1.1 	A bill for an act
1.2 	relating to housing; establishing a budget for the Minnesota Housing Finance 
1.3 	Agency; authorizing the issuance of housing infrastructure bonds; establishing an 
1.4 	Accessible Housing Task Force; modifying the community-based first-generation 
1.5 	homebuyers down payment assistance program; providing for the creation of a 
1.6 	policy framework for targeted stabilization of regulated affordable housing; 
1.7 	repealing housing support account in special revenue fund; requiring reports; 
1.8 	transferring money; appropriating money;amending Minnesota Statutes 2024, 
1.9 	sections 462A.07, subdivision 19, by adding subdivisions; 462A.37, subdivision 
1.10 	5, by adding a subdivision; Laws 2023, chapter 37, article 1, section 2, subdivision 
1.11 	20; article 2, section 9; repealing Minnesota Statutes 2024, sections 16A.287; 
1.12 	462A.43.
1.13 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.14 	ARTICLE 1
1.15 	HOUSING BUDGET APPROPRIATIONS

1.16	Section 1. APPROPRIATIONS.
 	
1.17 	The sums shown in the columns marked "Appropriations" are appropriated to the agency 
1.18 	for the purposes specified in this article. The appropriations are from the general fund, or 
1.19 	another named fund, and are available for the fiscal years indicated for each purpose. The 
1.20 	figures "2026" and "2027" used in this article mean that the appropriations listed under them 
1.21 	are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively. "The 
1.22 	first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium" is 
1.23 	fiscal years 2026 and 2027.

1.24				APPROPRIATIONS
	
1.25				Available for the Year
	
1.26				Ending June 30
	
1.27					2026
		2027

2.1	Sec. 2. HOUSING FINANCE AGENCY

2.2	Subdivision 1.Total Appropriation
 	$
	158,698,000
	$
	83,248,000
	
2.3 	(a) The amounts that may be spent for each 
2.4 	purpose are specified in the following 
2.5 	subdivisions.
2.6 	(b) Unless otherwise specified, the 
2.7 	appropriations for the programs in this section 
2.8 	are appropriated and made available for the 
2.9 	purposes of the housing development fund. 
2.10 	Except as otherwise indicated, the amounts 
2.11 	appropriated are part of the agency's 
2.12 	permanent budget base.

2.13	Subd. 2.Challenge Program
 		22,925,000
		12,925,000
	
2.14 	(a) This appropriation is for the economic 
2.15 	development and housing challenge program 
2.16 	under Minnesota Statutes, sections 462A.33 
2.17 	and 462A.07, subdivision 14.
2.18 	(b) Of this amount, $1,208,000 each year shall 
2.19 	be made available during the first 11 months 
2.20 	of the fiscal year exclusively for housing 
2.21 	projects for American Indians. Any funds not 
2.22 	committed to housing projects for American 
2.23 	Indians within the annual consolidated request 
2.24 	for funding processes may be available for 
2.25 	any eligible activity under Minnesota Statutes, 
2.26 	sections 462A.33 and 462A.07, subdivision 
2.27 	14.
2.28 	(c) The base for this program in fiscal year 
2.29 	2028 and beyond is $12,925,000.

2.30	Subd. 3.Workforce Housing Development
 		12,000,000
		2,000,000
	
2.31 	(a) This appropriation is for the greater 
2.32 	Minnesota workforce housing development 
2.33 	program under Minnesota Statutes, section 
3.1 	462A.39. If requested by the applicant and 
3.2 	approved by the agency, funded properties 
3.3 	may include a portion of income and rent 
3.4 	restricted units. Funded properties may include 
3.5 	owner-occupied homes.
3.6 	(b) The base for this program in fiscal year 
3.7 	2028 and beyond is $2,000,000.

3.8
3.9	Subd. 4.Manufactured Home Park 
Infrastructure Grants
 		3,000,000
		1,000,000
	
3.10 	(a) This appropriation is for manufactured 
3.11 	home park infrastructure grants under 
3.12 	Minnesota Statutes, section 462A.2035, 
3.13 	subdivision 1b.
3.14 	(b) The base for this program in fiscal year 
3.15 	2028 and beyond is $1,000,000.

3.16	Subd. 5.Workforce Homeownership Program
 		3,250,000
		250,000
	
3.17 	(a) This appropriation is for the workforce 
3.18 	homeownership program under Minnesota 
3.19 	Statutes, section 462A.38.
3.20 	(b) The base for this program in fiscal year 
3.21 	2028 and beyond is $250,000.

3.22	Subd. 6.Rent Assistance Program
 		23,000,000
		23,000,000
	
3.23 	This appropriation is for the rent assistance 
3.24 	program under Minnesota Statutes, section 
3.25 	462A.2095.

3.26	Subd. 7.Housing Trust Fund
 		11,646,000
		11,646,000
	
3.27 	This appropriation is for deposit in the housing 
3.28 	trust fund account created under Minnesota 
3.29 	Statutes, section 462A.201, and may be used 
3.30 	for the purposes provided in that section.

4.1	Subd. 8.Homework Starts with Home
 		2,750,000
		2,750,000
	
4.2 	This appropriation is for the homework starts 
4.3 	with home program under Minnesota Statutes, 
4.4 	sections 462A.201, subdivision 2, paragraph 
4.5 	(a), clause (4), and 462A.204, subdivision 8, 
4.6 	to provide assistance to homeless families, 
4.7 	those at risk of homelessness, or highly mobile 
4.8 	families.

4.9	Subd. 9.Rental Assistance for Mentally Ill
 		5,338,000
		5,338,000
	
4.10 	(a) This appropriation is for the rental housing 
4.11 	assistance program for persons with a mental 
4.12 	illness or families with an adult member with 
4.13 	a mental illness under Minnesota Statutes, 
4.14 	section 462A.2097. Among comparable 
4.15 	proposals, the agency shall prioritize those 
4.16 	proposals that target, in part, eligible persons 
4.17 	who desire to move to more integrated, 
4.18 	community-based settings.
4.19 	(b) Notwithstanding any law to the contrary, 
4.20 	this appropriation may be used for risk 
4.21 	mitigation funds, landlord incentives, or other 
4.22 	costs necessary to decrease the risk of 
4.23 	homelessness, as determined by the agency.

4.24	Subd. 10.Family Homeless Prevention
 		40,419,000
		10,719,000
	
4.25 	(a) This appropriation is for the family 
4.26 	homeless prevention and assistance program 
4.27 	under Minnesota Statutes, section 462A.204.
4.28 	(b) Notwithstanding any law to the contrary, 
4.29 	this appropriation may be used for program 
4.30 	costs necessary to decrease the risk of 
4.31 	homelessness and improve the effectiveness 
4.32 	of the program, as determined by the agency.
4.33 	(c) When a new grantee works with a current 
4.34 	or former grantee in a given geographic area, 
5.1 	a new grantee may work with either an 
5.2 	advisory committee as required under 
5.3 	Minnesota Statutes, section 462A.204, 
5.4 	subdivision 6, or the local continuum of care 
5.5 	and is not required to meet the requirements 
5.6 	of Minnesota Statutes, section 462A.204, 
5.7 	subdivision 4.
5.8 	(d) The base for this program in fiscal year 
5.9 	2028 and beyond is $10,719,000.

5.10	Subd. 11.Home Ownership Assistance Fund
 		885,000
		885,000
	
5.11 	This appropriation is for the home ownership 
5.12 	assistance program under Minnesota Statutes, 
5.13 	section 462A.21, subdivision 8. The agency 
5.14 	shall continue to strengthen its efforts to 
5.15 	address the disparity gap in the 
5.16 	homeownership rate between white 
5.17 	households and Indigenous American Indians 
5.18 	and communities of color. To better 
5.19 	understand and address the disparity gap, the 
5.20 	agency is required to collect, on a voluntary 
5.21 	basis, demographic information regarding 
5.22 	race, color, national origin, and sex of 
5.23 	applicants for agency programs intended to 
5.24 	benefit homeowners and homebuyers.

5.25	Subd. 12.Affordable Rental Investment Fund
 		4,218,000
		4,218,000
	
5.26 	(a) This appropriation is for the affordable 
5.27 	rental investment fund program under 
5.28 	Minnesota Statutes, section 462A.21, 
5.29 	subdivision 8b, to finance the acquisition, 
5.30 	rehabilitation, and debt restructuring of 
5.31 	federally assisted rental property and for 
5.32 	making equity take-out loans under Minnesota 
5.33 	Statutes, section 462A.05, subdivision 39.
6.1 	(b) The owner of federally assisted rental 
6.2 	property must agree to participate in the 
6.3 	applicable federally assisted housing program 
6.4 	and to extend any existing low-income 
6.5 	affordability restrictions on the housing for 
6.6 	the maximum term permitted.
6.7 	(c) The appropriation also may be used to 
6.8 	finance the acquisition, rehabilitation, and debt 
6.9 	restructuring of existing supportive housing 
6.10 	properties and naturally occurring affordable 
6.11 	housing as determined by the commissioner. 
6.12 	For purposes of this paragraph, "supportive 
6.13 	housing" means affordable rental housing with 
6.14 	links to services necessary for individuals, 
6.15 	youth, and families with children to maintain 
6.16 	housing stability.

6.17
6.18	Subd. 13.Owner-Occupied Housing 
Rehabilitation
 		2,772,000
		2,772,000
	
6.19 	(a) This appropriation is for the rehabilitation 
6.20 	of owner-occupied housing under Minnesota 
6.21 	Statutes, section 462A.05, subdivisions 14 and 
6.22 	14a.
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	Subd. 14.Rental Housing Rehabilitation
 		3,743,000
		3,743,000
	
6.30 	(a) This appropriation is for the rehabilitation 
6.31 	of eligible rental housing under Minnesota 
6.32 	Statutes, section 462A.05, subdivision 14. In 
6.33 	administering a rehabilitation program for 
6.34 	rental housing, the agency may apply the 
6.35 	processes and priorities adopted for 
7.1 	administration of the economic development 
7.2 	and housing challenge program under 
7.3 	Minnesota Statutes, section 462A.33, and may 
7.4 	provide grants or forgivable loans if approved 
7.5 	by the agency.
7.6 	(b) Notwithstanding any law to the contrary, 
7.7 	grants or loans under this subdivision may be 
7.8 	made without rent or income restrictions of 
7.9 	owners or tenants. To the extent practicable, 
7.10 	grants or loans must be made available 
7.11 	statewide.

7.12
7.13	Subd. 15.Homeownership Education, 
Counseling, and Training
 		857,000
		857,000
	
7.14 	This appropriation is for the homeownership 
7.15 	education, counseling, and training program 
7.16 	under Minnesota Statutes, section 462A.209.

7.17	Subd. 16.Capacity Building Grants
 		645,000
		645,000
	
7.18 	This appropriation is for capacity building 
7.19 	grants under Minnesota Statutes, section 
7.20 	462A.21, subdivision 3b.

7.21	Subd. 17.Build Wealth MN
 		500,000
		500,000
	
7.22 	This appropriation is for a grant to Build 
7.23 	Wealth Minnesota to provide a family 
7.24 	stabilization plan program including program 
7.25 	outreach, financial literacy education, and 
7.26 	budget and debt counseling.

7.27
7.28	Subd. 18.Greater Minnesota Housing 
Infrastructure Grants
 		20,000,000
		-0-
	
7.29 	This appropriation is for the greater Minnesota 
7.30 	housing infrastructure grant program under 
7.31 	Minnesota Statutes, section 462A.395. This 
7.32 	is a onetime appropriation.

8.1
8.2	Subd. 19.Statewide Tenant Education and 
Hotline Service
 		500,000
		-0-
	
8.3 	This appropriation is for a statewide tenant 
8.4 	education and hotline service that provides 
8.5 	free and confidential legal advice for all 
8.6 	Minnesota renters. This is a onetime 
8.7 	appropriation.

8.8	Subd. 20.Accessible Housing Task Force
 		150,000
		-0-
	
8.9 	This appropriation is for administration of the 
8.10 	Accessible Housing Task Force established 
8.11 	in this act. This is a onetime appropriation.

8.12
8.13	Subd. 21.Policies to Stabilize Affordable 
Housing
 		100,000
		-0-
	
8.14 	This appropriation is for administration of 
8.15 	article 3, sections 1, 2, and 6. This is a onetime 
8.16 	appropriation.

8.17	Subd. 22.Availability
 					
8.18 	Money appropriated in the first year in this 
8.19 	article is available the second year.

8.20 	Sec. 3. TRANSFER; HOUSING SUPPORT ACCOUNT.
 8.21 	The commissioner of management and budget must transfer any unencumbered balance 
8.22 	from the housing support account, under Minnesota Statutes, section 462A.43, to the general 
8.23 	fund by June 15, 2025.

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

8.25 	Sec. 4. REPEALER.
 8.26 	(a) Minnesota Statutes 2024, section 16A.287, is repealed.
8.27 	(b) Minnesota Statutes 2024, section 462A.43, is repealed.

8.28 	EFFECTIVE DATE. Paragraph (a) is effective June 30, 2025.

9.1 	ARTICLE 2
9.2 	BONDING AUTHORITY AND DEBT SERVICE APPROPRIATIONS

9.3 	Section 1. Minnesota Statutes 2024, section 462A.37, is amended by adding a subdivision 
9.4 	to read:
9.5 		Subd. 2k.Additional authorization. In addition to the amount authorized in subdivisions 
9.6 	2 to 2j and 3a, the agency may issue up to $100,000,000 in one or more series to which the 
9.7 	payments under this section may be pledged.

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

9.9 	Sec. 2. Minnesota Statutes 2024, section 462A.37, subdivision 5, is amended to read:
9.10 		Subd. 5.Additional appropriation. (a) The agency must certify annually to the 
9.11 	commissioner of management and budget the actual amount of annual debt service on each 
9.12 	series of bonds issued under this section.
9.13 	(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure 
9.14 	bonds issued under subdivision 2a, or housing infrastructure bonds issued to refund those 
9.15 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
9.16 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
9.17 	the amount certified under paragraph (a), not to exceed $6,400,000 annually. The amounts 
9.18 	necessary to make the transfers are appropriated from the general fund to the commissioner 
9.19 	of management and budget.
9.20 	(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure 
9.21 	bonds issued under subdivision 2b, or housing infrastructure bonds issued to refund those 
9.22 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
9.23 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
9.24 	the amount certified under paragraph (a), not to exceed $800,000 annually. The amounts 
9.25 	necessary to make the transfers are appropriated from the general fund to the commissioner 
9.26 	of management and budget.
9.27 	(d) Each July 15, beginning in 2019 and through 2040, if any housing infrastructure 
9.28 	bonds issued under subdivision 2c, or housing infrastructure bonds issued to refund those 
9.29 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
9.30 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
9.31 	the amount certified under paragraph (a), not to exceed $2,800,000 annually. The amounts 
9.32 	necessary to make the transfers are appropriated from the general fund to the commissioner 
9.33 	of management and budget.
10.1 	(e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure 
10.2 	bonds issued under subdivision 2d, or housing infrastructure bonds issued to refund those 
10.3 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
10.4 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
10.5 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
10.6 	appropriated from the general fund to the commissioner of management and budget.
10.7 	(f) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure 
10.8 	bonds issued under subdivision 2e, or housing infrastructure bonds issued to refund those 
10.9 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
10.10 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
10.11 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
10.12 	appropriated from the general fund to the commissioner of management and budget.
10.13 	(g) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure 
10.14 	bonds issued under subdivision 2f, or housing infrastructure bonds issued to refund those 
10.15 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
10.16 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
10.17 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
10.18 	appropriated from the general fund to the commissioner of management and budget.
10.19 	(h) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure 
10.20 	bonds issued under subdivision 2g, or housing infrastructure bonds issued to refund those 
10.21 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
10.22 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
10.23 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
10.24 	appropriated from the general fund to the commissioner of management and budget.
10.25 	(i) Each July 15, beginning in 2023 and through 2044, if any housing infrastructure 
10.26 	bonds issued under subdivision 2h, or housing infrastructure bonds issued to refund those 
10.27 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
10.28 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
10.29 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
10.30 	appropriated from the general fund to the commissioner of management and budget.
10.31 	(j) Each July 15, beginning in 2026 and through 2047, if any housing infrastructure 
10.32 	bonds issued under subdivision 2j, or housing infrastructure bonds issued to refund those 
10.33 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
10.34 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
11.1 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
11.2 	appropriated from the general fund to the commissioner of management and budget.
11.3 	(k) Each July 15, beginning in 2027 and through 2048, if any housing infrastructure 
11.4 	bonds issued under subdivision 2k, or housing infrastructure bonds issued to refund those 
11.5 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
11.6 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
11.7 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
11.8 	appropriated from the general fund to the commissioner of management and budget.
11.9 	(l) The agency may pledge to the payment of the housing infrastructure bonds the 
11.10 	payments to be made by the state under this section.

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

11.12 	ARTICLE 3
11.13 	HOUSING POLICY

11.14 	Section 1. Minnesota Statutes 2024, section 462A.07, subdivision 19, is amended to read:
11.15 		Subd. 19.Report to the legislature. (a) By February 15 each year, the commissioner 
11.16 	must submit a report to the chairs and ranking minority members of the legislative committees 
11.17 	having jurisdiction over housing finance and policy containing the following information:
11.18 	(1) the total number of applications for funding;
11.19 	(2) the amount of funding requested;
11.20 	(3) the amounts of funding awarded; and
11.21 	(4) the number of housing units that are affected by funding awards, including the number 
11.22 	of:
11.23 	(i) newly constructed owner-occupied units;
11.24 	(ii) renovated owner-occupied units;
11.25 	(iii) newly constructed rental units; and
11.26 	(iv) renovated rental units.
11.27 	(b) This reporting requirement applies to appropriations for competitive development 
11.28 	programs made in Laws 2023 and in subsequent laws.
11.29 	(c) By January 5 each year, the commissioner must report on the financial stability of 
11.30 	the affordable housing industry. The report must include:
12.1 	(1) the ratio of operating expenses to revenue in affordable rental housing projects; and
12.2 	(2) the percent of rents collected on time, divided into four regions of the state:
12.3 	(i) the cities of St. Paul and Minneapolis;
12.4 	(ii) the metropolitan counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and 
12.5 	Washington, except for the cities of St. Paul and Minneapolis;
12.6 	(iii) urban greater Minnesota, including the cities of Duluth, Mankato, Moorhead, 
12.7 	Rochester, and St. Cloud; and
12.8 	(iv) rural greater Minnesota, which includes all of Minnesota, except for the places listed 
12.9 	in items (i), (ii), and (iii).

12.10 	Sec. 2. Minnesota Statutes 2024, section 462A.07, is amended by adding a subdivision to 
12.11 	read:
12.12 		Subd. 21.Affordable housing annual meeting. At least once each year, the 
12.13 	commissioner must convene a meeting with the Interagency Council to End Homelessness 
12.14 	and the cities and counties with high levels of cost-burdened households, meaning those 
12.15 	where gross rent or homeownership costs are 30 percent or more of household income. The 
12.16 	purpose of the meeting is to discuss:
12.17 	(1) resources received by cities and counties;
12.18 	(2) regional needs for affordable housing; and
12.19 	(3) recommendations for the collaborative use of funds to effectively address 
12.20 	homelessness, housing insecurity, security of affordable housing, and the lack of housing 
12.21 	supply.

12.22 	Sec. 3. Minnesota Statutes 2024, section 462A.07, is amended by adding a subdivision to 
12.23 	read:
12.24 		Subd. 22.Local actions to support housing. (a) When assessing applications for funding 
12.25 	for any competitive development program, the commissioner shall award an additional point 
12.26 	or points to the applicant, not to exceed five percent of the total available points in a given 
12.27 	competitive development program, if the applicant's proposed project is located within a 
12.28 	jurisdiction that meets any of the following criteria:
12.29 	(1) the jurisdiction allows for the development of multifamily housing in at least 50 
12.30 	percent of the area within the jurisdiction zoned as a commercial district, excluding areas 
12.31 	covered by state or local shoreland regulations;
13.1 	(2) the jurisdiction allows for duplexes, accessory dwelling units, or townhomes within 
13.2 	50 percent of the area within the jurisdiction zoned for single-family housing, excluding 
13.3 	areas covered by state or local shoreland regulations;
13.4 	(3) the jurisdiction does not have parking mandates greater than one stall per unit of 
13.5 	housing for single-family housing;
13.6 	(4) the jurisdiction does not have parking mandates greater than one stall per unit of 
13.7 	housing for multifamily developments;
13.8 	(5) the jurisdiction does not mandate lot sizes larger than one-eighth of an acre for new 
13.9 	single-family home construction, excluding areas covered by state or local shoreland 
13.10 	regulations;
13.11 	(6) the jurisdiction does not place aesthetic mandates on new single-family construction, 
13.12 	including type of exterior finish materials, including siding; the presence of shutters, columns, 
13.13 	gables, decks, balconies, or porches; or minimum garage square footage, size, width, or 
13.14 	depth;
13.15 	(7) the jurisdiction has a density bonus for affordable housing that provides for an increase 
13.16 	in floor area and lot coverage if the housing is affordable housing; or
13.17 	(8) the jurisdiction has adopted an inclusionary zoning policy for the purpose of increasing 
13.18 	the supply of affordable housing.
13.19 	(b) The commissioner shall conduct community engagement when updating the scoring 
13.20 	criteria for competitive development programs, which shall include engagement with 
13.21 	organizations that represent municipalities and other housing organizations.

13.22 	EFFECTIVE DATE. This section is effective the day following final enactment and 
13.23 	applies to selection criteria and scoring systems developed on or after that day.

13.24 	Sec. 4. Laws 2023, chapter 37, article 1, section 2, subdivision 20, is amended to read:

13.25
13.26	Subd. 20.Community-Based First-Generation 
Homebuyers Down Payment Assistance
 		100,000,000
		-0-
	
13.27 	This appropriation is for a grant to Midwest 
13.28 	Minnesota Community Development 
13.29 	Corporation (MMCDC) to act as the 
13.30 	administrator of the community-based 
13.31 	first-generation homebuyers down payment 
13.32 	assistance program. The funds shall be 
14.1 	available to MMCDC for a three-year period 
14.2 	commencing with issuance of the funds to 
14.3 	MMCDC. At the expiration of that period, any 
14.4 	unused funds shall be remitted to the agency. 
14.5 	Any funds recaptured by MMCDC after the 
14.6 	expiration of that period shall be remitted to 
14.7 	the agency. Funds remitted to the agency 
14.8 	under this paragraph are appropriated to the 
14.9 	agency for administration of the 
14.10 	first-generation homebuyers down payment 
14.11 	assistance fund.

14.12 	Sec. 5. Laws 2023, chapter 37, article 2, section 9, is amended to read:
14.13 	Sec. 9. COMMUNITY-BASED FIRST-GENERATION HOMEBUYERS 
14.14 	ASSISTANCE PROGRAM.
 14.15 		Subdivision 1.Establishment. A community-based first-generation homebuyers down 
14.16 	payment assistance program is established as a pilot project program under the administration 
14.17 	of the Midwest Minnesota Community Development Corporation (MMCDC), a community 
14.18 	development financial institution (CDFI) as defined under the Riegle Community 
14.19 	Development and Regulatory Improvement Act of 1994, to provide targeted assistance to 
14.20 	eligible households homebuyers.
14.21 		Subd. 2.Eligible household homebuyer. For purposes of this section, "eligible 
14.22 	household" "eligible homebuyer" means a household an adult person:
14.23 	(1) whose income is at or below 100 percent of the area statewide median income at the 
14.24 	time of purchase application; and
14.25 	(2) that includes at least one adult member:
14.26 	(i) (2) who is preapproved for a first mortgage loan; and
14.27 	(ii) (3)(i) who either never owned a home or who owned a home but lost it due to 
14.28 	foreclosure; and
14.29 	(iii) (ii) whose parent or prior legal guardian either never owned a home or owned a 
14.30 	home but lost it due to foreclosure.
14.31 	At least one adult household member meeting the criteria under clause (2) The eligible 
14.32 	homebuyer must complete an approved homebuyer education course prior to signing a 
15.1 	purchase agreement and, following the purchase of the home, must occupy it as their primary 
15.2 	residence.
15.3 		Subd. 3.Use of funds. Assistance under this section is limited to ten percent of the 
15.4 	purchase price of a one or two unit home, not to exceed $32,000. Beginning in fiscal year 
15.5 	2027, the maximum amount of assistance may be increased to up to ten percent of the 
15.6 	median home sales price as reported in the previous year's Minnesota Realtors Annual 
15.7 	Report on the Minnesota Housing Market. Funds are reserved at the issuance of preapproval. 
15.8 	Reservation of funds is not contingent on having an executed purchase agreement. The 
15.9 	assistance must be provided in the form of a no-interest loan that is forgiven over five years,
15.10 	forgivable at a rate of 20 percent per year on the day after the anniversary date of the note, 
15.11 	with the final 20 percent forgiven on the down payment assistance loan maturity date. There 
15.12 	is no monthly pro rata or partial year credit. The loan has no monthly payment and does not 
15.13 	accrue interest. The prorated balance due is repayable if the property converts to nonowner 
15.14 	occupancy, is sold, is subjected to an ineligible refinance, is subjected to an unauthorized 
15.15 	transfer of title, or is subjected to a completed foreclosure action within the five-year loan 
15.16 	term. Recapture can be waived in the event of financial or personal hardship. MMCDC may 
15.17 	retain recaptured funds for assisting eligible homebuyers as provided in this section. Funds 
15.18 	may be used for closing costs, down payment, or principal reduction. The eligible household 
15.19 	may select any first mortgage lender or broker of their choice, provided that the funds are 
15.20 	used in conjunction with a conforming first mortgage loan that is fully amortizing and meets 
15.21 	the standards of a qualified mortgage or meets the minimum standards for exemption under 
15.22 	Code of Federal Regulations, title 12, section 1026.43. Funds may be used in conjunction 
15.23 	with other programs the eligible household may qualify for and the loan placed in any 
15.24 	priority position.
15.25 		Subd. 4.Administration. The community-based first-generation homebuyers down 
15.26 	payment assistance program is available statewide and shall be administered by MMCDC, 
15.27 	the designated central CDFI. MMCDC may originate and service funds and authorize other 
15.28 	CDFIs, Tribal entities, and nonprofit organizations administering down payment assistance 
15.29 	to reserve, originate, fund, and service funds for eligible households homebuyers. 
15.30 	Administrative costs must not exceed $3,200 per loan ten percent of the fiscal year 
15.31 	appropriation.
15.32 		Subd. 5.Report to legislature. By January 15 each year, the fund administrator, 
15.33 	MMCDC, must report to the chairs and ranking minority members of the legislative 
15.34 	committees with jurisdiction over housing finance and policy the following information:
15.35 	(1) the number and amount of loans closed;
16.1 	(2) the median loan amount;
16.2 	(3) the number and amount of loans issued by race or ethnic categories;
16.3 	(4) the median home purchase price;
16.4 	(5) the interest rates and types of mortgages;
16.5 	(6) the credit scores of both applicants and households served;
16.6 	(7) the total amount returned to the fund; and
16.7 	(8) the number and amount of loans issued by county.

16.8 	Sec. 6. POLICY FRAMEWORK FOR TARGETED STABILIZATION OF 
16.9 	REGULATED AFFORDABLE HOUSING.
 16.10 	(a) The commissioner of housing finance must work with affordable housing stakeholders, 
16.11 	including the Interagency Stabilization Group, to develop a policy framework for targeted 
16.12 	stabilization of affordable rental housing. In developing this framework, the commissioner 
16.13 	must identify:
16.14 	(1) strategies, tools, and funding mechanisms for targeted stabilization of affordable 
16.15 	rental housing and recapitalization of distressed properties;
16.16 	(2) potential improvements for regulatory relief for affordable rental housing providers 
16.17 	and implement these improvements where feasible;
16.18 	(3) a specific plan for relief when an operator of permanent housing cannot identify and 
16.19 	secure adequate service funding that matches the tenants' needs; and
16.20 	(4) a strategy with the commissioner of human services to integrate the awarding of state 
16.21 	service dollars to permanent supportive housing so that state service dollars can accompany 
16.22 	capital awards in the consolidated request for proposal process.
16.23 	(b) The commissioner must report quarterly to the Minnesota Housing Finance Agency 
16.24 	Board of Directors on the policy framework, improvements implemented, and any potential 
16.25 	changes to legislation that may be needed to support targeted stabilization of regulated 
16.26 	affordable housing and recapitalization of distressed properties.
16.27 	(c) By January 5, 2026, the commissioner must report to the chairs and ranking minority 
16.28 	members of the legislative committees having jurisdiction over housing finance and policy 
16.29 	on the policy framework, improvements implemented, and any potential changes to 
16.30 	legislation that may be needed to support targeted stabilization of regulated affordable 
16.31 	housing and recapitalization of distressed properties.

17.1 	Sec. 7. ACCESSIBLE HOUSING TASK FORCE.
 17.2 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
17.3 	the meanings given.
17.4 	(b) "Accessible housing" means housing that is designed, constructed, or modified to 
17.5 	enable persons with disabilities to live independently. Accessible housing may be made 
17.6 	accessible through design or additional features, such as modified bathrooms, cabinetry, 
17.7 	appliances, furniture, space, shelves, or cupboards that improve the overall ability of persons 
17.8 	with disabilities to function in the housing.
17.9 	(c) "Person with a disability" has the meaning given in Minnesota Statutes, section 
17.10 	256.481.
17.11 		Subd. 2.Establishment of task force. An Accessible Housing Task Force is established 
17.12 	to:
17.13 	(1) examine the housing experiences of persons with disabilities, including their 
17.14 	experiences seeking accessible housing or independent housing;
17.15 	(2) examine the practices of housing providers related to accessible housing and 
17.16 	independent housing and the issues preventing housing providers from providing accessible 
17.17 	housing or independent housing units to persons with disabilities; and
17.18 	(3) recommend legislation to increase the supply of safe and affordable, accessible 
17.19 	housing and independent housing units.
17.20 		Subd. 3.Membership. (a) The task force consists of the following members appointed 
17.21 	by the governor:
17.22 	(1) five persons with disabilities who have experienced a lack of accessible housing;
17.23 	(2) two parents of adult persons who have experienced a lack of affordable housing;
17.24 	(3) one representative of the Minnesota Council on Disability;
17.25 	(4) one representative of Arc Minnesota;
17.26 	(5) one representative of the Minnesota Consortium for Citizens with Disabilities;
17.27 	(6) one representative of the Minnesota Housing Finance Agency;
17.28 	(7) one representative of the Minnesota Department of Human Services;
17.29 	(8) one representative of the Minnesota Department of Health;
17.30 	(9) one staff person working for a housing stabilization services program;
18.1 	(10) one representative of a housing contractor who has built accessible housing;
18.2 	(11) one representative of a housing developer who has developed property that includes 
18.3 	accessible housing;
18.4 	(12) one representative of an organization or a local government agency that helps find 
18.5 	housing for people with disabilities;
18.6 	(13) one person aged 65 or older to represent aging seniors;
18.7 	(14) one member of the Minnesota Board on Aging; and
18.8 	(15) two representatives of organizations or groups who advocate for persons with 
18.9 	disabilities.
18.10 	(b) Appointments must be made no later than July 1, 2025, and must include 
18.11 	representatives of both the metropolitan area and greater Minnesota.
18.12 	(c) Task force members must serve without compensation, except for public members. 
18.13 	Members eligible for compensation must receive expenses as provided in Minnesota Statutes, 
18.14 	section 15.059, subdivision 6.
18.15 	(d) Vacancies must be filled by the governor consistent with the qualifications of the 
18.16 	vacating member required by this subdivision.
18.17 		Subd. 4.Meetings; officers. (a) The Minnesota Housing Finance Agency shall convene 
18.18 	the first meeting of the task force no later than August 15, 2025, and shall provide accessible 
18.19 	physical or virtual meeting space as necessary for the task force to conduct its work.
18.20 	(b) At its first meeting, the task force shall elect a chair and vice-chair from among the 
18.21 	task force members and may elect other officers as necessary.
18.22 	(c) The task force shall meet according to a schedule determined by the members or 
18.23 	upon the call of the task force's chair. The task force must meet as often as necessary to 
18.24 	accomplish the duties under subdivision 5.
18.25 	(d) Meetings of the task force are subject to Minnesota Statutes, chapter 13D.
18.26 		Subd. 5.Duties. (a) The task force must seek input from:
18.27 	(1) individuals who are experiencing or who have experienced the lack of affordable, 
18.28 	accessible housing;
18.29 	(2) providers of accessible housing; and
18.30 	(3) any other persons or organizations with experience or expertise in affordable, 
18.31 	accessible housing.
19.1 	(b) The task force must:
19.2 	(1) research and analyze how other states, cities, and counties address a lack of affordable, 
19.3 	accessible housing; and
19.4 	(2) develop recommendations to establish statewide education on affordable, accessible 
19.5 	housing to ensure that local units of government include affordable, accessible housing and 
19.6 	affordable housing policies in local planning.
19.7 		Subd. 6.Report. (a) No later than February 1, 2026, the task force shall submit an initial 
19.8 	report to the chairs and ranking minority members of the legislative committees and divisions 
19.9 	with jurisdiction over housing on the findings and recommendations of the task force for 
19.10 	improving the supply, quality, and affordability of accessible housing statewide.
19.11 	(b) No later than August 31, 2026, the task force shall submit a final report to the chairs 
19.12 	and ranking minority members of the legislative committees and divisions with jurisdiction 
19.13 	over housing on the findings and recommendations in paragraph (a).
19.14 		Subd. 7.Expiration. The task force expires the day following submission of the final 
19.15 	report under subdivision 6.

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

	ARTICLE 1	HOUSING BUDGET APPROPRIATIONS ........	Page.Ln 1.14	
	ARTICLE 2	BONDING AUTHORITY AND DEBT SERVICE APPROPRIATIONS........	Page.Ln 9.1	
	ARTICLE 3	HOUSING POLICY........	Page.Ln 11.12	

APPENDIX 

Repealed Minnesota Statutes: UES2298-2 

16A.287 TRANSFER; HOUSING SUPPORT.
In fiscal year 2025 and each year thereafter, the commissioner of management and budget must transfer $450,000 from the general fund to the housing support account, under section 462A.43. 

462A.43 HOUSING SUPPORT ACCOUNT.
The commissioner of management and budget shall establish the housing support account in the special revenue fund for the deposit of certain funds provided by law. Money appropriated from the account by law must provide housing support for Minnesotans.