HF 4253

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/26/2024 02:21pm

A bill for an act
relating to housing; establishing a first-time homebuyer down payment assistance
program; appropriating money; proposing coding for new law in Minnesota
Statutes, chapter 462A.

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

Section 1.

new text begin [462A.43] FIRST-TIME HOMEBUYER DOWN PAYMENT ASSISTANCE
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A first-time homebuyer down payment assistance program
is established. The Housing Finance Agency may partner with community organizations,
including community development financial institutions, credit unions, other financial
institutions, nonprofits, government entities, or federally recognized American Indian Tribes
or Tribally designated housing entities to assist eligible homebuyers.
new text end

new text begin Subd. 2. new text end

new text begin Eligible homebuyer. new text end

new text begin For the purposes of this section, "eligible homebuyer"
means a first-time homebuyer as defined by the Housing Finance Agency.
new text end

new text begin Subd. 3. new text end

new text begin Use of money. new text end

new text begin Assistance under this section may be provided as a forgivable
loan, a deferred loan, or a combination of both. Eligible homebuyers may use the money
to purchase a one- to four-unit home, including manufactured homes. Assistance is limited
to ten percent of the purchase price of a home or $20,000 per eligible first-time homebuyer,
whichever is lower. The money may be used for an interest rate buy-down of up to four
points or one percent. The money may not be combined with other homebuyer assistance
administered by the Housing Finance Agency and must be used in conjunction with a
conforming first mortgage loan that: (1) is fully amortizing, with or without interest, and
(2) meets the standard of a qualified mortgage or as otherwise determined by the agency.
new text end

new text begin Subd. 4. new text end

new text begin Repayment. new text end

new text begin Loans would be repayable if the property converts to nonowner
occupancy, is sold within the loan period, is subjected to an ineligible refinance, is subjected
to an unauthorized transfer of title, or for other reasons as stated in the loan documents.
Recapture may be waived in the event of financial or personal hardship at the discretion of
the Housing Finance Agency.
new text end

new text begin Subd. 5. new text end

new text begin Administration. new text end

new text begin The first-time homebuyer down payment assistance program
is available statewide and must be administered by the Housing Finance Agency. If the
agency works with a lending partner, that partner may use a percentage of the money received
for administrative fees as determined by the agency.
new text end

Sec. 2. new text begin APPROPRIATION; FIRST-TIME HOMEBUYER DOWN PAYMENT
ASSISTANCE PROGRAM.
new text end

new text begin $....... in fiscal year 2025 is appropriated from the general fund to the commissioner of
the Housing Finance Agency to operate the first-time homebuyer down payment assistance
program.
new text end