HF 1141

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 04/20/2026 01:26 p.m.

A bill for an act
relating to housing; establishing a supplemental budget for the Minnesota Housing
Finance Agency; authorizing the issuance of housing infrastructure bonds;
modifying the authority of the Minnesota Housing Finance Agency over the housing
development fund; requiring reports; transferring money; appropriating money;
amending Minnesota Statutes 2024, sections 462A.05, subdivision 8; 462A.20,
subdivisions 3, 4, by adding a subdivision; 462A.21, subdivisions 10, 12a; 462A.37,
by adding a subdivision; Minnesota Statutes 2025 Supplement, section 462A.37,
subdivision 5; Laws 2025, chapter 32, article 1, section 2, subdivisions 1, 3, 15,
by adding a subdivision; proposing coding for new law in Minnesota Statutes,
chapter 462A; repealing Minnesota Statutes 2024, section 462A.21, subdivision
5.

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

ARTICLE 1

HOUSING APPROPRIATIONS

Section 1.

Laws 2025, chapter 32, article 1, section 2, subdivision 1, is amended to read:

Subdivision 1. Total Appropriation

$

101,148,000

$

deleted text begin 82,798,000 deleted text end new text begin 103,098,000 new text end

(a) The amounts that may be spent for each
purpose are specified in the following
subdivisions.

(b) Unless otherwise specified, the
appropriations for the programs in this section
are appropriated and made available for the
purposes of the housing development fund.
Except as otherwise indicated, the amounts
appropriated are part of the agency's
permanent budget base.

Sec. 2.

Laws 2025, chapter 32, article 1, section 2, subdivision 3, is amended to read:

Subd. 3. Workforce Housing Development

2,000,000

deleted text begin 2,000,000 deleted text end new text begin 22,000,000 new text end

new text begin (a) new text end This appropriation is for the greater
Minnesota workforce housing development
program under Minnesota Statutes, section
462A.39. If requested by the applicant and
approved by the agency, funded properties
may include a portion of income- and
rent-restricted units. Funded properties may
include owner-occupied homes.

new text begin (b) The base for this program in fiscal year
2028 and beyond is $2,000,000.
new text end

Sec. 3.

Laws 2025, chapter 32, article 1, section 2, subdivision 15, is amended to read:

Subd. 15. Homeownership Education, Counseling, and Training

857,000

deleted text begin 857,000 deleted text end new text begin 1,007,000 new text end

new text begin (a) new text end This appropriation is for the
homeownership education, counseling, and
training program under Minnesota Statutes,
section 462A.209.

new text begin (b) The base for this program in fiscal year
2028 and beyond is $857,000.
new text end

Sec. 4.

Laws 2025, chapter 32, article 1, section 2, is amended by adding a subdivision to
read:

new text begin Subd. 21. new text end new text begin Minnesota Nice HomeShare new text end

new text begin -0- new text end

new text begin 150,000 new text end

new text begin (a) This appropriation is for the Minnesota
Nice HomeShare pilot program. This is a
onetime appropriation.
new text end

new text begin (b) The commissioner of the Minnesota
Housing Finance Agency must establish and
administer the Minnesota Nice HomeShare
pilot program to award a grant under this
section. The commissioner shall award a grant
for assisting seniors in the counties of Lake,
St. Louis, and Washington to reduce living
expenses by matching seniors who own homes
with spare rooms to adults in need of
affordable housing. For the purposes of this
section, "senior" means a person 55 years of
age or older. The commissioner may partner
with the Arrowhead Area Agency on Aging
or organizations that advocate for seniors to
promote the program.
new text end

new text begin (c) A grantee must:
new text end

new text begin (1) assist hosts and renters over the telephone,
through a text chat function or by video;
new text end

new text begin (2) collect and process rental payments from
renters and distribute payments to hosts in a
timely manner;
new text end

new text begin (3) protect the private information and data of
hosts and renters;
new text end

new text begin (4) conduct background checks on hosts and
renters, including contacting at least two
references for each host and renter;
new text end

new text begin (5) acquire from renters employment
verification or proof of school enrollment; and
new text end

new text begin (6) review and process all applications.
new text end

Sec. 5. new text begin RETURN OF UNUSED TAX-FORFEITED SETTLEMENT
APPROPRIATION; CANCELLATION; APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Return of funds. new text end

new text begin Notwithstanding Laws 2024, chapter 113, section 1,
subdivision 5, on June 29, 2026, the claims administrator appointed under Laws 2024,
chapter 113, to settle litigation related to the state's retention of tax-forfeited lands, surplus
proceeds from the sale of tax-forfeited lands, and mineral rights in those lands, must return
to the commissioner of management and budget the amount of the appropriation under Laws
2024, chapter 113, section 1, subdivision 5, that is not needed to settle claims under Laws
2024, chapter 113.
new text end

new text begin Subd. 2. new text end

new text begin Cancellation. new text end

new text begin The commissioner of management and budget must cancel the
amount received under subdivision 1 to the general fund within one day of the receipt of
the funds.
new text end

new text begin Subd. 3. new text end

new text begin Appropriation. new text end

new text begin The amount canceled under subdivision 2 is appropriated in
fiscal year 2027 to the commissioner of the Minnesota Housing Finance Agency for the
family homeless prevention and assistance program under Minnesota Statutes, section
462A.204. This appropriation is onetime and is made available for the purposes of the
housing development fund. Notwithstanding procurement provisions outlined in Minnesota
Statutes, section 16C.06, subdivisions 1, 2, and 6, the agency may award grants to existing
program grantees.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6. new text begin TRANSFER.
new text end

new text begin On June 29, 2026, the commissioner of management and budget must transfer
$22,300,000 to the general fund from the housing development fund from the aggregated
earnings from investments of state appropriations made pursuant to Minnesota Statutes,
section 462A.20, subdivision 3. This is a onetime transfer.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 2

HOUSING INFRASTRUCTURE BONDS

Section 1.

Minnesota Statutes 2024, section 462A.37, is amended by adding a subdivision
to read:

new text begin Subd. 2l. new text end

new text begin Additional authorization. new text end

new text begin In addition to the amount authorized in subdivisions
2 to 2k and 3a, the agency may issue up to $100,000,000 in one or more series to which the
payments under this section may be pledged.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2025 Supplement, section 462A.37, subdivision 5, is amended
to read:

Subd. 5.

Additional appropriation.

(a) The agency must certify annually to the
commissioner of management and budget the actual amount of annual debt service on each
series of bonds issued under this section.

(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure
bonds issued under subdivision 2a, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a), not to exceed $6,400,000 annually. The amounts
necessary to make the transfers are appropriated from the general fund to the commissioner
of management and budget.

(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure
bonds issued under subdivision 2b, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a), not to exceed $800,000 annually. The amounts
necessary to make the transfers are appropriated from the general fund to the commissioner
of management and budget.

(d) Each July 15, beginning in 2019 and through 2040, if any housing infrastructure
bonds issued under subdivision 2c, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a), not to exceed $2,800,000 annually. The amounts
necessary to make the transfers are appropriated from the general fund to the commissioner
of management and budget.

(e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure
bonds issued under subdivision 2d, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(f) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure
bonds issued under subdivision 2e, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(g) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure
bonds issued under subdivision 2f, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(h) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure
bonds issued under subdivision 2g, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(i) Each July 15, beginning in 2023 and through 2044, if any housing infrastructure
bonds issued under subdivision 2h, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(j) Each July 15, beginning in 2026 and through 2047, if any housing infrastructure
bonds issued under subdivision 2j, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(k) Each July 15, beginning in 2027 and through 2048, if any housing infrastructure
bonds issued under subdivision 2k, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(l) new text begin Each July 15, beginning in 2028 and through 2049, if any housing infrastructure
bonds issued under subdivision 2l or housing infrastructure bonds issued to refund those
bonds remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.
new text end

new text begin (m) new text end The agency may pledge to the payment of the housing infrastructure bonds the
payments to be made by the state under this section.

ARTICLE 3

HOUSING POLICY

Section 1.

Minnesota Statutes 2024, section 462A.05, subdivision 8, is amended to read:

Subd. 8.

Service charges.

new text begin (a) new text end It may collect reasonable interest, fees, and charges in
connection with making and servicing its loans, notes, bonds, obligations, commitments
and other evidences of indebtedness, and in connection with providing technical, consultative
and project assistance services. Such interest, fees and charges shall be limited to the amounts
required to pay the costs of the agency, including operating and administrative expenses,
and reasonable allowances for losses which may be incurred.

new text begin (b) Notwithstanding section 16B.98, subdivision 14, or any other law to the contrary,
the agency may not retain any portion of any amount appropriated to the agency, unless the
aggregated earnings from investments of state appropriations are insufficient to pay the
costs and expenses necessary and incidental to the development and operation of programs
funded by state appropriations. Retentions from state appropriations may not exceed the
amount by which the costs and expenses necessary and incidental to the development and
operation of state programs exceed the aggregated earnings from investments of state
appropriations. Prior to retaining any portion of an appropriation to the agency, the agency
must notify the chairs and ranking minority members of the legislative committees having
jurisdiction over housing finance and policy.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2024, section 462A.20, subdivision 3, is amended to read:

Subd. 3.

Separate accounts; transfers; limits.

Whenever any money is appropriated
by the state to the agency solely for a specified purpose or purposes, the agency shall establish
a separate bookkeeping account or accounts in the housing development fund to record the
receipt and disbursement of such money and of the income, gain, and loss from the
investment and reinvestment thereof. Earnings from investment of any amounts appropriated
by the state to the agency for a specified purpose or purposes may be aggregated. The costs
and expenses necessary and incidental to the development and operation of all programs
funded by state appropriations may be paid from the aggregated earnings from investments
deleted text begin prior to periodic distributions of earnings to separate accounts to be used for the same
purpose as the respective original appropriation deleted text end . new text begin The agency must annually distribute earnings
as provided in subdivision 5. new text end The agency may transfer unencumbered balances from one
appropriated account to another, provided that no money appropriated for the purpose of
agency loan programs may be transferred to an account to be used for making grants, except
that money appropriated for the purpose of section 462A.05, subdivision 14a, may be
transferred for the purpose of section 462A.05, subdivision 15a. new text begin Prior to transferring balances
from one appropriated account to another, the agency must notify the chairs and ranking
minority members of the legislative committees having jurisdiction over housing finance
and policy.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2024, section 462A.20, subdivision 4, is amended to read:

Subd. 4.

deleted text begin Operating costs deleted text end new text begin Housing development fund new text end report.

new text begin (a) new text end On or before February
15 of each year, the agency shall deliver a report to the chairs of the finance and
appropriations committees of the legislature on the costs of operating the agency in the
previous fiscal year. The report shall include the expenditures for salaries and benefits, rent,
professional and technical services, general agency administration, and agency's audited
financial statements which include information on expenditures and receipts relating to debt
issuance and administration and loan origination and administration. new text begin The report must detail
which operating costs and expenditures are attributable to the development and operation
of programs funded by state appropriations, with a breakdown of costs and expenditures
by program. new text end The report shall include a budget plan for salaries and benefits, rent, professional
and technical services, and general administration for the current fiscal year, including
estimates of changes in costs from the previous fiscal year. If it appears that the costs in the
current fiscal year will exceed the budget plan contained in the report submitted under this
subdivision, the agency must notify the chairs of the legislative committees or divisions
with jurisdiction over the agency's budget that the costs in the current fiscal year will exceed
the submitted budget plan and the reasons for the changes in costs and must submit a revised
budget plan to the commissioner of management and budget and obtain the commissioner's
concurrence with the revised plan. The agency must also notify the chairs of the legislative
committees or divisions with jurisdiction over the agency's budget when the agency is
considering an expansion of agency activities that deleted text begin were deleted text end new text begin was new text end not contemplated in the submitted
budget plan.

new text begin (b) The report under this subdivision must additionally provide:
new text end

new text begin (1) the amount in the housing development fund as of January 1 of the year the report
is to be submitted;
new text end

new text begin (2) the amount of aggregated earnings from investments of state appropriations as of
January 1 of the year the report is to be submitted;
new text end

new text begin (3) the amounts used pursuant to subdivision 5 in the prior calendar year and the programs
for which each amount was originally appropriated and through which each amount was
used;
new text end

new text begin (4) the amounts of, and reasons for, any transfers made pursuant to subdivision 3 or to
section 462A.21, subdivision 12a, in the prior calendar year;
new text end

new text begin (5) the amounts and details of any grants, loans, expenditures, or payments made out of
the housing development fund pursuant to section 462A.21 in the prior calendar year;
new text end

new text begin (6) the amounts of any administrative retentions from state appropriations in the prior
calendar year;
new text end

new text begin (7) the unencumbered balance in the housing development fund as of January 1 of the
year the report is to be submitted;
new text end

new text begin (8) the amount of fees and charges appropriated to the agency pursuant to subdivision
2, clause (4), in the prior calendar year; and
new text end

new text begin (9) the amount, as of January 1 of the year the report is to be submitted, of the
unencumbered balance that was appropriated prior to the current fiscal year, including
citations to the laws making the original appropriations and explanations why the amounts
remain unencumbered.
new text end

Sec. 4.

Minnesota Statutes 2024, section 462A.20, is amended by adding a subdivision to
read:

new text begin Subd. 5. new text end

new text begin Expenditure of earnings from investments of state appropriations
required. new text end

new text begin Each year on June 30, the commissioner must determine the difference between:
(1) the amount of aggregated earnings from investments of state appropriations in the housing
development fund; and (2) the amount that the agency paid itself, pursuant to subdivision
3, for the costs and expenses necessary and incidental to the development and operation of
programs funded by state appropriations since July 1 of the preceding year. In each fiscal
year beginning with fiscal year 2027, the commissioner must expend the difference
determined in the preceding sentence in the preceding fiscal year, in the manner provided
in this subdivision. The commissioner must use earnings from investments for the same
purpose as the respective original appropriation, except that, if in a given fiscal year it is
impracticable to undertake the solicitation process under section 16C.06 for the same purpose
for which an original appropriation was made, the commissioner may use the earnings from
investments of that appropriation for an agency purpose under section 462A.21 or under
another program receiving state appropriations that is consistent with legislative intent and
comparable to the purpose for which the original appropriation was made.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2024, section 462A.21, subdivision 10, is amended to read:

Subd. 10.

Certain appropriations available until expended.

Notwithstanding the
repeal of section 462A.26 and the provisions of section 16A.28 or any other law relating to
lapse of an appropriation, the appropriations made to the agency by the legislature in 1976
and subsequent years are available until fully expended, and the allocations provided in the
appropriations remain in effect. deleted text begin Earnings from investments of any of the amounts
appropriated to the agency are appropriated to the agency to be used for the same purposes
as the respective original appropriations, after payment of the costs and expenses necessary
and incidental to the development and operation of the programs authorized under this
chapter.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2024, section 462A.21, subdivision 12a, is amended to read:

Subd. 12a.

Program money transfer.

Unencumbered balances of money appropriated
for the purpose of loans or grants for agency programs under these subdivisions may be
transferred between programs created by these subdivisions or in accordance with section
462A.20, subdivision 3. new text begin Prior to making a transfer pursuant to this subdivision, the agency
must notify the chairs and ranking minority members of the legislative committees having
jurisdiction over housing finance and policy.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

new text begin [462A.45] LIVED-EXPERIENCE ENGAGEMENT EXEMPTION.
new text end

new text begin (a) Notwithstanding any law to the contrary, income received from lived-experience
engagement is not considered income, assets, or personal property for purposes of
determining eligibility or recertifying eligibility for state public assistance, including but
not limited to:
new text end

new text begin (1) child care assistance programs under chapter 142E;
new text end

new text begin (2) general assistance, Minnesota supplemental aid, and food support under chapters
142F and 256D;
new text end

new text begin (3) housing support under chapter 256I;
new text end

new text begin (4) Minnesota family investment program under chapter 142G; and
new text end

new text begin (5) economic assistance programs under chapter 256P.
new text end

new text begin (b) For purposes of this section, "lived-experience engagement" means the agency
engaging with people with relevant experience identified by the agency for the purposes of
(1) serving as a community reviewer of proposals submitted as part of an agency request
for proposals, or (2) gathering and sharing feedback on the impact of housing programs.
new text end

Sec. 8. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2024, section 462A.21, subdivision 5, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: H1141-1

462A.21 HOUSING DEVELOPMENT FUND; ADVANCES, USE REPAYMENT.

Subd. 5.

Other agency purposes.

It may expend moneys in the fund, not otherwise appropriated, for such other agency purposes as previously enumerated in this chapter as the agency in its discretion shall determine and provide.