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SF 4394

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 03/19/2026 09:37 a.m.

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to housing; modifying housing provisions; modifying certain income
provisions; modifying eligible uses of certain housing aid funds; modifying housing
aggregate bond limitation; extending the deadline to spend certain housing aid
funds on particular eligible uses; making technical changes; amending Minnesota
Statutes 2024, sections 462A.40, subdivision 3; 474A.02, subdivision 1a; 477A.35,
subdivisions 4, 6; 477A.36, subdivisions 4, 5a, 6; Minnesota Statutes 2025
Supplement, sections 477A.35, subdivision 5; 477A.36, subdivision 5; proposing
coding for new law in Minnesota Statutes, chapter 462A.

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

Section 1.

Minnesota Statutes 2024, section 462A.40, subdivision 3, is amended to read:


Subd. 3.

Eligible recipients; definitions; restrictions; use of funds.

(a) The agency
may award a grant or a loan to any recipient that qualifies under subdivision 2. The agency
must not award a grant or a loan to a disqualified individual or disqualified business.

(b) For the purposes of this subdivision disqualified individual means:

(1) an individual who or an individual whose immediate family member made a
contribution to the account in the current or prior taxable year and received a credit certificate;

(2) an individual who or an individual whose immediate family member owns the housing
for which the grant or loan will be used;

(3) an individual who meets the following criteria:

(i) the individual is an officer or principal of a business entity; and

(ii) that business entity made a contribution to the account in the current or previous
taxable year and received a credit certificate; or

(4) an individual who meets the following criteria:

(i) the individual directly owns, controls, or holds the power to vote 20 percent or more
of the outstanding securities of a business entity; and

(ii) that business entity made a contribution to the account in the current or previous
taxable year and received a credit certificate.

(c) For the purposes of this subdivision disqualified business means a business entity
that:

(1) made a contribution to the account in the current or prior taxable year and received
a credit certificate;

(2) has an officer or principal who is an individual who made a contribution to the
account in the current or previous taxable year and received a credit certificate; or

(3) meets the following criteria:

(i) the business entity is directly owned, controlled, or is subject to the power to vote 20
percent or more of the outstanding securities by an individual or business entity; and

(ii) that controlling individual or business entity made a contribution to the account in
the current or previous taxable year and received a credit certificate.

(d) For purposes of this subdivision, "immediate family" means the taxpayer's spouse,
parent or parent's spouse, sibling or sibling's spouse, or child or child's spouse. For a married
couple filing a joint return, the limitations in this subdivision apply collectively to the
taxpayer and spouse.

(e) Before applying for a grant or loan, all recipients must sign a disclosure that the
disqualifications under this subdivision do not apply. The Minnesota Housing Finance
Agency must prescribe the form of the disclosure. The Minnesota Housing Finance Agency
may rely on the disclosure to determine the eligibility of recipients under paragraph (a).

(f) The agency may award grants or loans to a city as defined in section 462A.03,
subdivision 21; a federally recognized American Indian tribe or subdivision located in
Minnesota; a tribal housing corporation; a private developer; a nonprofit organization; a
housing and redevelopment authority under sections 469.001 to 469.047; a public housing
authority or agency authorized by law to exercise any of the powers granted by sections
469.001 to 469.047; or the owner of the housing. The provisions of subdivision 2, and
paragraphs (a) to (e) and (g) of this subdivision, regarding the use of funds and eligible
recipients apply to grants and loans awarded under this paragraph.

(g) new text begin Except for projects receiving funding under section 462A.39, new text end eligible recipients must
use the funds to serve households that meet the income limits as provided in section 462A.33,
subdivision 5
.

Sec. 2.

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

new text begin (c) The commissioner of human services must not consider wages earned from
lived-experience engagement as income or assets under section 256B.056, subdivision 1a,
paragraph (a); subdivision 3; or subdivision 3c, or for persons with eligibility determined
under section 256B.057, subdivision 3, 3a, or 3b.
new text end

Sec. 3.

Minnesota Statutes 2024, section 474A.02, subdivision 1a, is amended to read:


Subd. 1a.

Aggregate bond limitation.

"Aggregate bond limitation" means deleted text begin up to 55deleted text end new text begin the
greater of: (1) 30
new text end percent of the reasonably expected aggregate basis of a residential rental
project and the land on which the project is or will be locatednew text begin ; or (2) the maximum
supportable permanent amortizing debt, subject to a maximum of 40 percent of the reasonably
expected aggregate basis of a residential rental project and the land on which the project is
or will be located
new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027.
new text end

Sec. 4.

Minnesota Statutes 2024, section 477A.35, subdivision 4, is amended to read:


Subd. 4.

Qualifying projects.

(a) Qualifying projects include:

(1) emergency rental assistance for households earning less than 80 percent of area
median income as determined by the United States Department of Housing and Urban
Development;

(2) financial support to nonprofit affordable housing providers in their mission to provide
safe, dignified, affordable and supportive housing;

(3) projects designed for the purpose of construction, acquisition, rehabilitation,
demolition or removal of existing structures, construction financing, permanent financing,
interest rate reduction, refinancing, and gap financing of housing to provide affordable
housing to households that have incomes which do not exceed, for homeownership projects,
115 percent of the greater of state or area median income as determined by the United States
Department of Housing and Urban Development, and for rental housing projects, 80 percent
of the greater of state or area median income as determined by the United States Department
of Housing and Urban Development, except that the housing developed or rehabilitated
with funds under this section must be affordable to the local work force;

(4) financing the operations and management of financially distressed residential
properties;

(5) funding of supportive services or staff of supportive services providers for supportive
housing as defined by section 462A.37, subdivision 1. Financial support to nonprofit housing
providers to finance supportive housing operations may be awarded as a capitalized reserve
or as an award of ongoing funding; and

(6) deleted text begin costs of operatingdeleted text end emergency shelter deleted text begin facilitiesdeleted text end new text begin facility construction and operationsnew text end ,
including deleted text begin the costs of providing servicesdeleted text end new text begin service provisionnew text end .

(b) Recipients must prioritize projects that provide affordable housing to households
that have incomes which do not exceed, for homeownership projects, 80 percent of the
greater of state or area median income as determined by the United States Department of
Housing and Urban Development, and for rental housing projects, 50 percent of the greater
of state or area median income as determined by the United States Department of Housing
and Urban Development. Priority may be given to projects that: reduce disparities in home
ownership; reduce housing cost burden, housing instability, or homelessness; improve the
habitability of homes; create accessible housing; or create more energy- or water-efficient
homes.

(c) Gap financing is either:

(1) the difference between the costs of the property, including acquisition, demolition,
rehabilitation, and construction, and the market value of the property upon sale; or

(2) the difference between the cost of the property and the amount the targeted household
can afford for housing, based on industry standards and practices.

(d) If aid under this section is used for demolition or removal of existing structures, the
cleared land must be used for the construction of housing to be owned or rented by persons
who meet the income limits of paragraph (a).

(e) If an aid recipient uses the aid on new construction of a building containing more
than four units, the loan recipient must construct, convert, or otherwise adapt the building
to include:

(1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are
accessible units, and each accessible unit includes at least one roll-in shower, water closet,
and kitchen work surface meeting the requirements of section 1002 of the current State
Building Code Accessibility Provisions for Dwelling Units in Minnesota; and

(2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are
sensory-accessible units that include:

(A) soundproofing between shared walls for first and second floor units;

(B) no florescent lighting in units and common areas;

(C) low-fume paint;

(D) low-chemical carpet; and

(E) low-chemical carpet glue in units and common areas.

Nothing in this paragraph relieves a project funded by this section from meeting other
applicable accessibility requirements.

Sec. 5.

Minnesota Statutes 2025 Supplement, section 477A.35, subdivision 5, is amended
to read:


Subd. 5.

Use of proceeds.

(a) Any funds distributed under this section must be spent on
a qualifying projectnew text begin , as described in subdivision 4new text end . Funds are considered spent on a qualifying
project if:

(1) a tier I city or county demonstrates to the Minnesota Housing Finance Agency that
the city or county cannot expend funds on a qualifying project by the deleted text begin deadlinedeleted text end new text begin deadlinesnew text end
imposed by deleted text begin paragraph (b)deleted text end new text begin this subdivisionnew text end due to factors outside the control of the city or
county; and

(2) the funds are transferred to a local housing trust fund.

Funds transferred to a local housing trust fund under this paragraph must be spent on a
deleted text begin project or household that meets the affordability requirements of subdivision 4, paragraph
deleted text end deleted text begin (a)deleted text end new text begin qualifying project, as described in subdivision 4new text end .

(b) Funds must be deleted text begin spent by December 31 in the third year following the year after the
deleted text end deleted text begin aid was received. The requirements of this paragraph are satisfied if funds are:
deleted text end

deleted text begin (1)deleted text end committed to a qualifying project by December 31 deleted text begin indeleted text end new text begin ofnew text end the third year following the
year deleted text begin afterdeleted text end the aid was receiveddeleted text begin ;deleted text end and

deleted text begin (2)deleted text end expended by December 31 deleted text begin indeleted text end new text begin ofnew text end the fourth year following the year deleted text begin afterdeleted text end the aid was
received.

new text begin (c) Notwithstanding paragraph (b), aid that a tier I city or county will spend on a
qualifying affordable housing construction project under subdivision 4, paragraph (a), clause
(3), or a qualifying emergency shelter facility construction project under subdivision 4,
paragraph (a), clause (6), as documented in the most recent annual report submitted to the
Minnesota Housing Finance Agency under subdivision 6, must be committed to the project
by December 31 of the fifth year following the year the aid was received and expended by
December 31 of the sixth year following the year the aid was received.
new text end

deleted text begin (c)deleted text end new text begin (d)new text end An aid recipient may not use aid money to reimburse itself for prior expenditures.

deleted text begin (d)deleted text end new text begin (e)new text end Any program income generated from funds distributed under this section must
be used on a qualifying projectnew text begin , as described in subdivision 4new text end .

Sec. 6.

Minnesota Statutes 2024, section 477A.35, subdivision 6, is amended to read:


Subd. 6.

Administration.

(a) The commissioner of revenue must compute the amount
of aid payable to each tier I city and county under this section. By August 1 of each year,
the commissioner must certify the distribution factors of each tier I city and county to be
used in the following year. The commissioner must pay local affordable housing aid annually
at the times provided in section 477A.015, distributing the amounts available on the
immediately preceding June 1 under the accounts established in section 477A.37, subdivisions
2 and 3.

(b) Beginning in 2025, tier I cities and counties shall submit a report annually, no later
than December 1 of each year, to the Minnesota Housing Finance Agency. The report must
include documentation of the location of any unspent funds distributed under this section
and of qualifying projects completed or planned with funds under this section. If a tier I
city or county fails to submit a report, if a tier I city or county fails to spend funds deleted text begin within
the timeline
deleted text end new text begin by the deadlinesnew text end imposed under subdivision 5, deleted text begin paragraph (b),deleted text end if a tier I city or
county uses funds for a project that does not qualify under this section, or if a tier I city or
county fails to meet its requirements of subdivision 5a, the Minnesota Housing Finance
Agency shall notify the Department of Revenue and the cities and counties that must repay
funds under paragraph (c) by February 15 of the following year.

(c) By May 15, after receiving notice from the Minnesota Housing Finance Agency, a
tier I city or county must pay to the Minnesota Housing Finance Agency funds the city or
county received under this section if the city or county:

(1) fails to spend the funds deleted text begin within the time alloweddeleted text end new text begin by the deadlines imposednew text end under
subdivision 5deleted text begin , paragraph (b)deleted text end ;

(2) spends the funds on anything other than a qualifying project;

(3) fails to submit a report documenting use of the funds; or

(4) fails to meet the requirements of subdivision 5a.

(d) The commissioner of revenue must stop distributing funds to a tier I city or county
that requests in writing that the commissioner stop payment or that, in three consecutive
years, the Minnesota Housing Finance Agency has reported, pursuant to paragraph (b), to
have failed to use funds, misused funds, or failed to report on its use of funds. A request to
stop payment under this paragraph must be submitted to the commissioner in the form and
manner prescribed by the commissioner on or before May 1 of the aids payable year the
aid recipient wants the commissioner to stop payment of aid. The commissioner shall not
stop payment based on a request received after May 1 until the next aids payable year.

(e) The commissioner may resume distributing funds to a tier I city or county to which
the commissioner has stopped payments in the year following the August 1 after the
Minnesota Housing Finance Agency certifies that the city or county has submitted
documentation of plans for a qualifying project. The commissioner may resume distributing
funds to a tier I city or county to which the commissioner has stopped payments at the
request of the city or county in the year following the August 1 after the Minnesota Housing
Finance Agency certifies that the city or county has submitted documentation of plans for
a qualifying project.

(f) By June 1, any funds paid to the Minnesota Housing Finance Agency under paragraph
(c) must be deposited in the housing development fund. Funds deposited under this paragraph
are appropriated to the commissioner of the Minnesota Housing Finance Agency for use
on the family homeless prevention and assistance program under section 462A.204, the
economic development and housing challenge program under section 462A.33, and the
workforce and affordable homeownership development program under section 462A.38.

Sec. 7.

Minnesota Statutes 2024, section 477A.36, subdivision 4, is amended to read:


Subd. 4.

Qualifying projects.

(a) Qualifying projects shall include:

(1) emergency rental assistance for households earning less than 80 percent of area
median income as determined by the United States Department of Housing and Urban
Development;

(2) financial support to nonprofit affordable housing providers in their mission to provide
safe, dignified, affordable and supportive housing;

(3) outside the metropolitan counties as defined in section 473.121, subdivision 4,
development of market rate residential rental properties, as defined in section 462A.39,
subdivision 2
, paragraph (d), if the relevant unit of government submits with the report
required under subdivision 6 a resolution and supporting documentation showing that the
area meets the requirements of section 462A.39, subdivision 4, paragraph (a);

(4) projects designed for the purpose of construction, acquisition, rehabilitation,
demolition or removal of existing structures, construction financing, permanent financing,
interest rate reduction, refinancing, and gap financing of housing to provide affordable
housing to households that have incomes which do not exceed, for homeownership projects,
115 percent of the greater of state or area median income as determined by the United States
Department of Housing and Urban Development and, for rental housing projects, 80 percent
of the greater of state or area median income as determined by the United States Department
of Housing and Urban Development, except that the housing developed or rehabilitated
with funds under this section must be affordable to the local work force;

(5) financing the operations and management of financially distressed residential
properties;

(6) funding of supportive services or staff of supportive services providers for supportive
housing as defined in section 462A.37, subdivision 1. Financial support to nonprofit housing
providers to finance supportive housing operations may be awarded as a capitalized reserve
or as an award of ongoing funding; and

(7) deleted text begin costs of operatingdeleted text end emergency shelter deleted text begin facilitiesdeleted text end new text begin facility construction and operationsnew text end ,
including deleted text begin the costs of providing servicesdeleted text end new text begin service provisionnew text end .

(b) Recipients must prioritize projects that provide affordable housing to households
that have incomes that do not exceed, for homeownership projects, 80 percent of the greater
of state or area median income as determined by the United States Department of Housing
and Urban Development, and for rental housing projects, 50 percent of the greater of state
or area median income as determined by the United States Department of Housing and
Urban Development. Priority may be given to projects that: reduce disparities in home
ownership; reduce housing cost burden, housing instability, or homelessness; improve the
habitability of homes; create accessible housing; or create more energy- or water-efficient
homes.

(c) Gap financing is either:

(1) the difference between the costs of the property, including acquisition, demolition,
rehabilitation, and construction, and the market value of the property upon sale; or

(2) the difference between the cost of the property and the amount the targeted household
can afford for housing, based on industry standards and practices.

(d) If aid under this section is used for demolition or removal of existing structures, the
cleared land must be used for the construction of housing to be owned or rented by persons
who meet the income limits of paragraph (a).

(e) If an aid recipient uses the aid on new construction of a building containing more
than four units, the loan recipient must construct, convert, or otherwise adapt the building
to include:

(1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are
accessible units, and each accessible unit includes at least one roll-in shower, water closet,
and kitchen work surface meeting the requirements of section 1002 of the current State
Building Code Accessibility Provisions for Dwelling Units in Minnesota; and

(2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are
sensory-accessible units that include:

(A) soundproofing between shared walls for first and second floor units;

(B) no florescent lighting in units and common areas;

(C) low-fume paint;

(D) low-chemical carpet; and

(E) low-chemical carpet glue in units and common areas.

Nothing in this paragraph relieves a project funded by this section from meeting other
applicable accessibility requirements.

Sec. 8.

Minnesota Statutes 2025 Supplement, section 477A.36, subdivision 5, is amended
to read:


Subd. 5.

Use of proceeds.

(a) Any funds distributed under this section must be spent on
a qualifying projectnew text begin , as described in subdivision 4new text end . If a tier I city or county demonstrates to
the Minnesota Housing Finance Agency that the tier I city or county cannot expend funds
on a qualifying project by the deleted text begin deadlinedeleted text end new text begin deadlinesnew text end imposed by deleted text begin paragraph (b)deleted text end new text begin this subdivisionnew text end
due to factors outside the control of the tier I city or county, funds shall be considered spent
on a qualifying project if the funds are transferred to a local housing trust fund. Funds
transferred to a local housing trust fund must be spent on a deleted text begin project or household that meets
the affordability requirements of subdivision 4, paragraph (a)
deleted text end new text begin qualifying project, as described
in subdivision 4
new text end .

new text begin (b) If a Tribal Nation demonstrates to the Minnesota Housing Finance Agency that the
Tribal Nation cannot expend funds on a qualifying project by the deadline imposed by
paragraph (c) due to factors outside the control of the Tribal Nation, funds shall be considered
spent on a qualifying project if the funds are transferred to a Tribal housing fund overseen
by the Tribal Nation. Funds transferred to a Tribal housing fund must be spent on a qualifying
project, as described in subdivision 4.
new text end

deleted text begin (b)deleted text end new text begin (c)new text end Funds must be deleted text begin spent by December 31 in the third year following the year after
deleted text end deleted text begin the aid was received. The requirements of this paragraph are satisfied if funds are:
deleted text end

deleted text begin (1)deleted text end committed to a qualifying project by December 31 deleted text begin indeleted text end new text begin ofnew text end the third year following the
year deleted text begin afterdeleted text end the aid was receiveddeleted text begin ;deleted text end and

deleted text begin (2)deleted text end expended by December 31 deleted text begin indeleted text end new text begin ofnew text end the fourth year following the year deleted text begin afterdeleted text end the aid was
received.

new text begin (d) Notwithstanding paragraph (c), aid that a recipient will spend on a qualifying
affordable housing construction project under subdivision 4, paragraph (a), clause (4), or a
qualifying emergency shelter facility construction project under subdivision 4, paragraph
(a), clause (7), as documented in the most recent annual report submitted to the Minnesota
Housing Finance Agency under subdivision 6, must be committed to the project by December
31 of the fifth year following the year the aid was received and expended by December 31
of the sixth year following the year the aid was received.
new text end

deleted text begin (c)deleted text end new text begin (e)new text end An aid recipient may not use aid funds to reimburse itself for prior expenditures.

deleted text begin (d)deleted text end new text begin (f)new text end Any program income generated from funds distributed under this section must
be used on a qualifying projectnew text begin , as described in subdivision 4new text end .

Sec. 9.

Minnesota Statutes 2024, section 477A.36, subdivision 5a, is amended to read:


Subd. 5a.

Conditions for receipt.

(a) As a condition of receiving aid under this section,
a recipient must commit to using money to supplement, not supplant, existing locally funded
housing expenditures, so that the recipient is using the funds to create new or to expand
existing housing programs.

(b) In the annual report required under subdivision 6, anew text begin tier I city or countynew text end recipient
must certify compliance with this subdivision, including an accounting of locally funded
housing expenditures in the prior fiscal year. In deleted text begin an aiddeleted text end new text begin a tier I city or countynew text end recipient's first
report to the Minnesota Housing Finance Agency, the aid recipient must document its locally
funded housing expenditures in the two prior fiscal years. If a recipient reduces one of its
locally funded housing expenditures, the recipient must detail the expenditure, the amount
of the reduction, and the reason for the reduction. The certification required under this
paragraph must be made available publicly on the recipient's website.

Sec. 10.

Minnesota Statutes 2024, section 477A.36, subdivision 6, is amended to read:


Subd. 6.

Administration.

(a) The commissioner of revenue must compute the amount
of aid payable to each aid recipient under this section. Beginning with aids payable in
calendar year 2024, before computing the amount of aid for counties and after receiving
the report required by subdivision 3, paragraph (e), the commissioner shall compute the
amount necessary to increase the amount in the account or accounts established under that
paragraph to $1,250,000. The amount calculated under the preceding sentence shall be
deducted from the amount available to counties for the purposes of certifying the amount
of aid to be paid to counties in the following year. By August 1 of each year, the
commissioner must certify the amount to be paid to each tier I city and county in the
following year. The commissioner must pay statewide local housing aid to tier I cities and
counties annually at the times provided in section 477A.015. Before paying the first
installment of aid annually, the commissioner of revenue shall transfer to the Minnesota
Housing Finance Agency from the funds available for counties, for deposit in the account
or accounts established under subdivision 3, paragraph (e), the amount computed in the
prior year to be necessary to increase the amount in the account or accounts established
under that paragraph to $1,250,000.

(b) Beginning in 2025, aid recipients shall submit a report annually, no later than
December 1 of each year, to the Minnesota Housing Finance Agency. The report shall
include documentation of the location of any unspent funds distributed under this section
and of qualifying projects completed or planned with funds under this section. If an aid
recipient fails to submit a report, fails to spend funds deleted text begin within the timelinedeleted text end new text begin by the deadlinesnew text end
imposed under subdivision 5, deleted text begin paragraph (b),deleted text end uses funds for a project that does not qualify
under this section, or if an aid recipient fails to meet the requirements of subdivision 5a,
the Minnesota Housing Finance Agency shall notify the Department of Revenue and the
aid recipient must repay funds under paragraph (c) by February 15 of the following year.

(c) By May 15, after receiving notice from the Minnesota Housing Finance Agency, an
aid recipient must pay to the Minnesota Housing Finance Agency funds the aid recipient
received under this section if the aid recipient:

(1) fails to spend the funds deleted text begin within the time alloweddeleted text end new text begin by the deadlines imposednew text end under
subdivision 5deleted text begin , paragraph (b)deleted text end ;

(2) spends the funds on anything other than a qualifying project;

(3) fails to submit a report documenting use of the funds; or

(4) fails to meet the requirements of subdivision 5a.

(d) The commissioner of revenue must stop distributing funds to an aid recipient that
requests in writing that the commissioner stop payment or that the Minnesota Housing
Finance Agency reports to have, in three consecutive years, failed to use funds, misused
funds, or failed to report on its use of funds. A request to stop payment under this paragraph
must be submitted to the commissioner in the form and manner prescribed by the
commissioner on or before May 1 of the year prior to the aids payable year in which the
aid recipient wants the commissioner to stop payment of aid. The commissioner shall not
stop payment based on a request received after May 1 until aids payable based on certification
in the following calendar year.

(e) The commissioner may resume distributing funds to an aid recipient to which the
commissioner has stopped payments in the year following the August 1 after the Minnesota
Housing Finance Agency certifies that the city or county has submitted documentation of
plans for a qualifying project. The commissioner may resume distributing funds to an aid
recipient to which the commissioner has stopped payments at the request of the recipient
in the year following the August 1 after the Minnesota Housing Finance Agency certifies
that the recipient has submitted documentation of plans for a qualifying project.

(f) By June 1, any funds paid to the Minnesota Housing Finance Agency under paragraph
(c) must be deposited in the housing development fund. Funds deposited under this paragraph
are appropriated to the commissioner of the Minnesota Housing Finance Agency for use
on the family homeless prevention and assistance program under section 462A.204, the
economic development and housing challenge program under section 462A.33, and the
workforce and affordable homeownership development program under section 462A.38.

(g) An eligible Tribal Nation may choose to receive an aid distribution under this section
by submitting an application under this subdivision. An eligible Tribal Nation which has
not received a distribution in a prior aids payable year may elect to begin participation in
the program by submitting an application in the manner and form prescribed by the
commissioner of revenue by January 15 of the aids payable year. In order to receive a
distribution, an eligible Tribal Nation must certify to the commissioner of revenue the most
recent estimate of the total number of enrolled members of the eligible Tribal Nation. The
information must be annually certified by March 1 in the form prescribed by the
commissioner of revenue. The commissioner of revenue must annually calculate and certify
the amount of aid payable to each eligible Tribal Nation on or before August 1 of the aids
payable year. The commissioner of revenue must pay statewide local housing aid to eligible
Tribal Nations annually by December 27 of the year the aid is certified.