payments to manufactured home owners, 
11.15 	or other parties approved by the third-party neutral, under subdivision 13, paragraphs (a) 
11.16 	and (e), and to pay the costs of administering the fund. Money in the fund is appropriated 
11.17 	to the agency for these purposes and to the commissioner of management and budget the 
11.18 	Minnesota Housing Finance Agency to pay costs incurred by the commissioner of 
11.19 	management and budget the Minnesota Housing Finance Agency to administer the fund.

11.20 	Sec. 14. Minnesota Statutes 2023 Supplement, section 462A.37, subdivision 2, is amended 
11.21 	to read:
11.22 		Subd. 2.Authorization. (a) The agency may issue up to $30,000,000 in aggregate 
11.23 	principal amount of housing infrastructure bonds in one or more series to which the payment 
11.24 	made under this section may be pledged. The housing infrastructure bonds authorized in 
11.25 	this subdivision may be issued to fund loans, or grants for the purposes of clauses (4) and 
11.26 	(7), on terms and conditions the agency deems appropriate, made for one or more of the 
11.27 	following purposes:
11.28 	(1) to finance the costs of the construction, acquisition, and rehabilitation of supportive 
11.29 	housing for individuals and families who are without a permanent residence;
11.30 	(2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned 
11.31 	housing to be used for affordable rental housing and the costs of new construction of rental 
12.1 	housing on abandoned or foreclosed property where the existing structures will be demolished 
12.2 	or removed;
12.3 	(3) to finance that portion of the costs of acquisition of property that is attributable to 
12.4 	the land to be leased by community land trusts to low- and moderate-income home buyers;
12.5 	(4) to finance the acquisition, improvement, and infrastructure of manufactured home 
12.6 	parks under section 462A.2035, subdivision 1b;
12.7 	(5) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction 
12.8 	of senior housing;
12.9 	(6) to finance the costs of acquisition, rehabilitation, and replacement of federally assisted 
12.10 	rental housing and for the refinancing of costs of the construction, acquisition, and 
12.11 	rehabilitation of federally assisted rental housing, including providing funds to refund, in 
12.12 	whole or in part, outstanding bonds previously issued by the agency or another government 
12.13 	unit to finance or refinance such costs;
12.14 	(7) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction 
12.15 	of single-family housing; and
12.16 	(8) to finance the costs of construction, acquisition, and rehabilitation of permanent 
12.17 	housing that is affordable to households with incomes at or below 50 percent of the area 
12.18 	median income for the applicable county or metropolitan area as published by the Department 
12.19 	of Housing and Urban Development, as adjusted for household size.
12.20 	(b) Among comparable proposals for permanent supportive housing, preference shall 
12.21 	be given to permanent supportive housing for veterans and other individuals or families 
12.22 	who:
12.23 	(1) either have been without a permanent residence for at least 12 months or at least four 
12.24 	times in the last three years; or
12.25 	(2) are at significant risk of lacking a permanent residence for 12 months or at least four 
12.26 	times in the last three years.
12.27 	(c) Among comparable proposals for senior housing, the agency must give priority to 
12.28 	requests for projects that:
12.29 	(1) demonstrate a commitment to maintaining the housing financed as affordable to 
12.30 	senior households;
12.31 	(2) leverage other sources of funding to finance the project, including the use of 
12.32 	low-income housing tax credits;
13.1 	(3) provide access to services to residents and demonstrate the ability to increase physical 
13.2 	supports and support services as residents age and experience increasing levels of disability; 
13.3 	and
13.4 	(4) include households with incomes that do not exceed 30 percent of the median 
13.5 	household income for the metropolitan area.
13.6 	(d) To the extent practicable, the agency shall balance the loans made between projects 
13.7 	in the metropolitan area and projects outside the metropolitan area. Of the loans made to 
13.8 	projects outside the metropolitan area, the agency shall, to the extent practicable, balance 
13.9 	the loans made between projects in counties or cities with a population of 20,000 or less, 
13.10 	as established by the most recent decennial census, and projects in counties or cities with 
13.11 	populations in excess of 20,000.
13.12 	(e) Among comparable proposals for permanent housing, the agency must give preference 
13.13 	to projects that will provide housing that is affordable to households at or below 30 percent 
13.14 	of the area median income.
13.15 	(f) If a loan recipient uses the loan for new construction or substantial rehabilitation as 
13.16 	defined by the agency on a building containing more than four units, the loan recipient must 
13.17 	construct, convert, or otherwise adapt the building to include:
13.18 	(1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
13.19 	accessible units, as defined by section 1002 of the current State Building Code Accessibility 
13.20 	Provisions for Dwelling Units in Minnesota, and include at least one roll-in shower in at 
13.21 	least one accessible unit as defined by section 1002 of the current State Building Code 
13.22 	Accessibility Provisions for Dwelling Units in Minnesota; and
13.23 	(2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
13.24 	sensory-accessible units that include:
13.25 	(A) soundproofing between shared walls for first and second floor units;
13.26 	(B) no florescent lighting in units and common areas;
13.27 	(C) low-fume paint;
13.28 	(D) low-chemical carpet; and
13.29 	(E) low-chemical carpet glue in units and common areas.
13.30 	Nothing in this paragraph relieves a project funded by the agency from meeting other 
13.31 	applicable accessibility requirements.

14.1 	Sec. 15. Minnesota Statutes 2022, section 462A.37, is amended by adding a subdivision 
14.2 	to read:
14.3 		Subd. 2j.Additional authorization. In addition to the amount authorized in subdivisions 
14.4 	2 to 2i, the agency may issue up to $50,000,000 in one or more series to which the payments 
14.5 	under this section may be pledged.

14.6 	Sec. 16. Minnesota Statutes 2023 Supplement, section 462A.37, subdivision 5, is amended 
14.7 	to read:
14.8 		Subd. 5.Additional appropriation. (a) The agency must certify annually to the 
14.9 	commissioner of management and budget the actual amount of annual debt service on each 
14.10 	series of bonds issued under this section.
14.11 	(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure 
14.12 	bonds issued under subdivision 2a, or housing infrastructure bonds issued to refund those 
14.13 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
14.14 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
14.15 	the amount certified under paragraph (a), not to exceed $6,400,000 annually. The amounts 
14.16 	necessary to make the transfers are appropriated from the general fund to the commissioner 
14.17 	of management and budget.
14.18 	(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure 
14.19 	bonds issued under subdivision 2b, or housing infrastructure bonds issued to refund those 
14.20 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
14.21 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
14.22 	the amount certified under paragraph (a), not to exceed $800,000 annually. The amounts 
14.23 	necessary to make the transfers are appropriated from the general fund to the commissioner 
14.24 	of management and budget.
14.25 	(d) Each July 15, beginning in 2019 and through 2040, if any housing infrastructure 
14.26 	bonds issued under subdivision 2c, or housing infrastructure bonds issued to refund those 
14.27 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
14.28 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
14.29 	the amount certified under paragraph (a), not to exceed $2,800,000 annually. The amounts 
14.30 	necessary to make the transfers are appropriated from the general fund to the commissioner 
14.31 	of management and budget.
14.32 	(e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure 
14.33 	bonds issued under subdivision 2d, or housing infrastructure bonds issued to refund those 
15.1 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
15.2 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
15.3 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
15.4 	appropriated from the general fund to the commissioner of management and budget.
15.5 	(f) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure 
15.6 	bonds issued under subdivision 2e, or housing infrastructure bonds issued to refund those 
15.7 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
15.8 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
15.9 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
15.10 	appropriated from the general fund to the commissioner of management and budget.
15.11 	(g) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure 
15.12 	bonds issued under subdivision 2f, or housing infrastructure bonds issued to refund those 
15.13 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
15.14 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
15.15 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
15.16 	appropriated from the general fund to the commissioner of management and budget.
15.17 	(h) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure 
15.18 	bonds issued under subdivision 2g, or housing infrastructure bonds issued to refund those 
15.19 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
15.20 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
15.21 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
15.22 	appropriated from the general fund to the commissioner of management and budget.
15.23 	(i) Each July 15, beginning in 2023 and through 2044, if any housing infrastructure 
15.24 	bonds issued under subdivision 2h, or housing infrastructure bonds issued to refund those 
15.25 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
15.26 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
15.27 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
15.28 	appropriated from the general fund to the commissioner of management and budget.
15.29 	(j) Each July 15, beginning in 2026 and through 2047, if any housing infrastructure 
15.30 	bonds issued under subdivision 2j, or housing infrastructure bonds issued to refund those 
15.31 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
15.32 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
15.33 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
15.34 	appropriated from the general fund to the commissioner of management and budget.
16.1 	(j)(k) The agency may pledge to the payment of the housing infrastructure bonds the 
16.2 	payments to be made by the state under this section.

16.3 	Sec. 17. Minnesota Statutes 2023 Supplement, section 462A.39, subdivision 2, is amended 
16.4 	to read:
16.5 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
16.6 	meanings given.
16.7 	(b) "Eligible project area" means a home rule charter or statutory city located outside 
16.8 	of a metropolitan county as defined in section 473.121, subdivision 4, with a population 
16.9 	exceeding 500; a community that has a combined population of 1,500 residents located 
16.10 	within 15 miles of a home rule charter or statutory city located outside a metropolitan county 
16.11 	as defined in section 473.121, subdivision 4; federally recognized Tribal reservations; or 
16.12 	an area served by a joint county-city economic development authority.
16.13 	(c) "Joint county-city economic development authority" means an economic development 
16.14 	authority formed under Laws 1988, chapter 516, section 1, as a joint partnership between 
16.15 	a city and county and excluding those established by the county only.
16.16 	(d) "Market rate residential rental properties" means properties that are rented at market 
16.17 	value, including new modular homes, new manufactured homes, and new manufactured 
16.18 	homes on leased land or in a manufactured home park, and may include rental developments 
16.19 	that have a portion of income-restricted units.
16.20 	(e) "Qualified expenditure" means expenditures for market rate residential rental 
16.21 	properties including acquisition of property; construction of improvements; and provisions 
16.22 	of loans or subsidies, grants, interest rate subsidies, public infrastructure, and related financing 
16.23 	costs.

16.24 	Sec. 18. Minnesota Statutes 2023 Supplement, section 462A.395, is amended to read:
16.25 	462A.395 GREATER MINNESOTA HOUSING INFRASTRUCTURE GRANT 
16.26 	PROGRAM.
16.27 		Subdivision 1.Grant program established. The commissioner of the Minnesota Housing 
16.28 	Finance Agency may make grants to counties and cities to provide up to 50 percent of the 
16.29 	capital costs of public infrastructure necessary for an eligible workforce housing development 
16.30 	project. The commissioner may make a grant award only after determining that nonstate 
16.31 	resources are committed to complete the project. The nonstate contribution may be cash, 
16.32 	other committed grant funds, or in kind. In-kind contributions may include the value of the 
17.1 	site, whether the site is prepared before or after the law appropriating money for the grant 
17.2 	is enacted.
17.3 		Subd. 2.Definitions. (a) For the purposes of this section, the following terms have the 
17.4 	meanings given.
17.5 	(b) "City" means a statutory or home rule charter city located outside the metropolitan 
17.6 	area, as defined in section 473.121, subdivision 2.
17.7 	(c) "Housing infrastructure" means publicly owned physical infrastructure necessary to 
17.8 	support housing development projects, including but not limited to sewers, water supply 
17.9 	systems, utility extensions, streets, wastewater treatment systems, stormwater management 
17.10 	systems, and facilities for pretreatment of wastewater to remove phosphorus.
17.11 		Subd. 3.Eligible projects. Housing projects eligible for a grant under this section may 
17.12 	be a single-family or multifamily housing development, and either owner-occupied or rental.
17.13 	Housing projects eligible for a grant under this section may also be a manufactured home 
17.14 	development qualifying for homestead treatment under section 273.124, subdivision 3a.
17.15 		Subd. 4.Application. (a) The commissioner must develop forms and procedures for 
17.16 	soliciting and reviewing applications for grants under this section. At a minimum, a city or 
17.17 	county must include in its application a resolution of the county board or city council 
17.18 	certifying that the required nonstate match is available. The commissioner must evaluate 
17.19 	complete applications for funding for eligible projects to determine that:
17.20 	(1) the project is necessary to increase sites available for housing development that will 
17.21 	provide adequate housing stock for the current or future workforce; and
17.22 	(2) the increase in workforce housing will result in substantial public and private capital 
17.23 	investment in the county or city in which the project would be located.
17.24 	(b) The determination of whether to make a grant for a site is within the discretion of 
17.25 	the commissioner, subject to this section. The commissioner's decisions and application of 
17.26 	the criteria are not subject to judicial review, except for abuse of discretion.
17.27 		Subd. 5.Maximum grant amount. A county or city may receive no more than $30,000
17.28 	$40,000 per lot for single-family, duplex, triplex, or fourplex housing developed, no more 
17.29 	than $60,000 per manufactured housing lot, and no more than $180,000 per lot for 
17.30 	multifamily housing with more than four units per building. A county or city may receive 
17.31 	no more than $500,000 in two years for one or more housing developments. The $500,000 
17.32 	limitation does not apply to use on manufactured housing developments.

18.1 	Sec. 19. Minnesota Statutes 2022, section 462A.40, subdivision 2, is amended to read:
18.2 		Subd. 2.Use of funds; grant and loan program. (a) The agency may award grants and 
18.3 	loans to be used for multifamily and single family developments for persons and families 
18.4 	of low and moderate income. Allowable use of the funds include: gap financing, as defined 
18.5 	in section 462A.33, subdivision 1; new construction; acquisition; rehabilitation; demolition 
18.6 	or removal of existing structures; construction financing; permanent financing; interest rate 
18.7 	reduction; and refinancing.
18.8 	(b) The agency may give preference for grants and loans to comparable proposals that 
18.9 	include regulatory changes or waivers that result in identifiable cost avoidance or cost 
18.10 	reductions, including but not limited to increased density, flexibility in site development 
18.11 	standards, or zoning code requirements.
18.12 	(c) The agency shall separately set aside:
18.13 	(1) at least ten percent of the financing under this section for housing units located in a 
18.14 	township or city with a population of 2,500 or less that is located outside the metropolitan 
18.15 	area, as defined in section 473.121, subdivision 2;
18.16 	(2) at least 35 percent of the financing under this section for housing for persons and 
18.17 	families whose income is 50 percent or less of the area median income for the applicable 
18.18 	county or metropolitan area as published by the Department of Housing and Urban 
18.19 	Development, as adjusted for household size; and
18.20 	(3) at least 25 percent of the financing under this section for single-family housing.
18.21 	(d) If by September 1 of each year the agency does not receive requests to use all of the 
18.22 	amounts set aside under paragraph (c), the agency may use any remaining financing for 
18.23 	other projects eligible under this section.

18.24 	Sec. 20. Minnesota Statutes 2022, section 462A.40, subdivision 3, is amended to read:
18.25 		Subd. 3.Eligible recipients; definitions; restrictions; use of funds. (a) The agency 
18.26 	may award a grant or a loan to any recipient that qualifies under subdivision 2. The agency 
18.27 	must not award a grant or a loan to a disqualified individual or disqualified business.
18.28 	(b) For the purposes of this subdivision disqualified individual means an individual who:
18.29 	(1) an individual who or an individual whose immediate family member made a 
18.30 	contribution to the account in the current or prior taxable year and received a credit certificate;
18.31 	(2) an individual who or an individual whose immediate family member owns the housing 
18.32 	for which the grant or loan will be used and is using that housing as their domicile;
19.1 	(3) an individual who meets the following criteria:
19.2 	(i) the individual is an officer or principal of a business entity; and
19.3 	(ii) that business entity made a contribution to the account in the current or previous 
19.4 	taxable year and received a credit certificate; or
19.5 	(4) an individual who meets the following criteria:
19.6 	(i) the individual directly owns, controls, or holds the power to vote 20 percent or more 
19.7 	of the outstanding securities of a business entity; and
19.8 	(ii) that business entity made a contribution to the account in the current or previous 
19.9 	taxable year and received a credit certificate.
19.10 	(c) For the purposes of this subdivision disqualified business means a business entity 
19.11 	that:
19.12 	(1) made a contribution to the account in the current or prior taxable year and received 
19.13 	a credit certificate;
19.14 	(2) has an officer or principal who is an individual who made a contribution to the 
19.15 	account in the current or previous taxable year and received a credit certificate; or
19.16 	(3) meets the following criteria:
19.17 	(i) the business entity is directly owned, controlled, or is subject to the power to vote 20 
19.18 	percent or more of the outstanding securities by an individual or business entity; and
19.19 	(ii) that controlling individual or business entity made a contribution to the account in 
19.20 	the current or previous taxable year and received a credit certificate.
19.21 	(d) The disqualifications in paragraphs (b) and (c) apply if the taxpayer would be 
19.22 	disqualified either individually or in combination with one or more members of the taxpayer's 
19.23 	family, as defined in the Internal Revenue Code, section 267(c)(4). For purposes of this 
19.24 	subdivision, "immediate family" means the taxpayer's spouse, parent or parent's spouse, 
19.25 	sibling or sibling's spouse, or child or child's spouse. For a married couple filing a joint 
19.26 	return, the limitations in this paragraph subdivision apply collectively to the taxpayer and 
19.27 	spouse. For purposes of determining the ownership interest of a taxpayer under paragraph 
19.28 	(a), clause (4), the rules under sections 267(c) and 267(e) of the Internal Revenue Code 
19.29 	apply.
19.30 	(e) Before applying for a grant or loan, all recipients must sign a disclosure that the 
19.31 	disqualifications under this subdivision do not apply. The Minnesota Housing Finance 
20.1 	Agency must prescribe the form of the disclosure. The Minnesota Housing Finance Agency 
20.2 	may rely on the disclosure to determine the eligibility of recipients under paragraph (a).
20.3 	(f) The agency may award grants or loans to a city as defined in section 462A.03, 
20.4 	subdivision 21; a federally recognized American Indian tribe or subdivision located in 
20.5 	Minnesota; a tribal housing corporation; a private developer; a nonprofit organization; a 
20.6 	housing and redevelopment authority under sections 469.001 to 469.047; a public housing 
20.7 	authority or agency authorized by law to exercise any of the powers granted by sections 
20.8 	469.001 to 469.047; or the owner of the housing. The provisions of subdivision 2, and 
20.9 	paragraphs (a) to (e) and (g) of this subdivision, regarding the use of funds and eligible 
20.10 	recipients apply to grants and loans awarded under this paragraph.
20.11 	(g) Except for the set-aside provided in subdivision 2, paragraph (d), Eligible recipients 
20.12 	must use the funds to serve households that meet the income limits as provided in section 
20.13 	462A.33, subdivision 5.

20.14 	Sec. 21. Minnesota Statutes 2022, section 469.012, is amended by adding a subdivision 
20.15 	to read:
20.16 		Subd. 14.Assistance to preserve naturally occurring affordable housing. An authority 
20.17 	may provide financial assistance of any kind, including but not limited to grants, loans, 
20.18 	forgivable loans, payment of interest, interest rate reduction, issuance of bonds and the 
20.19 	spending of the proceeds of the bonds, to assist with the capital repair or replacement of an 
20.20 	asset or category of assets with a regular life span in excess of 25 years and with a project 
20.21 	cost in excess of $5,000,000, where: (1) the capital repair project is in a multifamily housing 
20.22 	building, whether owner-occupied or rental; (2) at least 25 percent of the units were sold 
20.23 	or are rented to households meeting low-income requirements set by the United States 
20.24 	Department of Housing and Urban Development; and (3) more than 25 years has elapsed 
20.25 	since the asset or category of assets has been repaired or replaced. In the case of a common 
20.26 	interest community, the assistance authorized herein may be provided whether or not the 
20.27 	assets being repaired or replaced are owned by the individual unit owners or by the common 
20.28 	interest community of which the individual unit owners are part of the membership, and 
20.29 	may be provided to the common interest community or to individual unit owners, or both.

20.30 	Sec. 22. Laws 2023, chapter 37, article 1, section 2, subdivision 2, is amended to read:

20.31	Subd. 2.Challenge Program
 		60,425,000
		60,425,000
	
20.32 	(a) This appropriation is for the economic 
20.33 	development and housing challenge program 
21.1 	under Minnesota Statutes, sections 462A.33
21.2 	and 462A.07, subdivision 14.
21.3 	(b) Of this amount, $6,425,000 each year shall 
21.4 	be made available during the first 11 months 
21.5 	of the fiscal year exclusively for housing 
21.6 	projects for American Indians. Any funds not 
21.7 	committed to housing projects for American 
21.8 	Indians within the annual consolidated request 
21.9 	for funding processes may be available for 
21.10 	any eligible activity under Minnesota Statutes, 
21.11 	sections 462A.33 and 462A.07, subdivision 
21.12 	14.
21.13 	(c) Of the amount in the first year, $5,000,000 
21.14 	is for a grant to Urban Homeworks to expand 
21.15 	initiatives pertaining to deeply affordable 
21.16 	homeownership in Minneapolis neighborhoods 
21.17 	with over 40 percent of residents identifying 
21.18 	as Black, Indigenous, or People of Color and 
21.19 	at least 40 percent of residents making less 
21.20 	than 50 percent of the area median income. 
21.21 	The grant is to be used for acquisition, 
21.22 	rehabilitation, gap financing as defined in 
21.23 	Minnesota Statutes, section 462A.33, 
21.24 	subdivision 1, and construction of homes to 
21.25 	be sold to households with incomes of 50 to
21.26 	at or below 60 percent of the area median 
21.27 	income. This is a onetime appropriation, and 
21.28 	is available until June 30, 2027. By December 
21.29 	15 each year until 2027, Urban Homeworks 
21.30 	must submit a report to the chairs and ranking 
21.31 	minority members of the legislative 
21.32 	committees having jurisdiction over housing 
21.33 	finance and policy. The report must include 
21.34 	the amount used for (1) acquisition, (2) 
21.35 	rehabilitation, and (3) construction of housing 
22.1 	units, along with the number of housing units 
22.2 	acquired, rehabilitated, or constructed, and the 
22.3 	amount of the appropriation that has been 
22.4 	spent. If any home was sold or transferred 
22.5 	within the year covered by the report, Urban 
22.6 	Homeworks must include the price at which 
22.7 	the home was sold, as well as how much was 
22.8 	spent to complete the project before sale.
22.9 	(d) Of the amount in the first year, $2,000,000 
22.10 	is for a grant to Rondo Community Land 
22.11 	Trust. This is a onetime appropriation.
22.12 	(e) The base for this program in fiscal year 
22.13 	2026 and beyond is $12,925,000.

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

22.15 	Sec. 23. Laws 2023, chapter 37, article 1, section 2, subdivision 32, is amended to read:

22.16	Subd. 32.Northland Foundation
 		1,000,000
		-0-
	
22.17 	This appropriation is for a grant to Northland 
22.18 	Foundation for use on expenditures authorized 
22.19 	under Minnesota Statutes, section 462C.16, 
22.20 	subdivision 3, to assist and support 
22.21 	communities in providing housing locally, and 
22.22 	on for assisting local governments to establish 
22.23 	local or regional housing trust funds. 
22.24 	Northland Foundation may award grants and 
22.25 	loans to other entities to expend on authorized 
22.26 	expenditures under this section. This 
22.27 	appropriation is onetime and available until 
22.28 	June 30, 2025.

22.29 	Sec. 24. Laws 2023, chapter 37, article 2, section 12, subdivision 2, is amended to read:
22.30 		Subd. 2.Eligible homebuyer. For the purposes of this section, an "eligible homebuyer" 
22.31 	means an individual:
22.32 	(1) whose income is at or below 130 percent of area median income;
23.1 	(2) who resides in a census tract where at least 60 percent of occupied housing units are 
23.2 	renter-occupied, based on the most recent estimates or experimental estimates provided by 
23.3 	the American Community Survey of the United States Census Bureau;
23.4 	(3) (2) who is financing the purchase of an eligible property with an interest-free, 
23.5 	fee-based mortgage; and
23.6 	(4) (3) who is a first-time homebuyer as defined by Code of Federal Regulations, title 
23.7 	24, section 92.2.

23.8 	Sec. 25. HOUSING AFFORDABILITY PRESERVATION INVESTMENT.
 23.9 		Subdivision 1.Establishment. The commissioner of the Minnesota Housing Finance 
23.10 	Agency must establish and administer a grant program to support recapitalization of distressed 
23.11 	buildings.
23.12 		Subd. 2.Definitions. For purposes of this section:
23.13 	(1) "distressed building" means an existing rental housing building in which the units 
23.14 	are restricted to households at or below 60 percent of the area median income, and:
23.15 	(i) is in foreclosure proceedings;
23.16 	(ii) has two or more years of negative net operating income;
23.17 	(iii) has two or more years with a debt service coverage ratio of less than one; or
23.18 	(iv) has necessary costs of repair, replacement, or maintenance that exceed the project 
23.19 	reserves available for those purposes; and
23.20 	(2) "recapitalization" means financing for the physical and financial needs of a distressed 
23.21 	building, including restructuring and forgiveness of amortizing and deferred debt, principal 
23.22 	and interest paydown, interest rate write-down, deferral of debt payments, mortgage payment 
23.23 	forbearance, deferred maintenance, security services, property insurance, capital 
23.24 	improvements, funding of reserves for supportive services, and property operations.
23.25 		Subd. 3.Grant program. The commissioner must use a request for proposal process 
23.26 	to consider funding requests and award grants to finance recapitalization of distressed 
23.27 	buildings. In awarding grants, the commissioner must give priority to distressed buildings 
23.28 	most at risk of losing affordable housing, to the extent practicable.
23.29 		Subd. 4.Report. By February 1, 2025, and November 30, 2025, the commissioner shall 
23.30 	submit a report to the chairs and ranking minority members of the legislative committees 
23.31 	having jurisdiction over housing and homelessness. The report must detail the number of 
24.1 	applications received, the amount of funding requested, the grants awarded, and the number 
24.2 	of affordable housing units preserved through awards under this section.

24.3 	Sec. 26. REPORT ON RENTAL HOUSING PROGRAMS.
 24.4 	The commissioner of the Minnesota Housing Finance Agency must review the financial 
24.5 	impacts of the low-income rental property tax classification in Minnesota Statutes, section 
24.6 	273.128, and the low-income housing tax credit program under section 42 of the Internal 
24.7 	Revenue Code, including the extent of rent increases and housing related expenses. By 
24.8 	December 15, 2024, the commissioner must report on the findings and recommendations 
24.9 	for legislative changes to the chairs and ranking minority members of the legislative 
24.10 	committees with jurisdiction over human services, housing finance, and taxes. The 
24.11 	commissioner must use existing financial resources for this review and report.

24.12 	Sec. 27. SINGLE-EXIT STAIRWAY APARTMENT BUILDING REPORT.
 24.13 	The commissioner of labor and industry must evaluate conditions under which single-exit 
24.14 	stairway apartment buildings above three stories up to 75 feet, would achieve life safety 
24.15 	outcomes equal to or superior to currently adopted codes, including those for multifamily 
24.16 	buildings with very large footprints and single-family houses. The commissioner must use 
24.17 	research techniques that include smoke modeling, egress modeling, an analysis of fire loss 
24.18 	history in jurisdictions that have already adopted similar provisions, and interviews with 
24.19 	fire services regarding fire suppression and rescue techniques in such buildings. The 
24.20 	commissioner shall consult with relevant stakeholders, including but not limited to the 
24.21 	Minnesota Fire Chiefs Association, Minnesota Professional Firefighters Association, 
24.22 	Association of Minnesota Building Officials, Housing First Minnesota, Center for Building 
24.23 	in North America, and faculty from the relevant department of a university which grants 
24.24 	degrees in fire protection engineering. The commissioner may contract with external experts 
24.25 	or an independent third party to develop the report and perform other functions required of 
24.26 	the commissioner under this section. By December 31, 2025, the commissioner must report 
24.27 	on the findings to the chairs and ranking minority members of the legislative committees 
24.28 	with jurisdiction over housing and state building codes.

24.29 	Sec. 28. REPORT TO THE LEGISLATURE.
 24.30 	By January 15 each year, the commissioner of the Minnesota Housing Finance Agency 
24.31 	must submit a report to the chairs and ranking minority members of the legislative committees 
24.32 	having jurisdiction over housing finance and policy containing the following information:
25.1 	(1) the total number of applications for funding;
25.2 	(2) the amount of funding requested;
25.3 	(3) the amounts of funding awarded; and
25.4 	(4) the number of housing units that are affected by funding awards, including the number 
25.5 	of:
25.6 	(i) newly constructed owner-occupied units;
25.7 	(ii) renovated owner-occupied units;
25.8 	(iii) newly constructed rental units; and
25.9 	(iv) renovated rental units.

25.10 	Sec. 29. REVISOR INSTRUCTION.
 25.11 	The revisor of statutes shall renumber Minnesota Statutes, section 462A.37, subdivision 
25.12 	2i, as Minnesota Statutes, section 462A.37, subdivision 3a. The revisor shall also make 
25.13 	necessary cross-reference changes in Minnesota Statutes.

25.14 	ARTICLE 3
25.15 	EXPEDITING RENTAL ASSISTANCE

25.16 	Section 1. [462A.2096] ANNUAL PROJECTION OF EMERGENCY RENTAL 
25.17 	ASSISTANCE NEEDS.
25.18 	The agency must develop a projection of emergency rental assistance needs in 
25.19 	consultation with the commissioner of human services and representatives from county and 
25.20 	Tribal housing administrators and housing nonprofit agencies. The projection must identify 
25.21 	the amount of funding required to meet all emergency rental assistance needs, including 
25.22 	the family homelessness prevention and assistance program, the emergency assistance 
25.23 	program, and emergency general assistance. By January 15 each year, the commissioner 
25.24 	must submit a report on the projected need for emergency rental assistance to the chairs and 
25.25 	ranking minority members of the legislative committees having jurisdiction over housing 
25.26 	and human services finance and policy.

25.27 	Sec. 2. DATA COLLECTION TO MEASURE TIMELINESS OF RENTAL 
25.28 	ASSISTANCE.
 25.29 	The commissioner of the Minnesota Housing Finance Agency must work with the 
25.30 	commissioner of human services to develop criteria for measuring the timeliness of 
26.1 	processing applications for rental assistance. The commissioner of the Minnesota Housing 
26.2 	Finance Agency must collect data to monitor application speeds of the family homelessness 
26.3 	prevention and assistance program and use the collected data to inform improvements to 
26.4 	application processing systems. By January 15, 2027, the commissioner of the Minnesota 
26.5 	Housing Finance Agency must submit a report to the chairs and ranking minority members 
26.6 	of the legislative committees having jurisdiction over housing finance and policy. The report 
26.7 	must include analysis of the data collected and whether goals have been met to (1) process 
26.8 	an emergency rental assistance application within two weeks of the receipt of a complete 
26.9 	application, and (2) if approved, make payment to a landlord within 30 days of the receipt 
26.10 	of a complete application.

26.11 	Sec. 3. E-SIGNATURE OPTIONS FOR RENTAL ASSISTANCE.
 26.12 	The commissioner of the Minnesota Housing Finance Agency, working with the 
26.13 	commissioner of human services, shall develop uniform e-signature options to be used in 
26.14 	applications for the family homelessness prevention and assistance program. No later than 
26.15 	June 30, 2026, the commissioner shall require administrators of the family homelessness 
26.16 	prevention and assistance program to incorporate and implement the developed e-signature 
26.17 	options. The commissioner must notify the chairs and ranking minority members of the 
26.18 	legislative committees with jurisdiction over housing of the date when the e-signature options 
26.19 	are implemented.

26.20 	Sec. 4. VERIFICATION PROCEDURES FOR RENTAL ASSISTANCE.
 26.21 	(a) The commissioner of the Minnesota Housing Finance Agency, working with program 
26.22 	administrators, must develop recommendations to simplify the process of verifying 
26.23 	information in applications for the family homelessness prevention and assistance program. 
26.24 	In developing recommendations, the commissioner must consider:
26.25 	(1) allowing self-attestation of emergencies, assets, and income;
26.26 	(2) allowing verbal authorization by applicants to allow emergency rental assistance 
26.27 	administrators to communicate with landlords and utility providers regarding applications 
26.28 	for assistance; and
26.29 	(3) allowing landlords to apply for emergency rental assistance on tenants' behalf.
26.30 	(b) The commissioner must:
26.31 	(1) prepare recommendations by January 1, 2025;
26.32 	(2) adopt any recommendations by July 1, 2025; and
27.1 	(3) provide technical assistance to counties, Tribes, and other emergency rental assistance 
27.2 	administrators to implement these recommendations.
27.3 	(c) By January 13, 2025, the commissioner must report to the chairs and ranking minority 
27.4 	members of the legislative committees with jurisdiction over housing detailing the proposed 
27.5 	recommendations required by this section. By July 7, 2025, the commissioner must report 
27.6 	to the chairs and ranking minority members of the legislative committees with jurisdiction 
27.7 	over housing detailing the recommendations adopted as required by this section.

APPENDIX 

Repealed Minnesota Session Laws: S4158-1 

Laws 2023, chapter 37, article 2, section 13 by Laws 2024, chapter 127, article 14, section 13
Subd. 2.Eligible services. 
The commissioner may award a grant under this section to an organization providing lending funds for the following services: 

(1) new manufactured home financing programs; 

(2) manufactured home down payment assistance; or 

(3) manufactured home repair, renovation, removal, and site preparation financing programs. 

Subd. 3.Eligible organization. 
To be eligible for a grant under this section, a nonprofit organization must: 

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

(2) have primary operations located in Minnesota; 

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

(4) serve low-income populations in manufactured home communities owned by residents, cooperatives, nonprofits, or municipalities. 

Subd. 4.Commissioner duties. 
The commissioner shall develop the forms, applications, and reporting requirements for use by eligible organizations. In developing these materials, the commissioner shall consult with manufactured housing cooperatives, resident-owned manufactured home communities, and nonprofit organizations working with manufactured housing cooperatives and resident-owned communities.  

Subd. 5.Loan payments and interest. 
Interest earned and repayments of principal from loans issued under this section must be used for the purposes of this section.