HF 1141

3rd Engrossment - 94th Legislature (2025 - 2026)

Posted on 05/15/2026 12:51 p.m.

A bill for an act
relating to housing; establishing supplemental budget for the Minnesota Housing
Finance Agency; making policy, finance, and technical changes to housing
provisions; authorizing an issuance of housing infrastructure bonds; modifying
agency authority over the housing development fund; authorizing certain investment
authority for housing and redevelopment agencies; modifying certain income
provisions for lived-experience engagement with the agency; modifying agency
meeting requirements; requiring reports; transferring money; appropriating money;
amending Minnesota Statutes 2024, sections 118A.09, subdivisions 2, 4, by adding
a subdivision; 462A.041; 462A.05, subdivision 8; 462A.20, subdivisions 2, 3, 4,
by adding a subdivision; 462A.21, subdivisions 10, 12a; 462A.37, by adding a
subdivision; Minnesota Statutes 2025 Supplement, sections 462A.37, subdivision
5; 462A.44, subdivision 3; Laws 2023, chapter 37, article 1, section 2, subdivision
18, as amended; 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 2023, chapter 37, article 1, section 2, subdivision 18, as amended by Laws
2024, chapter 127, article 14, section 9, and Laws 2026, chapter 43, section 1, is amended
to read:

Subd. 18. Supportive Housing

10,000,000

-0-

(a) This appropriation is for the supportive
housing program under Minnesota Statutes,
section 462A.42. This is a onetime
appropriation.

(b) Of this amount, $9,000,000 is for grants
to United States Department of Housing and
Urban Development Continuum of Care
Program grantees for fiscal year 2024 new text begin or fiscal
year 2025 new text end whose contracts have expired or
will expire before December 31, deleted text begin 2026 deleted text end new text begin 2027 new text end ,
and have experienced or will experience
funding gaps. The agency may prioritize
awards to grantees based on need. new text begin The agency
shall coordinate with local Continuums of
Care to identify grantee prioritization. new text end
Notwithstanding the application provisions
outlined in Minnesota Statutes, section
462A.42, subdivision 5, and the procurement
provisions outlined in Minnesota Statutes,
section 16C.06, subdivisions 1, 2, and 6, the
agency may noncompetitively award grants
to existing and previous federal continuum of
care funding recipients. Notwithstanding
Minnesota Statutes, section 462A.42,
subdivision 4, funding deleted text begin may deleted text end new text begin must new text end be used as
supplemental emergency support resources new text begin ,
which can include matching funds, new text end for
permanent supportive housing, rapid
rehousing, transitional housing, and
system-related activities for the identified
grantees. The agency will coordinate with
stakeholders on a distribution process and
establish such a process within 30 days of
enactment.

(c) Beginning 90 days after the agency
obligates the appropriation and every 90 days
thereafter, each grantee shall report to the
commissioner detailing the use of grant money
and the number of people served. The
requirement for a grantee to report to the
commissioner under this paragraph expires
upon submission of a final report to the
commissioner following the exhaustion or
return of grant money. Within ten days after
the reports from each grantee are due, the
commissioner shall compile the reports
required by this paragraph from each grantee.
The compiled report shall also identify any
grantee that has not submitted a report required
by this paragraph to the commissioner. The
commissioner shall submit a copy of each
compiled report to the chairs and ranking
minority members of the legislative
committees with jurisdiction over housing.
The commissioner shall also file each
compiled report with the Legislative Reference
Library in compliance with Minnesota
Statutes, section 3.195.

new text begin (d) In the event that the amount specified in
paragraph (b) is no longer needed to address
financial needs of existing and previous
federal Continuum of Care funding recipients
as set out in paragraph (b), then remaining
funds may be used by the agency for purposes
set out in paragraph (a).
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. new text begin MINNESOTA HOUSING FINANCE AGENCY APPROPRIATIONS.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, sections 462A.20, subdivision 3, and 462A.21,
subdivision 10, $25,000,000 in fiscal year 2027 is appropriated from the aggregated earnings
from investments of state appropriations made pursuant to Minnesota Statutes, section
462A.20, subdivision 3, in the housing development fund to the commissioner of the
Minnesota Housing Finance Agency for the following purposes:
new text end

new text begin (1) $14,275,000 is for the workforce housing development program under Minnesota
Statutes, section 462A.39;
new text end

new text begin (2) $4,000,000 is for the supportive housing program under Minnesota Statutes, section
462A.42, and must be used for the purposes provided in section 1, paragraph (b), except
that, as provided in section 1, paragraph (d), if this amount is not needed for those purposes,
it may be used for the purposes provided in Minnesota Statutes, section 462A.42;
new text end

new text begin (3) $4,000,000 is for the manufactured home park infrastructure grant and loan program
under Minnesota Statutes, section 462A.2035, subdivision 1b;
new text end

new text begin (4) $2,000,000 is for the family homeless prevention and assistance program under
Minnesota Statutes, section 462A.204, and may be used in the manner provided in section
3, subdivision 3;
new text end

new text begin (5) $425,000 is for the capacity-building grants program under Minnesota Statutes,
section 462A.21, subdivision 3b, for a grant to a statewide tenant education and hotline
service that provides free and confidential legal advice for all Minnesota renters. This amount
may be awarded to existing grantees notwithstanding Minnesota Statutes, section 16C.06,
subdivisions 1, 2, and 6;
new text end

new text begin (6) $150,000 is for the homeownership education, counseling, and training program
under Minnesota Statutes, section 462A.209. This amount may be awarded to existing
grantees notwithstanding Minnesota Statutes, section 16C.06, subdivisions 1, 2, and 6; and
new text end

new text begin (7) $150,000 is for the Minnesota Nice HomeShare pilot program established under
paragraph (b).
new text end

new text begin (b) The commissioner of the Minnesota Housing Finance Agency must award a grant
to St. Louis County for the county to establish and administer the Minnesota Nice HomeShare
pilot program to assist 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. St. Louis County may partner with the Arrowhead Area Agency on Aging,
the other named counties in this paragraph, or organizations that advocate for seniors, to
promote the program. The program 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

new text begin (c) This is a onetime appropriation.
new text end

Sec. 3. 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 money. 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 money.
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, less $2,000,000, is
appropriated in fiscal year 2027 from the general fund to the commissioner of the Minnesota
Housing Finance Agency for the family homeless prevention and assistance program under
Minnesota Statutes, section 462A.204. This is a onetime appropriation and is made available
for the purposes of the housing development fund. Notwithstanding the procurement
provisions outlined in Minnesota Statutes, section 16C.06, subdivisions 1, 2, and 6, the
agency may award grants to federally recognized Indian Tribes, to existing program grantees,
and to former program grantees. The agency must consider community need, grantee
capacity, and geographic distribution when awarding money. Notwithstanding Minnesota
Statutes, section 16B.97, the agency must use all available methods and schedule of
payments, including advanced payments, to effectuate legislative intent. Money must be
spent by December 31, 2026. The agency may, at its discretion, redistribute unused or
underutilized money among grantees to increase program efficiency and effectiveness.
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.

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 3

HOUSING POLICY

Section 1.

Minnesota Statutes 2024, section 118A.09, subdivision 2, is amended to read:

Subd. 2.

Additional investment authority.

Qualifying governments may invest the
amount described in subdivision 3:

(1) in index mutual funds based in the United States and indexed to a broad market
United States equity index, on the condition that index mutual fund investments must be
made directly with the main sales office of the fund; deleted text begin or
deleted text end

(2) new text begin in shares of a company that:
new text end

new text begin (i) is registered with the United States Securities and Exchange Commission;
new text end

new text begin (ii) concentrates in investment grade fixed income securities;
new text end

new text begin (iii) holds, at the time of purchase, at least 80 percent of its investments in federally
insured or guaranteed securities, including by government sponsored entities; and
new text end

new text begin (iv) has a mission, in part, to provide direct investment in local multifamily housing
development; or
new text end

new text begin (3) new text end with the Minnesota State Board of Investment subject to such terms and minimum
amounts as may be adopted by the board.

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 118A.09, is amended by adding a subdivision to
read:

new text begin Subd. 3a. new text end

new text begin Housing and redevelopment authorities; investment authority. new text end

new text begin A housing
and redevelopment authority created in a county or statutory or home rule charter city that
meets the criteria of subdivision 1, paragraph (a), clause (1) or (2), may invest its funds in
investments that meet the criteria of subdivision 2, clause (2), subject to the limitations and
requirements for qualifying governments under subdivisions 3 and 4.
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 118A.09, subdivision 4, is amended to read:

Subd. 4.

Approval.

Before investing pursuant to this section, the governing body of the
qualifying government must adopt a resolution new text begin or investment policy new text end that includes the
following statements:

(1) the governing body understands that investments under subdivision 2 have a risk of
loss;

(2) the governing body understands the type of funds that are being invested and the
specific investment itself; and

(3) the governing body certifies that all funds designated for investment through the
State Board of Investment meet the requirements of this section and the policies and
procedures established by the State Board of Investment.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2024, section 462A.041, is amended to read:

462A.041 MEETINGS BY deleted text begin TELEPHONE OR OTHER ELECTRONIC MEANS deleted text end
new text begin INTERACTIVE TECHNOLOGY new text end .

new text begin (a) For the purposes of this section, "interactive technology" has the meaning in section
13D.001, subdivision 2.
new text end

deleted text begin (a) Notwithstanding sections 13D.01 and 13D.02, deleted text end new text begin (b) new text end The Housing Finance Agency may
conduct a meeting of its members by deleted text begin telephone or other electronic means deleted text end new text begin interactive
technology new text end so long as the following conditions are met:

(1) all members of the agency participating in the meeting, wherever their physical
location, can hear one another and can hear all discussion and testimony;

(2) members of the public present at the regular meeting location of the agency can hear
all discussion and testimony and all votes of members of the agency;

(3) at least one member of the agency, the commissioner, the deputy commissioner, or
an attorney for the agency is physically present at the regular meeting location; and

(4) all votes are conducted by roll call, so each member's vote on each issue can be
identified and recorded.

deleted text begin (b) deleted text end new text begin (c) new text end Each member of the agency participating in a meeting by deleted text begin electronic means deleted text end new text begin
interactive technology new text end is considered present at the meeting for purposes of determining a
quorum and participating in all proceedings.

deleted text begin (c) deleted text end new text begin (d) new text end If deleted text begin telephone or another electronic means deleted text end new text begin interactive technology new text end is used to conduct
a meeting, the agency to the extent practical, shall allow a person to monitor the meeting
electronically from a remote location. deleted text begin The agency may require the person making such a
connection to pay for documented marginal costs that the agency incurs as a result of the
additional connection. deleted text end new text begin Meetings must be made available on a website for live video streaming
and be archived on a website for playback at a later time.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end If deleted text begin telephone or another electronic means deleted text end new text begin interactive technology new text end is used to conduct
a regular, special, or emergency meeting, the agency shall provide notice of the regular
meeting location, of the fact that some members may participate by deleted text begin electronic means deleted text end new text begin
interactive technology new text end , and of the provisions of paragraph deleted text begin (c) deleted text end new text begin (d) new text end . The timing and method
of providing notice is governed by section 13D.04.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2026.
new text end

Sec. 5.

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. This paragraph expires June 30, 2028.
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.

Minnesota Statutes 2024, section 462A.20, subdivision 2, is amended to read:

Subd. 2.

Which money in fund.

new text begin (a) new text end There shall be paid into the housing development
fund:

(1) any moneys appropriated and made available by the state for the purposes of the
fund;

new text begin (2) any moneys transferred into and made available by the state for the purposes of the
fund;
new text end

deleted text begin (2) deleted text end new text begin (3) new text end any moneys which the agency receives in repayment of advances made from the
fund;

deleted text begin (3) deleted text end new text begin (4) new text end any other moneys which may be made available to the agency for the purpose of
the fund from any other source or sources;

deleted text begin (4) deleted text end new text begin (5) new text end all fees and charges collected by the agency;

deleted text begin (5) deleted text end new text begin (6) new text end all interest or other income not required by the provisions of a resolution or
indenture securing notes or bonds to be paid into another special fund.

new text begin (b) Money in the housing development fund may be used only for the purposes of the
housing development fund and may not be transferred from the fund for other purposes.
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.

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 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 The commissioner must
inform the chairs and ranking minority members of the legislative committees with
jurisdiction over housing finance and policy in writing prior to making a transfer pursuant
to this subdivision. The written notice must include how much money will be transferred,
why the transfer will be made, and when the transfer will occur. The written notice must
also be filed with the Legislative Reference Library in compliance with section 3.195.
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. 8.

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

Subd. 4.

deleted text begin Operating costs deleted text end Report.

new text begin (a) new text end On or before February 15 of each year, the agency
deleted text begin shall deliver deleted text end new text begin must submit new text end a report to the chairs deleted text begin of the finance and appropriations committees
of the legislature deleted text end new text begin and ranking minority members of the legislative committees having
jurisdiction over housing finance and policy, ways and means, and finance new text end on the costs of
operating the agency in the previous fiscal year. The report deleted text begin shall include deleted text end new text begin must differentiate
between costs to administer programs funded by state appropriations and other agency
activities. For both types of costs, the report must include the following: (1) new text end the expenditures
for salaries and benefits, rent, professional and technical services, new text begin and new text end general agency
administration deleted text begin , deleted text end new text begin ; (2) the number of full-time equivalent staff positions; new text end and new text begin (3) the new text end agency's
audited financial statements which include information on expenditures and receipts relating
to debt issuance and administration and loan origination and administration. The report deleted text begin shall deleted text end new text begin
must also new text end include a budget plan for new text begin operating costs that differentiates between the costs to
administer programs funded by state appropriations and other agency activities. For both
types of costs, the report must include projected costs for new text end 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 new text begin and ranking minority members new text end of
the legislative committees deleted text begin or divisions deleted text end with jurisdiction over deleted text begin the agency's budget deleted text end new text begin housing
finance and policy new text end 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 new text begin and ranking minority members new text end of
the legislative committees deleted text begin or divisions deleted text end with jurisdiction over deleted text begin the agency's budget deleted text end new text begin housing
finance and policy new text end 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 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 (2) 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 (3) the amounts of any administrative retentions from state appropriations in the prior
calendar year;
new text end

new text begin (4) 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; and
new text end

new text begin (5) the amount that the agency projected pursuant to subdivision 5, paragraph (a), clause
(2), in its most recent calculation pursuant to that subdivision, along with information on
the assumptions used in creating those projections.
new text end

Sec. 9.

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 Use of earnings from investments of state appropriations required. new text end

new text begin (a) By
September 1 each odd-numbered year, the agency must determine the difference between:
(1) the amount as of June 30 of that year of aggregated earnings from investments of state
appropriations in the housing development fund; and (2) the amount that the agency projects
that it will incur in costs and expenses necessary and incidental to the development and
operation of programs funded by state appropriations in the fiscal year beginning that July
1 and in the following fiscal year.
new text end

new text begin (b) Each biennium the commissioner must use 25 percent of the difference determined
in paragraph (a), in the manner provided in this subdivision. Before December 31 of the
even-numbered year in each biennium, the agency must encumber the amount to be used
under this subdivision, or the agency must provide public notice of the solicitations through
which the amount will be awarded. Earnings must be used for purposes that are comparable
to the purposes of the respective original appropriations and consistent with legislative
intent.
new text end

new text begin (c) Use of aggregated earnings from investment of state appropriations is not required
under this subdivision if, when completing the calculation under paragraph (a), the amount
in paragraph (a), clause (2), exceeds the amount in paragraph (a), clause (1).
new text end

new text begin (d) The agency must consult with the commissioner of management and budget when
projecting its costs pursuant to paragraph (a), clause (2).
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. 10.

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

Subd. 10.

Certain appropriations available until expended.

Notwithstanding deleted text begin the
repeal of section 462A.26 and the provisions of deleted text end 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. 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 new text begin or for the purposes provided in section 462A.20,
subdivision 5 new text end , after payment of the costs and expenses necessary and incidental to the
development and operation of deleted text begin the programs authorized under this chapter deleted text end new text begin all programs
funded by state appropriations 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. 11.

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 The commissioner must inform the chairs and ranking minority
members of the legislative committees with jurisdiction over housing finance and policy in
writing prior to making a transfer pursuant to this subdivision. The written notice must
include how much money will be transferred, why the transfer will be made, and when the
transfer will occur. The written notice must also be filed with the Legislative Reference
Library in compliance with section 3.195.
new text end

Sec. 12.

Minnesota Statutes 2025 Supplement, section 462A.44, subdivision 3, is amended
to read:

Subd. 3.

Eligible recipient.

(a) A city, as defined in section 462C.02, subdivision 6, or
a county is eligible to apply for and receive a grant from deleted text begin either account established in
subdivision 2 deleted text end new text begin the bond proceeds fund or a loan from the local public housing development
fund new text end .

(b) A federally recognized American Indian Tribe or a Tribally designated housing entity
is eligible to apply for and receive a loan from the local public housing program account in
the housing development fund.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

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. 14. new text begin LEGISLATIVE FISCAL STAFF ACCESS TO ACCOUNTING
SUBSYSTEM.
new text end

new text begin By February 15, 2027, the commissioner of the Minnesota Housing Finance Agency
must report to the chairs and ranking minority members of the legislative committees with
jurisdiction over housing finance and policy on how the agency will provide legislative
fiscal staff with remote access to the agency accounting subsystem.
new text end

Sec. 15. 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

new text begin EFFECTIVE DATE. new text end

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

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.