SF 2434

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/14/2025 09:33 a.m.

A bill for an act
relating to housing; modifying certain expenditure provisions of the housing
development fund; repealing certain allowed expenditures for the Minnesota
Housing Finance Agency; amending Minnesota Statutes 2024, sections 462A.20,
subdivisions 2, 3; 462A.21, subdivisions 10, 12a; repealing Minnesota Statutes
2024, section 462A.21, subdivisions 3b, 5, 23, 26.

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

Section 1.

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

Subd. 2.

Which money in fund.

There shall be paid into the housing development fund:

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

(2) any moneys which the agency receives in repayment of advances made from the
fund;

(3) any other moneys which may be made available to the agency for the purpose of the
fund from any other source or sources;

(4) all fees and charges collected by the agency;

(5) 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.

Sec. 2.

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

Subd. 3.

Separate accounts; transfers; limits.

Whenever any money is appropriated
new text begin from the housing development fund new text end 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 new text begin from the housing development fund
new text end 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 new text begin from the housing
development fund new text end prior to periodic distributions of earnings to separate accounts to be used
for the same purpose as the respective original appropriation. 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.

Sec. 3.

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

Subd. 10.

Certain appropriations available until expended.

Notwithstanding the
repeal of section 462A.26 and the provisions of section 16A.28 or any other law relating to
lapse of an appropriation, the appropriations made new text begin from the housing development fund new text end to
the agency by the legislature deleted text begin in 1976 and subsequent years deleted text end 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, after payment of the costs
and expenses necessary and incidental to the development and operation of the programs
authorized under this chapter.

Sec. 4.

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

Subd. 12a.

Program money transfer.

Unencumbered balances of money appropriated
new text begin from the housing development fund new text end 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.

Sec. 5. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2024, section 462A.21, subdivisions 3b, 5, 23, and 26, new text end new text begin are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 25-03920

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

Subd. 3b.

Capacity building grants.

It may make capacity building grants to nonprofit organizations, local government units, Indian tribes, and Indian tribal organizations to expand their capacity to provide affordable housing and housing-related services. The grants may be used to assess housing needs and to develop and implement strategies to meet those needs, including but not limited to the creation or preservation of affordable housing, prepurchase and postpurchase counseling and associated administrative costs, and the linking of supportive services to the housing. The agency shall adopt rules, policies, and procedures specifying the eligible uses of grant money. Funding priority may be given to those applicants that include low-income persons in their membership, have provided housing-related services to low-income people, and demonstrate a local commitment of local resources, which may include in-kind contributions.

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.

Subd. 23.

Rental housing.

The agency may spend money for the purposes of the rental housing program authorized under section 462A.2097, and may pay the costs and expenses necessary and incidental to the development and operation of the program.

Subd. 26.

Full cycle home ownership services.

The agency may spend money for the purposes of section 462A.209 and may pay the costs and expenses necessary and incidental to the development and operation of the program.