1.1 	A bill for an act
1.2 	relating to housing; establishing supplemental budget for the Minnesota Housing 
1.3 	Finance Agency; making policy, finance, and technical changes to housing 
1.4 	provisions; authorizing an issuance of housing infrastructure bonds; modifying 
1.5 	agency authority over the housing development fund; authorizing certain investment 
1.6 	authority for housing and redevelopment agencies; modifying certain income 
1.7 	provisions for lived-experience engagement with the agency; modifying agency 
1.8 	meeting requirements; requiring reports; transferring money; appropriating money;
1.9 	amending Minnesota Statutes 2024, sections 118A.09, subdivisions 2, 4, by adding 
1.10 	a subdivision; 462A.041; 462A.05, subdivision 8; 462A.20, subdivisions 2, 3, 4, 
1.11 	by adding a subdivision; 462A.21, subdivisions 10, 12a; 462A.37, by adding a 
1.12 	subdivision; Minnesota Statutes 2025 Supplement, sections 462A.37, subdivision 
1.13 	5; 462A.44, subdivision 3; Laws 2023, chapter 37, article 1, section 2, subdivision 
1.14 	18, as amended; proposing coding for new law in Minnesota Statutes, chapter 
1.15 	462A; repealing Minnesota Statutes 2024, section 462A.21, subdivision 5.
1.16 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.17 	ARTICLE 1
1.18 	HOUSING APPROPRIATIONS

1.19 	Section 1. Laws 2023, chapter 37, article 1, section 2, subdivision 18, as amended by Laws 
1.20 	2024, chapter 127, article 14, section 9, and Laws 2026, chapter 43, section 1, is amended 
1.21 	to read:

1.22	Subd. 18.Supportive Housing
 		10,000,000
		-0-
	
1.23 	(a) This appropriation is for the supportive 
1.24 	housing program under Minnesota Statutes, 
1.25 	section 462A.42. This is a onetime 
1.26 	appropriation.
2.1 	(b) Of this amount, $9,000,000 is for grants 
2.2 	to United States Department of Housing and 
2.3 	Urban Development Continuum of Care 
2.4 	Program grantees for fiscal year 2024 or fiscal 
2.5 	year 2025 whose contracts have expired or 
2.6 	will expire before December 31, 2026 2027, 
2.7 	and have experienced or will experience 
2.8 	funding gaps. The agency may prioritize 
2.9 	awards to grantees based on need. The agency 
2.10 	shall coordinate with local Continuums of 
2.11 	Care to identify grantee prioritization.
2.12 	Notwithstanding the application provisions 
2.13 	outlined in Minnesota Statutes, section 
2.14 	462A.42, subdivision 5, and the procurement 
2.15 	provisions outlined in Minnesota Statutes, 
2.16 	section 16C.06, subdivisions 1, 2, and 6, the 
2.17 	agency may noncompetitively award grants 
2.18 	to existing and previous federal continuum of 
2.19 	care funding recipients. Notwithstanding 
2.20 	Minnesota Statutes, section 462A.42, 
2.21 	subdivision 4, funding may must be used as 
2.22 	supplemental emergency support resources, 
2.23 	which can include matching funds, for 
2.24 	permanent supportive housing, rapid 
2.25 	rehousing, transitional housing, and 
2.26 	system-related activities for the identified 
2.27 	grantees. The agency will coordinate with 
2.28 	stakeholders on a distribution process and 
2.29 	establish such a process within 30 days of 
2.30 	enactment.
2.31 	(c) Beginning 90 days after the agency 
2.32 	obligates the appropriation and every 90 days 
2.33 	thereafter, each grantee shall report to the 
2.34 	commissioner detailing the use of grant money 
2.35 	and the number of people served. The 
2.36 	requirement for a grantee to report to the 
3.1 	commissioner under this paragraph expires 
3.2 	upon submission of a final report to the 
3.3 	commissioner following the exhaustion or 
3.4 	return of grant money. Within ten days after 
3.5 	the reports from each grantee are due, the 
3.6 	commissioner shall compile the reports 
3.7 	required by this paragraph from each grantee. 
3.8 	The compiled report shall also identify any 
3.9 	grantee that has not submitted a report required 
3.10 	by this paragraph to the commissioner. The 
3.11 	commissioner shall submit a copy of each 
3.12 	compiled report to the chairs and ranking 
3.13 	minority members of the legislative 
3.14 	committees with jurisdiction over housing. 
3.15 	The commissioner shall also file each 
3.16 	compiled report with the Legislative Reference 
3.17 	Library in compliance with Minnesota 
3.18 	Statutes, section 3.195.
3.19 	(d) In the event that the amount specified in 
3.20 	paragraph (b) is no longer needed to address 
3.21 	financial needs of existing and previous 
3.22 	federal Continuum of Care funding recipients 
3.23 	as set out in paragraph (b), then remaining 
3.24 	funds may be used by the agency for purposes 
3.25 	set out in paragraph (a).

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

3.27 	Sec. 2. MINNESOTA HOUSING FINANCE AGENCY APPROPRIATIONS.
 3.28 	(a) Notwithstanding Minnesota Statutes, sections 462A.20, subdivision 3, and 462A.21, 
3.29 	subdivision 10, $25,000,000 in fiscal year 2027 is appropriated from the aggregated earnings 
3.30 	from investments of state appropriations made pursuant to Minnesota Statutes, section 
3.31 	462A.20, subdivision 3, in the housing development fund to the commissioner of the 
3.32 	Minnesota Housing Finance Agency for the following purposes:
3.33 	(1) $14,275,000 is for the workforce housing development program under Minnesota 
3.34 	Statutes, section 462A.39;
4.1 	(2) $4,000,000 is for the supportive housing program under Minnesota Statutes, section 
4.2 	462A.42, and must be used for the purposes provided in section 1, paragraph (b), except 
4.3 	that, as provided in section 1, paragraph (d), if this amount is not needed for those purposes, 
4.4 	it may be used for the purposes provided in Minnesota Statutes, section 462A.42;
4.5 	(3) $4,000,000 is for the manufactured home park infrastructure grant and loan program 
4.6 	under Minnesota Statutes, section 462A.2035, subdivision 1b;
4.7 	(4) $2,000,000 is for the family homeless prevention and assistance program under 
4.8 	Minnesota Statutes, section 462A.204, and may be used in the manner provided in section 
4.9 	3, subdivision 3;
4.10 	(5) $425,000 is for the capacity-building grants program under Minnesota Statutes, 
4.11 	section 462A.21, subdivision 3b, for a grant to a statewide tenant education and hotline 
4.12 	service that provides free and confidential legal advice for all Minnesota renters. This amount 
4.13 	may be awarded to existing grantees notwithstanding Minnesota Statutes, section 16C.06, 
4.14 	subdivisions 1, 2, and 6;
4.15 	(6) $150,000 is for the homeownership education, counseling, and training program 
4.16 	under Minnesota Statutes, section 462A.209. This amount may be awarded to existing 
4.17 	grantees notwithstanding Minnesota Statutes, section 16C.06, subdivisions 1, 2, and 6; and
4.18 	(7) $150,000 is for the Minnesota Nice HomeShare pilot program established under 
4.19 	paragraph (b).
4.20 	(b) The commissioner of the Minnesota Housing Finance Agency must award a grant 
4.21 	to St. Louis County for the county to establish and administer the Minnesota Nice HomeShare 
4.22 	pilot program to assist seniors in the counties of Lake, St. Louis, and Washington to reduce 
4.23 	living expenses by matching seniors who own homes with spare rooms to adults in need of 
4.24 	affordable housing. For the purposes of this section, "senior" means a person 55 years of 
4.25 	age or older. St. Louis County may partner with the Arrowhead Area Agency on Aging, 
4.26 	the other named counties in this paragraph, or organizations that advocate for seniors, to 
4.27 	promote the program. The program must:
4.28 	(1) assist hosts and renters over the telephone, through a text chat function or by video;
4.29 	(2) collect and process rental payments from renters and distribute payments to hosts in 
4.30 	a timely manner;
4.31 	(3) protect the private information and data of hosts and renters;
4.32 	(4) conduct background checks on hosts and renters, including contacting at least two 
4.33 	references for each host and renter;
5.1 	(5) acquire from renters employment verification or proof of school enrollment; and
5.2 	(6) review and process all applications.
5.3 	(c) This is a onetime appropriation.

5.4 	Sec. 3. RETURN OF UNUSED TAX-FORFEITED SETTLEMENT 
5.5 	APPROPRIATION; CANCELLATION; APPROPRIATION.
 5.6 		Subdivision 1.Return of money. Notwithstanding Laws 2024, chapter 113, section 1, 
5.7 	subdivision 5, on June 29, 2026, the claims administrator appointed under Laws 2024, 
5.8 	chapter 113, to settle litigation related to the state's retention of tax-forfeited lands, surplus 
5.9 	proceeds from the sale of tax-forfeited lands, and mineral rights in those lands must return 
5.10 	to the commissioner of management and budget the amount of the appropriation under Laws 
5.11 	2024, chapter 113, section 1, subdivision 5, that is not needed to settle claims under Laws 
5.12 	2024, chapter 113.
5.13 		Subd. 2.Cancellation. The commissioner of management and budget must cancel the 
5.14 	amount received under subdivision 1 to the general fund within one day of the receipt of 
5.15 	the money.
5.16 		Subd. 3.Appropriation. The amount canceled under subdivision 2, less $2,000,000, is 
5.17 	appropriated in fiscal year 2027 from the general fund to the commissioner of the Minnesota 
5.18 	Housing Finance Agency for the family homeless prevention and assistance program under 
5.19 	Minnesota Statutes, section 462A.204. This is a onetime appropriation and is made available 
5.20 	for the purposes of the housing development fund. Notwithstanding the procurement 
5.21 	provisions outlined in Minnesota Statutes, section 16C.06, subdivisions 1, 2, and 6, the 
5.22 	agency may award grants to federally recognized Indian Tribes, to existing program grantees, 
5.23 	and to former program grantees. The agency must consider community need, grantee 
5.24 	capacity, and geographic distribution when awarding money. Notwithstanding Minnesota 
5.25 	Statutes, section 16B.97, the agency must use all available methods and schedule of 
5.26 	payments, including advanced payments, to effectuate legislative intent. Money must be 
5.27 	spent by December 31, 2026. The agency may, at its discretion, redistribute unused or 
5.28 	underutilized money among grantees to increase program efficiency and effectiveness.

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

6.1 	ARTICLE 2
6.2 	HOUSING INFRASTRUCTURE BONDS

6.3 	Section 1. Minnesota Statutes 2024, section 462A.37, is amended by adding a subdivision 
6.4 	to read:
6.5 		Subd. 2l.Additional authorization. In addition to the amount authorized in subdivisions 
6.6 	2 to 2k and 3a, the agency may issue up to $100,000,000 in one or more series to which the 
6.7 	payments under this section may be pledged.

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

6.9 	Sec. 2. Minnesota Statutes 2025 Supplement, section 462A.37, subdivision 5, is amended 
6.10 	to read:
6.11 		Subd. 5.Additional appropriation. (a) The agency must certify annually to the 
6.12 	commissioner of management and budget the actual amount of annual debt service on each 
6.13 	series of bonds issued under this section.
6.14 	(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure 
6.15 	bonds issued under subdivision 2a, or housing infrastructure bonds issued to refund those 
6.16 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
6.17 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
6.18 	the amount certified under paragraph (a), not to exceed $6,400,000 annually. The amounts 
6.19 	necessary to make the transfers are appropriated from the general fund to the commissioner 
6.20 	of management and budget.
6.21 	(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure 
6.22 	bonds issued under subdivision 2b, or housing infrastructure bonds issued to refund those 
6.23 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
6.24 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
6.25 	the amount certified under paragraph (a), not to exceed $800,000 annually. The amounts 
6.26 	necessary to make the transfers are appropriated from the general fund to the commissioner 
6.27 	of management and budget.
6.28 	(d) Each July 15, beginning in 2019 and through 2040, if any housing infrastructure 
6.29 	bonds issued under subdivision 2c, or housing infrastructure bonds issued to refund those 
6.30 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
6.31 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
6.32 	the amount certified under paragraph (a), not to exceed $2,800,000 annually. The amounts 
7.1 	necessary to make the transfers are appropriated from the general fund to the commissioner 
7.2 	of management and budget.
7.3 	(e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure 
7.4 	bonds issued under subdivision 2d, or housing infrastructure bonds issued to refund those 
7.5 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
7.6 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
7.7 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
7.8 	appropriated from the general fund to the commissioner of management and budget.
7.9 	(f) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure 
7.10 	bonds issued under subdivision 2e, or housing infrastructure bonds issued to refund those 
7.11 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
7.12 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
7.13 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
7.14 	appropriated from the general fund to the commissioner of management and budget.
7.15 	(g) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure 
7.16 	bonds issued under subdivision 2f, or housing infrastructure bonds issued to refund those 
7.17 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
7.18 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
7.19 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
7.20 	appropriated from the general fund to the commissioner of management and budget.
7.21 	(h) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure 
7.22 	bonds issued under subdivision 2g, or housing infrastructure bonds issued to refund those 
7.23 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
7.24 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
7.25 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
7.26 	appropriated from the general fund to the commissioner of management and budget.
7.27 	(i) Each July 15, beginning in 2023 and through 2044, if any housing infrastructure 
7.28 	bonds issued under subdivision 2h, or housing infrastructure bonds issued to refund those 
7.29 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
7.30 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
7.31 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
7.32 	appropriated from the general fund to the commissioner of management and budget.
7.33 	(j) Each July 15, beginning in 2026 and through 2047, if any housing infrastructure 
7.34 	bonds issued under subdivision 2j, or housing infrastructure bonds issued to refund those 
8.1 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
8.2 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
8.3 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
8.4 	appropriated from the general fund to the commissioner of management and budget.
8.5 	(k) Each July 15, beginning in 2027 and through 2048, if any housing infrastructure 
8.6 	bonds issued under subdivision 2k, or housing infrastructure bonds issued to refund those 
8.7 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
8.8 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
8.9 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
8.10 	appropriated from the general fund to the commissioner of management and budget.
8.11 	(l) Each July 15, beginning in 2028 and through 2049, if any housing infrastructure 
8.12 	bonds issued under subdivision 2l or housing infrastructure bonds issued to refund those 
8.13 	bonds remain outstanding, the commissioner of management and budget must transfer to 
8.14 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
8.15 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
8.16 	appropriated from the general fund to the commissioner of management and budget.
8.17 	(m) The agency may pledge to the payment of the housing infrastructure bonds the 
8.18 	payments to be made by the state under this section.

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

8.20 	ARTICLE 3
8.21 	HOUSING POLICY

8.22 	Section 1. Minnesota Statutes 2024, section 118A.09, subdivision 2, is amended to read:
8.23 		Subd. 2.Additional investment authority. Qualifying governments may invest the 
8.24 	amount described in subdivision 3:
8.25 	(1) in index mutual funds based in the United States and indexed to a broad market 
8.26 	United States equity index, on the condition that index mutual fund investments must be 
8.27 	made directly with the main sales office of the fund; or
8.28 	(2) in shares of a company that:
8.29 	(i) is registered with the United States Securities and Exchange Commission;
8.30 	(ii) concentrates in investment grade fixed income securities;
9.1 	(iii) holds, at the time of purchase, at least 80 percent of its investments in federally 
9.2 	insured or guaranteed securities, including by government sponsored entities; and
9.3 	(iv) has a mission, in part, to provide direct investment in local multifamily housing 
9.4 	development; or
9.5 	(3) with the Minnesota State Board of Investment subject to such terms and minimum 
9.6 	amounts as may be adopted by the board.

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

9.8 	Sec. 2. Minnesota Statutes 2024, section 118A.09, is amended by adding a subdivision to 
9.9 	read:
9.10 		Subd. 3a.Housing and redevelopment authorities; investment authority. A housing 
9.11 	and redevelopment authority created in a county or statutory or home rule charter city that 
9.12 	meets the criteria of subdivision 1, paragraph (a), clause (1) or (2), may invest its funds in 
9.13 	investments that meet the criteria of subdivision 2, clause (2), subject to the limitations and 
9.14 	requirements for qualifying governments under subdivisions 3 and 4.

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

9.16 	Sec. 3. Minnesota Statutes 2024, section 118A.09, subdivision 4, is amended to read:
9.17 		Subd. 4.Approval. Before investing pursuant to this section, the governing body of the 
9.18 	qualifying government must adopt a resolution or investment policy that includes the 
9.19 	following statements:
9.20 	(1) the governing body understands that investments under subdivision 2 have a risk of 
9.21 	loss;
9.22 	(2) the governing body understands the type of funds that are being invested and the 
9.23 	specific investment itself; and
9.24 	(3) the governing body certifies that all funds designated for investment through the 
9.25 	State Board of Investment meet the requirements of this section and the policies and 
9.26 	procedures established by the State Board of Investment.

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

10.1 	Sec. 4. Minnesota Statutes 2024, section 462A.041, is amended to read:
10.2 	462A.041 MEETINGS BY TELEPHONE OR OTHER ELECTRONIC MEANS
10.3 	INTERACTIVE TECHNOLOGY.
10.4 	(a) For the purposes of this section, "interactive technology" has the meaning in section 
10.5 	13D.001, subdivision 2.
10.6 	(a) Notwithstanding sections 13D.01 and 13D.02, (b) The Housing Finance Agency may 
10.7 	conduct a meeting of its members by telephone or other electronic means interactive 
10.8 	technology so long as the following conditions are met:
10.9 	(1) all members of the agency participating in the meeting, wherever their physical 
10.10 	location, can hear one another and can hear all discussion and testimony;
10.11 	(2) members of the public present at the regular meeting location of the agency can hear 
10.12 	all discussion and testimony and all votes of members of the agency;
10.13 	(3) at least one member of the agency, the commissioner, the deputy commissioner, or 
10.14 	an attorney for the agency is physically present at the regular meeting location; and
10.15 	(4) all votes are conducted by roll call, so each member's vote on each issue can be 
10.16 	identified and recorded.
10.17 	(b) (c) Each member of the agency participating in a meeting by electronic means
10.18 	interactive technology is considered present at the meeting for purposes of determining a 
10.19 	quorum and participating in all proceedings.
10.20 	(c) (d) If telephone or another electronic means interactive technology is used to conduct 
10.21 	a meeting, the agency to the extent practical, shall allow a person to monitor the meeting 
10.22 	electronically from a remote location. The agency may require the person making such a 
10.23 	connection to pay for documented marginal costs that the agency incurs as a result of the 
10.24 	additional connection. Meetings must be made available on a website for live video streaming 
10.25 	and be archived on a website for playback at a later time.
10.26 	(d) (e) If telephone or another electronic means interactive technology is used to conduct 
10.27 	a regular, special, or emergency meeting, the agency shall provide notice of the regular 
10.28 	meeting location, of the fact that some members may participate by electronic means
10.29 	interactive technology, and of the provisions of paragraph (c) (d). The timing and method 
10.30 	of providing notice is governed by section 13D.04.

10.31 	EFFECTIVE DATE. This section is effective August 1, 2026.

11.1 	Sec. 5. Minnesota Statutes 2024, section 462A.05, subdivision 8, is amended to read:
11.2 		Subd. 8.Service charges. (a) It may collect reasonable interest, fees, and charges in 
11.3 	connection with making and servicing its loans, notes, bonds, obligations, commitments 
11.4 	and other evidences of indebtedness, and in connection with providing technical, consultative 
11.5 	and project assistance services. Such interest, fees and charges shall be limited to the amounts 
11.6 	required to pay the costs of the agency, including operating and administrative expenses, 
11.7 	and reasonable allowances for losses which may be incurred.
11.8 	(b) Notwithstanding section 16B.98, subdivision 14, or any other law to the contrary, 
11.9 	the agency may not retain any portion of any amount appropriated to the agency, unless the 
11.10 	aggregated earnings from investments of state appropriations are insufficient to pay the 
11.11 	costs and expenses necessary and incidental to the development and operation of programs 
11.12 	funded by state appropriations. Retentions from state appropriations may not exceed the 
11.13 	amount by which the costs and expenses necessary and incidental to the development and 
11.14 	operation of state programs exceed the aggregated earnings from investments of state 
11.15 	appropriations. Prior to retaining any portion of an appropriation to the agency, the agency 
11.16 	must notify the chairs and ranking minority members of the legislative committees having 
11.17 	jurisdiction over housing finance and policy. This paragraph expires June 30, 2028.

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

11.19 	Sec. 6. Minnesota Statutes 2024, section 462A.20, subdivision 2, is amended to read:
11.20 		Subd. 2.Which money in fund. (a) There shall be paid into the housing development 
11.21 	fund:
11.22 	(1) any moneys appropriated and made available by the state for the purposes of the 
11.23 	fund;
11.24 	(2) any moneys transferred into and made available by the state for the purposes of the 
11.25 	fund;
11.26 	(2) (3) any moneys which the agency receives in repayment of advances made from the 
11.27 	fund;
11.28 	(3) (4) any other moneys which may be made available to the agency for the purpose of 
11.29 	the fund from any other source or sources;
11.30 	(4) (5) all fees and charges collected by the agency;
11.31 	(5) (6) all interest or other income not required by the provisions of a resolution or 
11.32 	indenture securing notes or bonds to be paid into another special fund.
12.1 	(b) Money in the housing development fund may be used only for the purposes of the 
12.2 	housing development fund and may not be transferred from the fund for other purposes.

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

12.4 	Sec. 7. Minnesota Statutes 2024, section 462A.20, subdivision 3, is amended to read:
12.5 		Subd. 3.Separate accounts; transfers; limits. Whenever any money is appropriated 
12.6 	by the state to the agency solely for a specified purpose or purposes, the agency shall establish 
12.7 	a separate bookkeeping account or accounts in the housing development fund to record the 
12.8 	receipt and disbursement of such money and of the income, gain, and loss from the 
12.9 	investment and reinvestment thereof. Earnings from investment of any amounts appropriated 
12.10 	by the state to the agency for a specified purpose or purposes may be aggregated. The costs 
12.11 	and expenses necessary and incidental to the development and operation of all programs 
12.12 	funded by state appropriations may be paid from the aggregated earnings from investments 
12.13 	prior to periodic distributions of earnings to separate accounts to be used for the same 
12.14 	purpose as the respective original appropriation. The agency must distribute earnings as 
12.15 	provided in subdivision 5. The agency may transfer unencumbered balances from one 
12.16 	appropriated account to another, provided that no money appropriated for the purpose of 
12.17 	agency loan programs may be transferred to an account to be used for making grants, except 
12.18 	that money appropriated for the purpose of section 462A.05, subdivision 14a, may be 
12.19 	transferred for the purpose of section 462A.05, subdivision 15a. The commissioner must 
12.20 	inform the chairs and ranking minority members of the legislative committees with 
12.21 	jurisdiction over housing finance and policy in writing prior to making a transfer pursuant 
12.22 	to this subdivision. The written notice must include how much money will be transferred, 
12.23 	why the transfer will be made, and when the transfer will occur. The written notice must 
12.24 	also be filed with the Legislative Reference Library in compliance with section 3.195.

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

12.26 	Sec. 8. Minnesota Statutes 2024, section 462A.20, subdivision 4, is amended to read:
12.27 		Subd. 4.Operating costs Report. (a) On or before February 15 of each year, the agency 
12.28 	shall deliver must submit a report to the chairs of the finance and appropriations committees 
12.29 	of the legislature and ranking minority members of the legislative committees having 
12.30 	jurisdiction over housing finance and policy, ways and means, and finance on the costs of 
12.31 	operating the agency in the previous fiscal year. The report shall include must differentiate 
12.32 	between costs to administer programs funded by state appropriations and other agency 
12.33 	activities. For both types of costs, the report must include the following: (1) the expenditures 
13.1 	for salaries and benefits, rent, professional and technical services, and general agency 
13.2 	administration,; (2) the number of full-time equivalent staff positions; and (3) the agency's 
13.3 	audited financial statements which include information on expenditures and receipts relating 
13.4 	to debt issuance and administration and loan origination and administration. The report shall
13.5 	must also include a budget plan for operating costs that differentiates between the costs to 
13.6 	administer programs funded by state appropriations and other agency activities. For both 
13.7 	types of costs, the report must include projected costs for salaries and benefits, rent, 
13.8 	professional and technical services, and general administration for the current fiscal year, 
13.9 	including estimates of changes in costs from the previous fiscal year. If it appears that the 
13.10 	costs in the current fiscal year will exceed the budget plan contained in the report submitted 
13.11 	under this subdivision, the agency must notify the chairs and ranking minority members of 
13.12 	the legislative committees or divisions with jurisdiction over the agency's budget housing 
13.13 	finance and policy that the costs in the current fiscal year will exceed the submitted budget 
13.14 	plan and the reasons for the changes in costs and must submit a revised budget plan to the 
13.15 	commissioner of management and budget and obtain the commissioner's concurrence with 
13.16 	the revised plan. The agency must also notify the chairs and ranking minority members of 
13.17 	the legislative committees or divisions with jurisdiction over the agency's budget housing 
13.18 	finance and policy when the agency is considering an expansion of agency activities that 
13.19 	were was not contemplated in the submitted budget plan.
13.20 	(b) The report under this subdivision must additionally provide:
13.21 	(1) the amount of aggregated earnings from investments of state appropriations as of 
13.22 	January 1 of the year the report is to be submitted;
13.23 	(2) the amounts used pursuant to subdivision 5 in the prior calendar year and the programs 
13.24 	for which each amount was originally appropriated and through which each amount was 
13.25 	used;
13.26 	(3) the amounts of any administrative retentions from state appropriations in the prior 
13.27 	calendar year;
13.28 	(4) the amount, as of January 1 of the year the report is to be submitted, of the 
13.29 	unencumbered balance that was appropriated prior to the current fiscal year, including 
13.30 	citations to the laws making the original appropriations and explanations why the amounts 
13.31 	remain unencumbered; and
13.32 	(5) the amount that the agency projected pursuant to subdivision 5, paragraph (a), clause 
13.33 	(2), in its most recent calculation pursuant to that subdivision, along with information on 
13.34 	the assumptions used in creating those projections.

14.1 	Sec. 9. Minnesota Statutes 2024, section 462A.20, is amended by adding a subdivision to 
14.2 	read:
14.3 		Subd. 5.Use of earnings from investments of state appropriations required. (a) By 
14.4 	September 1 each odd-numbered year, the agency must determine the difference between: 
14.5 	(1) the amount as of June 30 of that year of aggregated earnings from investments of state 
14.6 	appropriations in the housing development fund; and (2) the amount that the agency projects 
14.7 	that it will incur in costs and expenses necessary and incidental to the development and 
14.8 	operation of programs funded by state appropriations in the fiscal year beginning that July 
14.9 	1 and in the following fiscal year.
14.10 	(b) Each biennium the commissioner must use 25 percent of the difference determined 
14.11 	in paragraph (a), in the manner provided in this subdivision. Before December 31 of the 
14.12 	even-numbered year in each biennium, the agency must encumber the amount to be used 
14.13 	under this subdivision, or the agency must provide public notice of the solicitations through 
14.14 	which the amount will be awarded. Earnings must be used for purposes that are comparable 
14.15 	to the purposes of the respective original appropriations and consistent with legislative 
14.16 	intent.
14.17 	(c) Use of aggregated earnings from investment of state appropriations is not required 
14.18 	under this subdivision if, when completing the calculation under paragraph (a), the amount 
14.19 	in paragraph (a), clause (2), exceeds the amount in paragraph (a), clause (1).
14.20 	(d) The agency must consult with the commissioner of management and budget when 
14.21 	projecting its costs pursuant to paragraph (a), clause (2).

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

14.23 	Sec. 10. Minnesota Statutes 2024, section 462A.21, subdivision 10, is amended to read:
14.24 		Subd. 10.Certain appropriations available until expended. Notwithstanding the 
14.25 	repeal of section 462A.26 and the provisions of section 16A.28 or any other law relating to 
14.26 	lapse of an appropriation, the appropriations made to the agency by the legislature in 1976 
14.27 	and subsequent years are available until fully expended, and the allocations provided in the 
14.28 	appropriations remain in effect. Earnings from investments of any of the amounts 
14.29 	appropriated to the agency are appropriated to the agency to be used for the same purposes 
14.30 	as the respective original appropriations or for the purposes provided in section 462A.20, 
14.31 	subdivision 5, after payment of the costs and expenses necessary and incidental to the 
14.32 	development and operation of the programs authorized under this chapter all programs 
14.33 	funded by state appropriations.

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

15.2 	Sec. 11. Minnesota Statutes 2024, section 462A.21, subdivision 12a, is amended to read:
15.3 		Subd. 12a.Program money transfer. Unencumbered balances of money appropriated 
15.4 	for the purpose of loans or grants for agency programs under these subdivisions may be 
15.5 	transferred between programs created by these subdivisions or in accordance with section 
15.6 	462A.20, subdivision 3. The commissioner must inform the chairs and ranking minority 
15.7 	members of the legislative committees with jurisdiction over housing finance and policy in 
15.8 	writing prior to making a transfer pursuant to this subdivision. The written notice must 
15.9 	include how much money will be transferred, why the transfer will be made, and when the 
15.10 	transfer will occur. The written notice must also be filed with the Legislative Reference 
15.11 	Library in compliance with section 3.195.

15.12 	Sec. 12. Minnesota Statutes 2025 Supplement, section 462A.44, subdivision 3, is amended 
15.13 	to read:
15.14 		Subd. 3.Eligible recipient. (a) A city, as defined in section 462C.02, subdivision 6, or 
15.15 	a county is eligible to apply for and receive a grant from either account established in 
15.16 	subdivision 2 the bond proceeds fund or a loan from the local public housing development 
15.17 	fund.
15.18 	(b) A federally recognized American Indian Tribe or a Tribally designated housing entity 
15.19 	is eligible to apply for and receive a loan from the local public housing program account in 
15.20 	the housing development fund.

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

15.22 	Sec. 13. [462A.45] LIVED-EXPERIENCE ENGAGEMENT EXEMPTION.
15.23 	(a) Notwithstanding any law to the contrary, income received from lived-experience 
15.24 	engagement is not considered income, assets, or personal property for purposes of 
15.25 	determining eligibility or recertifying eligibility for state public assistance, including but 
15.26 	not limited to:
15.27 	(1) child care assistance programs under chapter 142E;
15.28 	(2) general assistance, Minnesota supplemental aid, and food support under chapters 
15.29 	142F and 256D;
15.30 	(3) housing support under chapter 256I;
15.31 	(4) Minnesota family investment program under chapter 142G; and
16.1 	(5) economic assistance programs under chapter 256P.
16.2 	(b) For purposes of this section, "lived-experience engagement" means the agency 
16.3 	engaging with people with relevant experience identified by the agency for the purposes of 
16.4 	(1) serving as a community reviewer of proposals submitted as part of an agency request 
16.5 	for proposals, or (2) gathering and sharing feedback on the impact of housing programs.

16.6 	Sec. 14. LEGISLATIVE FISCAL STAFF ACCESS TO ACCOUNTING 
16.7 	SUBSYSTEM.
 16.8 	By February 15, 2027, the commissioner of the Minnesota Housing Finance Agency 
16.9 	must report to the chairs and ranking minority members of the legislative committees with 
16.10 	jurisdiction over housing finance and policy on how the agency will provide legislative 
16.11 	fiscal staff with remote access to the agency accounting subsystem.

16.12 	Sec. 15. REPEALER.
 16.13 	Minnesota Statutes 2024, section 462A.21, subdivision 5, is repealed.

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

	ARTICLE 1	HOUSING APPROPRIATIONS........	Page.Ln 1.17	
	ARTICLE 2	HOUSING INFRASTRUCTURE BONDS........	Page.Ln 6.1	
	ARTICLE 3	HOUSING POLICY........	Page.Ln 8.20	

APPENDIX 

Repealed Minnesota Statutes: H1141-3 

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.