1.1 	A bill for an act
1.2 	relating to state government; establishing a budget for the Minnesota Housing 
1.3 	Finance Agency; appropriating money.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5	Section 1. APPROPRIATIONS.
 	
1.6 	The sums shown in the columns marked "Appropriations" are appropriated to the agency 
1.7 	for the purposes specified in this article. The appropriations are from the general fund, or 
1.8 	another named fund, and are available for the fiscal years indicated for each purpose. The 
1.9 	figures "2026" and "2027" used in this article mean that the appropriations listed under them 
1.10 	are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively. "The 
1.11 	first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium" is 
1.12 	fiscal years 2026 and 2027.

1.13				APPROPRIATIONS
	
1.14				Available for the Year
	
1.15				Ending June 30
	
1.16					2026
		2027

1.17	Sec. 2. HOUSING FINANCE AGENCY

1.18	Subdivision 1.Total Appropriation
 	$
	82,798,000
	$
	82,798,000
	
1.19 	(a) The amounts that may be spent for each 
1.20 	purpose are specified in the following 
1.21 	subdivisions.
2.1 	(b) Unless otherwise specified, this 
2.2 	appropriation is for transfer to the housing 
2.3 	development fund for the programs specified 
2.4 	in this section. Except as otherwise indicated, 
2.5 	the amounts appropriated for this transfer are 
2.6 	part of the agency's permanent budget base.

2.7	Subd. 2.Challenge Program
 		12,925,000
		12,925,000
	
2.8 	(a) This appropriation is for the economic 
2.9 	development and housing challenge program 
2.10 	under Minnesota Statutes, section 462A.33 
2.11 	and 462A.07, subdivision 14.
2.12 	(b) Of this amount, $1,208,000 each year shall 
2.13 	be made available during the first 11 months 
2.14 	of the fiscal year exclusively for housing 
2.15 	projects for American Indians. Any funds not 
2.16 	committed to housing projects for American 
2.17 	Indians within the annual consolidated request 
2.18 	for funding processes may be available for 
2.19 	any eligible activity under Minnesota Statutes, 
2.20 	sections 462A.33 and 462A.07, subdivision 
2.21 	14.

2.22	Subd. 3.Workforce Housing Development
 		2,000,000
		2,000,000
	
2.23 	This appropriation is for the Greater 
2.24 	Minnesota workforce housing development 
2.25 	program under Minnesota Statutes, section 
2.26 	462A.39. If requested by the applicant and 
2.27 	approved by the agency, funded properties 
2.28 	may include a portion of income and rent 
2.29 	restricted units. Funded properties may include 
2.30 	owner-occupied homes.

3.1
3.2	Subd. 4.Manufactured Home Park 
Infrastructure Grants
 		1,000,000
		1,000,000
	
3.3 	This appropriation is for manufactured home 
3.4 	park infrastructure grants under Minnesota 
3.5 	Statutes, section 462A.2035, subdivision 1b.

3.6	Subd. 5.Workforce Homeownership Program
 		250,000
		250,000
	
3.7 	This appropriation is for the workforce 
3.8 	homeownership program under Minnesota 
3.9 	Statutes, section 462A.38.

3.10	Subd. 6.Rent Assistance Program
 		23,000,000
		23,000,000
	
3.11 	This appropriation is for the rent assistance 
3.12 	program under Minnesota Statutes, section 
3.13 	462A.2095.

3.14	Subd. 7.Housing Trust Fund
 		11,646,000
		11,646,000
	
3.15 	This appropriation is for deposit in the housing 
3.16 	trust fund account created under Minnesota 
3.17 	Statutes, section 462A.201, and may be used 
3.18 	for the purposes provided in that section.

3.19	Subd. 8.Homework Starts with Home
 		2,750,000
		2,750,000
	
3.20 	This appropriation is for the homework starts 
3.21 	with home program under Minnesota Statutes, 
3.22 	sections 462A.201, subdivision 2, paragraph 
3.23 	(a), clause (4), and 462A.204, subdivision 8, 
3.24 	to provide assistance to homeless families, 
3.25 	those at risk of homelessness, or highly mobile 
3.26 	families.

3.27	Subd. 9.Rental Assistance for Mentally Ill
 		5,338,000
		5,338,000
	
3.28 	(a) This appropriation is for the rental housing 
3.29 	assistance program for persons with a mental 
3.30 	illness or families with an adult member with 
3.31 	a mental illness under Minnesota Statutes, 
3.32 	section 462A.2097. Among comparable 
3.33 	proposals, the agency shall prioritize those 
4.1 	proposals that target, in part, eligible persons 
4.2 	who desire to move to more integrated, 
4.3 	community-based settings.
4.4 	(b) Notwithstanding any law to the contrary, 
4.5 	this appropriation may be used for risk 
4.6 	mitigation funds, landlord incentives, or other 
4.7 	costs necessary to decrease the risk of 
4.8 	homelessness, as determined by the agency.

4.9	Subd. 10.Family Homeless Prevention
 		10,269,000
		10,269,000
	
4.10 	(a) This appropriation is for the family 
4.11 	homeless prevention and assistance program 
4.12 	under Minnesota Statutes, section 462A.204.
4.13 	(b) Notwithstanding any law to the contrary, 
4.14 	this appropriation may be used for program 
4.15 	costs necessary to decrease the risk of 
4.16 	homelessness and improve the effectiveness 
4.17 	of the program, as determined by the agency.
4.18 	(c) When a new grantee works with a current 
4.19 	or former grantee in a given geographic area, 
4.20 	a new grantee may work with either an 
4.21 	advisory committee as required under 
4.22 	Minnesota Statutes, section 462A.204, 
4.23 	subdivision 6, or the local continuum of care 
4.24 	and is not required to meet the requirements 
4.25 	of Minnesota Statutes, section 462A.204, 
4.26 	subdivision 4.

4.27	Subd. 11.Home Ownership Assistance Fund
 		885,000
		885,000
	
4.28 	This appropriation is for the home ownership 
4.29 	assistance program under Minnesota Statutes, 
4.30 	section 462A.21, subdivision 8. The agency 
4.31 	shall continue to strengthen its efforts to 
4.32 	address the disparity gap in the 
4.33 	homeownership rate between white 
4.34 	households and indigenous American Indians 
5.1 	and communities of color. To better 
5.2 	understand and address the disparity gap, the 
5.3 	agency is required to collect, on a voluntary 
5.4 	basis, demographic information regarding 
5.5 	race, color, national origin, and sex of 
5.6 	applicants for agency programs intended to 
5.7 	benefit homeowners and homebuyers.

5.8	Subd. 12.Affordable Rental Investment Fund
 		4,218,000
		4,218,000
	
5.9 	(a) This appropriation is for the affordable 
5.10 	rental investment fund program under 
5.11 	Minnesota Statutes, section 462A.21, 
5.12 	subdivision 8b, to finance the acquisition, 
5.13 	rehabilitation, and debt restructuring of 
5.14 	federally assisted rental property and for 
5.15 	making equity take-out loans under Minnesota 
5.16 	Statutes, section 462A.05, subdivision 39.
5.17 	(b) The owner of federally assisted rental 
5.18 	property must agree to participate in the 
5.19 	applicable federally assisted housing program 
5.20 	and to extend any existing low-income 
5.21 	affordability restrictions on the housing for 
5.22 	the maximum term permitted.
5.23 	(c) The appropriation also may be used to 
5.24 	finance the acquisition, rehabilitation, and debt 
5.25 	restructuring of existing supportive housing 
5.26 	properties and naturally occurring affordable 
5.27 	housing as determined by the commissioner. 
5.28 	For purposes of this paragraph, "supportive 
5.29 	housing" means affordable rental housing with 
5.30 	links to services necessary for individuals, 
5.31 	youth, and families with children to maintain 
5.32 	housing stability.

5.33
5.34	Subd. 13.Owner-Occupied Housing 
Rehabilitation
 		2,772,000
		2,772,000
	
6.1 	(a) This appropriation is for the rehabilitation 
6.2 	of owner-occupied housing under Minnesota 
6.3 	Statutes, section 462A.05, subdivisions 14 and 
6.4 	14a.
6.5 	(b) Notwithstanding any law to the contrary, 
6.6 	grants or loans under this subdivision may be 
6.7 	made without rent or income restrictions of 
6.8 	owners or tenants. To the extent practicable, 
6.9 	grants or loans must be made available 
6.10 	statewide.

6.11	Subd. 14.Rental Housing Rehabilitation
 		3,743,000
		3,743,000
	
6.12 	(a) This appropriation is for the rehabilitation 
6.13 	of eligible rental housing under Minnesota 
6.14 	Statutes, section 462A.05, subdivision 14. In 
6.15 	administering a rehabilitation program for 
6.16 	rental housing, the agency may apply the 
6.17 	processes and priorities adopted for 
6.18 	administration of the economic development 
6.19 	and housing challenge program under 
6.20 	Minnesota Statutes, section 462A.33, and may 
6.21 	provide grants or forgivable loans if approved 
6.22 	by the agency.
6.23 	(b) Notwithstanding any law to the contrary, 
6.24 	grants or loans under this subdivision may be 
6.25 	made without rent or income restrictions of 
6.26 	owners or tenants. To the extent practicable, 
6.27 	grants or loans must be made available 
6.28 	statewide.

6.29
6.30	Subd. 15.Homeownership Education, 
Counseling, and Training
 		857,000
		857,000
	
6.31 	This appropriation is for the homeownership 
6.32 	education, counseling, and training program 
6.33 	under Minnesota Statutes, section 462A.209.

6.34	Subd. 16.Capacity Building Grants
 		645,000
		645,000
	
7.1 	This appropriation is for capacity building 
7.2 	grants under Minnesota Statutes, section 
7.3 	462A.21, subdivision 3b.

7.4	Subd. 17.Build Wealth MN
 		500,000
		500,000
	
7.5 	This appropriation is for a grant to Build 
7.6 	Wealth Minnesota to provide a family 
7.7 	stabilization plan program including program 
7.8 	outreach, financial literacy education, and 
7.9 	budget and debt counseling.

7.10	Subd. 18.Availability and Transfer of Funds
 					
7.11 	Money appropriated in the first year in this 
7.12 	article is available the second year. The 
7.13 	commissioner may shift or transfer money in 
7.14 	the second year in subdivisions 2, 3, 4, 5, 12, 
7.15 	13, and 14 to address high-priority housing 
7.16 	needs.