SF 4158

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 06/12/2024 10:11am

A bill for an act
relating to state government; appropriating money to the Minnesota Housing
Finance Agency; making policy, finance, and technical changes to housing
provisions; authorizing housing infrastructure bonds; requiring reports; amending
Minnesota Statutes 2022, sections 462A.02, subdivision 10; 462A.05, subdivisions
14a, 14b, 15, 15b, 21, 23; 462A.07, by adding a subdivision; 462A.21, subdivision
7; 462A.35, subdivision 2; 462A.37, by adding a subdivision; 462A.40, subdivisions
2, 3; 469.012, by adding a subdivision; Minnesota Statutes 2023 Supplement,
sections 462A.05, subdivisions 14, 45; 462A.22, subdivision 1; 462A.37,
subdivisions 2, 5; 462A.39, subdivision 2; 462A.395; Laws 2023, chapter 37,
article 1, section 2, subdivisions 2, 17, 25, 29, 32; article 2, section 12, subdivision
2; proposing coding for new law in Minnesota Statutes, chapter 462A; repealing
Laws 2023, chapter 37, article 2, section 13.

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

ARTICLE 1

HOUSING APPROPRIATIONS

Section 1. new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2024" and "2025" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively.
"The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium"
is fiscal years 2024 and 2025.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2024 new text end		new text begin 2025 new text end

Sec. 2. new text begin HOUSING FINANCE AGENCY new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin 63,025,000 new text end

new text begin (a) The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin (b) Unless otherwise specified, this
appropriation is for transfer to the housing
development fund for the programs specified
in this section.
new text end

new text begin Subd. 2. new text end new text begin Family Homeless Prevention new text end

new text begin -0- new text end

new text begin 8,804,000 new text end

new text begin This appropriation is for the family homeless
prevention and assistance program under
Minnesota Statutes, section 462A.204.
Notwithstanding procurement provisions
outlined in Minnesota Statutes, section
16C.06, subdivisions 1, 2, and 6, the agency
may award grants to existing program
grantees. This is a onetime appropriation.
new text end

new text begin Subd. 3. new text end new text begin Minnesota Homeless Study new text end

new text begin -0- new text end

new text begin 500,000 new text end

new text begin This appropriation is for a grant to the
Amherst H. Wilder Foundation for the
Minnesota homeless study. Notwithstanding
Minnesota Statutes, section 16B.98,
subdivision 14, the commissioner may use up
to one percent of this appropriation for
administrative costs. This is a onetime
appropriation.
new text end

new text begin Subd. 4. new text end new text begin Wilder Park Association Capital Repair Project new text end

new text begin -0- new text end

new text begin 3,250,000 new text end

new text begin This appropriation is for a grant to the Wilder
Park Association to assist with the cost of a
major capital repair project for the
rehabilitation of portions of the
owner-occupied senior high-rise facility.
Notwithstanding Minnesota Statutes, section
16B.98, subdivision 14, the commissioner may
use up to one percent of this appropriation for
administrative costs. This is a onetime
appropriation.
new text end

new text begin Subd. 5. new text end new text begin Housing Affordability Preservation Investment new text end

new text begin -0- new text end

new text begin 50,000,000 new text end

new text begin This appropriation is for the housing
affordability preservation investment program
under article 2, section 25. This is a onetime
appropriation.
new text end

new text begin Subd. 6. new text end new text begin Expediting Rental Assistance new text end

new text begin -0- new text end

new text begin 471,000 new text end

new text begin This appropriation is for the agency's work
under article 3 of this act. This is a onetime
appropriation.
new text end

Sec. 3. new text begin DEPARTMENT OF LABOR AND INDUSTRY new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin 225,000 new text end

new text begin This appropriation is for the single-exit
stairway apartment building report under
article 2, section 27. This is a onetime
appropriation.
new text end

Sec. 4.

Laws 2023, chapter 37, article 1, section 2, subdivision 17, is amended to read:

Subd. 17. Housing Infrastructure

100,000,000

deleted text begin 100,000,000 deleted text end new text begin 60,000,000 new text end

This appropriation is for the housing
infrastructure program for the eligible
purposes under Minnesota Statutes, section
462A.37, subdivision 2. This is a onetime
appropriation.

Sec. 5.

Laws 2023, chapter 37, article 1, section 2, subdivision 25, is amended to read:

Subd. 25. Manufactured Home Lending deleted text begin Grants deleted text end new text begin Program new text end

10,000,000

-0-

new text begin (a) new text end This appropriation is for deleted text begin the deleted text end new text begin a grant to
NeighborWorks Home Partners for a new text end
manufactured home lending deleted text begin grant deleted text end program.
This is a onetime appropriation.

new text begin (b) The funds must be used for new
manufactured home financing programs;
manufactured home down payment assistance;
or manufactured home repair, renovation,
removal, and site preparation financing
programs.
new text end

new text begin (c) Interest earned and repayments of principal
from loans issued under this subdivision must
be used for the purposes of this subdivision.
new text end

new text begin (d) For the purposes of this subdivision, the
term "manufactured home" has the meaning
given in Minnesota Statutes, section 327B.01,
subdivision 13.
new text end

Sec. 6.

Laws 2023, chapter 37, article 1, section 2, subdivision 29, is amended to read:

Subd. 29. Community Stabilization

45,000,000

deleted text begin 45,000,000 deleted text end new text begin 31,750,000 new text end

This appropriation is for the community
stabilization program. This a onetime
appropriation. Of this amount, $10,000,000 is
for a grant to AEON for Huntington Place.

Sec. 7. new text begin REPEALER.
new text end

new text begin Laws 2023, chapter 37, article 2, section 13, new text end new text begin is repealed.
new text end

ARTICLE 2

HOUSING POLICY

Section 1.

Minnesota Statutes 2022, section 462A.02, subdivision 10, is amended to read:

Subd. 10.

Energy deleted text begin conservation deleted text end new text begin decarbonization and climate resilience new text end .

It is further
declared that supplies of conventional energy resources are rapidly depleting in quantity
and rising in price and that the burden of these occurrences falls heavily upon the citizens
of Minnesota generally and persons of low and moderate income in particular. These
conditions are adverse to the health, welfare, and safety of all of the citizens of this state.
It is further declared that it is a public purpose to ensure the availability of financing to be
used by all citizens of the state, while giving preference to low and moderate income people,
to assist in the installation in their dwellings of reasonably priced energy conserving systems
including the use of alternative energy resources and equipment so that by the improvement
of the energy efficiency deleted text begin of deleted text end new text begin , clean energy, greenhouse gas emissions reduction, climate
resiliency, and other qualified projects for new text end all housing, the adequacy of the total energy
supply may be preserved for the benefit of all citizens.

Sec. 2.

Minnesota Statutes 2023 Supplement, section 462A.05, subdivision 14, is amended
to read:

Subd. 14.

Rehabilitation loans.

It may agree to purchase, make, or otherwise participate
in the making, and may enter into commitments for the purchase, making, or participation
in the making, of eligible loans for rehabilitation, with terms and conditions as the agency
deems advisable, to persons and families of low and moderate income, and to owners of
existing residential housing for occupancy by such persons and families, for the rehabilitation
of existing residential housing owned by them. Rehabilitation may include the addition or
rehabilitation of a detached accessory dwelling unit. The loans may be insured or uninsured
and may be made with security, or may be unsecured, as the agency deems advisable. The
loans may be in addition to or in combination with long-term eligible mortgage loans under
subdivision 3. They may be made in amounts sufficient to refinance existing indebtedness
secured by the property, if refinancing is determined by the agency to be necessary to permit
the owner to meet the owner's housing cost without expending an unreasonable portion of
the owner's income thereon. No loan for rehabilitation shall be made unless the agency
determines that the loan will be used primarily to make the housing more desirable to live
in, to increase the market value of the housing, for compliance with state, county or municipal
building, housing maintenance, fire, health or similar codes and standards applicable to
housing, or to accomplish energy deleted text begin conservation related improvements deleted text end new text begin decarbonization,
climate resiliency, and other qualified projects new text end . In unincorporated areas and municipalities
not having codes and standards, the agency may, solely for the purpose of administering
the provisions of this chapter, establish codes and standards. No loan under this subdivision
for the rehabilitation of owner-occupied housing shall be denied solely because the loan
will not be used for placing the owner-occupied residential housing in full compliance with
all state, county, or municipal building, housing maintenance, fire, health, or similar codes
and standards applicable to housing. Rehabilitation loans shall be made only when the
agency determines that financing is not otherwise available, in whole or in part, from private
lenders upon equivalent terms and conditions. Accessibility rehabilitation loans authorized
under this subdivision may be made to eligible persons and families without limitations
relating to the maximum incomes of the borrowers if:

(1) the borrower or a member of the borrower's family requires a level of care provided
in a hospital, skilled nursing facility, or intermediate care facility for persons with
developmental disabilities;

(2) home care is appropriate; and

(3) the improvement will enable the borrower or a member of the borrower's family to
reside in the housing.

The agency may waive any requirement that the housing units in a residential housing
development be rented to persons of low and moderate income if the development consists
of four or fewer dwelling units, one of which is occupied by the owner.

Sec. 3.

Minnesota Statutes 2022, section 462A.05, subdivision 14a, is amended to read:

Subd. 14a.

Rehabilitation loans; existing owner-occupied residential housing.

It may
make loans to persons and families of low and moderate income to rehabilitate or to assist
in rehabilitating existing residential housing owned and occupied by those persons or
families. Rehabilitation may include replacement of manufactured homes. No loan shall be
made unless the agency determines that the loan will be used primarily for rehabilitation
work necessary for health or safety, essential accessibility improvements, or to improve the
energy efficiency deleted text begin of deleted text end new text begin , clean energy, greenhouse gas emissions reductions, climate resiliency,
and other qualified projects in new text end the dwelling. No loan for rehabilitation of owner-occupied
residential housing shall be denied solely because the loan will not be used for placing the
residential housing in full compliance with all state, county or municipal building, housing
maintenance, fire, health or similar codes and standards applicable to housing. The amount
of any loan shall not exceed the lesser of (a) a maximum loan amount determined under
rules adopted by the agency not to exceed $37,500, or (b) the actual cost of the work
performed, or (c) that portion of the cost of rehabilitation which the agency determines
cannot otherwise be paid by the person or family without the expenditure of an unreasonable
portion of the income of the person or family. Loans made in whole or in part with federal
funds may exceed the maximum loan amount to the extent necessary to comply with federal
lead abatement requirements prescribed by the funding source. In making loans, the agency
shall determine the circumstances under which and the terms and conditions under which
all or any portion of the loan will be repaid and shall determine the appropriate security for
the repayment of the loan. Loans pursuant to this subdivision may be made with or without
interest or periodic payments.

Sec. 4.

Minnesota Statutes 2022, section 462A.05, subdivision 14b, is amended to read:

Subd. 14b.

Energy deleted text begin conservation deleted text end new text begin decarbonization and climate resiliency new text end loans.

It
may agree to purchase, make, or otherwise participate in the making, and may enter into
commitments for the purchase, making, or participating in the making, of loans to persons
and families, without limitations relating to the maximum incomes of the borrowers, to
assist in energy deleted text begin conservation rehabilitation measures deleted text end new text begin decarbonization, climate resiliency,
and other qualified projects new text end for existing housing owned by those persons or families
including, but not limited to: weatherstripping and caulking; chimney construction or
improvement; furnace or space heater repair, cleaning or replacement; central air conditioner
new text begin installation, new text end repair, maintenance, or replacement; air source or geothermal heat pump
new text begin installation, new text end repair, maintenance, or replacement; insulation; windows and doors; and
structural or other directly related repairs new text begin or installations new text end essential for energy deleted text begin conservation deleted text end new text begin
decarbonization, climate resiliency, and other qualified projects new text end . Loans shall be made only
when the agency determines that financing is not otherwise available, in whole or in part,
from private lenders upon equivalent terms and conditions. Loans under this subdivision
or subdivision 14 may:

(1) be integrated with a utility's on-bill repayment program approved under section
216B.241, subdivision 5d; and

(2) also be made for the installation of on-site solar energy or energy storage systems.

Sec. 5.

Minnesota Statutes 2022, section 462A.05, subdivision 15, is amended to read:

Subd. 15.

Rehabilitation grants.

(a) It may make grants to persons and families of low
and moderate income to pay or to assist in paying a loan made pursuant to subdivision 14,
or to rehabilitate or to assist in rehabilitating existing residential housing owned or occupied
by such persons or families. For the purposes of this section, persons of low and moderate
income include administrators appointed pursuant to section 504B.425, paragraph (d). No
grant shall be made unless the agency determines that the grant will be used primarily to
make the housing more desirable to live in, to increase the market value of the housing or
for compliance with state, county or municipal building, housing maintenance, fire, health
or similar codes and standards applicable to housing, or to accomplish energy deleted text begin conservation
related improvements deleted text end new text begin decarbonization, climate resiliency, or other qualified projects new text end . In
unincorporated areas and municipalities not having codes and standards, the agency may,
solely for the purpose of administering this provision, establish codes and standards. No
grant for rehabilitation of owner occupied residential housing shall be denied solely because
the grant will not be used for placing the residential housing in full compliance with all
state, county or municipal building, housing maintenance, fire, health or similar codes and
standards applicable to housing. The amount of any grant shall not exceed the lesser of (a)
$6,000, or (b) the actual cost of the work performed, or (c) that portion of the cost of
rehabilitation which the agency determines cannot otherwise be paid by the person or family
without spending an unreasonable portion of the income of the person or family thereon.
In making grants, the agency shall determine the circumstances under which and the terms
and conditions under which all or any portion thereof will be repaid and shall determine the
appropriate security should repayment be required.

(b) The agency may also make grants to rehabilitate or to assist in rehabilitating housing
under this subdivision to persons of low and moderate income for the purpose of qualifying
as foster parents.

Sec. 6.

Minnesota Statutes 2022, section 462A.05, subdivision 15b, is amended to read:

Subd. 15b.

Energy deleted text begin conservation deleted text end new text begin decarbonization and climate resiliency new text end grants.

(a)
It may make grants to assist in energy deleted text begin conservation rehabilitation measures deleted text end new text begin decarbonization,
climate resiliency, and other qualified projects new text end for existing owner occupied housing including,
but not limited to: insulation, storm windows and doors, furnace or space heater repair,
cleaning or replacement, chimney construction or improvement, weatherstripping and
caulking, deleted text begin and deleted text end structural or other directly related repairs new text begin , or installations new text end essential for energy
deleted text begin conservation deleted text end new text begin decarbonization, climate resiliency, and other qualified projects new text end . The grant to
any household shall not exceed $2,000.

(b) To be eligible for an emergency energy deleted text begin conservation deleted text end new text begin decarbonization and climate
resiliency new text end grant, a household must be certified as eligible to receive emergency residential
heating assistance under either the federal or the state program, and either (1) have had a
heating cost for the preceding heating season that exceeded 120 percent of the regional
average for the preceding heating season for that energy source as determined by the
commissioner of employment and economic development, or (2) be eligible to receive a
federal energy conservation grant, but be precluded from receiving the grant because of a
need for directly related repairs that cannot be paid for under the federal program. The
Housing Finance Agency shall make a reasonable effort to determine whether other state
or federal loan and grant programs are available and adequate to finance the intended
improvements. An emergency energy conservation grant may be made in conjunction with
grants or loans from other state or federal programs that finance other needed rehabilitation
work. The receipt of a grant pursuant to this section shall not affect the applicant's eligibility
for other Housing Finance Agency loan or grant programs.

Sec. 7.

Minnesota Statutes 2022, section 462A.05, subdivision 21, is amended to read:

Subd. 21.

Rental property loans.

The agency may make or purchase loans to owners
of rental property that is occupied or intended for occupancy primarily by low- and
moderate-income tenants and which does not comply with the standards established in
section 326B.106, subdivision 1, for the purpose of energy deleted text begin improvements deleted text end new text begin decarbonization,
climate resiliency, and other qualified projects new text end necessary to bring the property into full or
partial compliance with these standards. For property which meets the other requirements
of this subdivision, a loan may also be used for moderate rehabilitation of the property. The
authority granted in this subdivision is in addition to and not in limitation of any other
authority granted to the agency in this chapter. The limitations on eligible mortgagors
contained in section 462A.03, subdivision 13, do not apply to loans under this subdivision.
Loans for the improvement of rental property pursuant to this subdivision may contain
provisions that repayment is not required in whole or in part subject to terms and conditions
determined by the agency to be necessary and desirable to encourage owners to maximize
rehabilitation of properties.

Sec. 8.

Minnesota Statutes 2022, section 462A.05, subdivision 23, is amended to read:

Subd. 23.

Insuring financial institution loans.

The agency may participate in loans or
establish a fund to insure loans, or portions of loans, that are made by any banking institution,
savings association, or other lender approved by the agency, organized under the laws of
this or any other state or of the United States having an office in this state, to owners of
renter-occupied homes or apartments that do not comply with standards set forth in section
326B.106, subdivision 1, without limitations relating to the maximum incomes of the owners
or tenants. The proceeds of the insured portion of the loan must be used to pay the costs of
improvements, including all related structural and other improvements, that will reduce
energy consumption new text begin , that will decarbonize, and that will ensure the climate resiliency of
housing new text end .

Sec. 9.

Minnesota Statutes 2023 Supplement, section 462A.05, subdivision 45, is amended
to read:

Subd. 45.

Indian Tribes.

Notwithstanding any other provision in this chapter, at its
discretion the agency may make any federally recognized Indian Tribe in Minnesota, or
their associated Tribally Designated Housing Entity (TDHE) as defined by United States
Code, title 25, section 4103(22), eligible for new text begin agency new text end funding deleted text begin authorized under this chapter deleted text end .

Sec. 10.

Minnesota Statutes 2022, section 462A.07, is amended by adding a subdivision
to read:

new text begin Subd. 19. new text end

new text begin Eligibility for agency programs. new text end

new text begin The agency may determine that a household
or project unit meets the rent or income requirements for a program if the household or unit
receives or participates in income-based state or federal public assistance benefits, including
but not limited to:
new text end

new text begin (1) child care assistance programs under chapter 119B;
new text end

new text begin (2) general assistance, Minnesota supplemental aid, or food support under chapter 256D;
new text end

new text begin (3) housing support under chapter 256I;
new text end

new text begin (4) Minnesota family investment program and diversionary work program under chapter
256J; and
new text end

new text begin (5) economic assistance programs under chapter 256P.
new text end

Sec. 11.

Minnesota Statutes 2022, section 462A.21, subdivision 7, is amended to read:

Subd. 7.

Energy efficiency loans.

The agency may make loans to low and moderate
income persons who own existing residential housing for the purpose of improving the
deleted text begin efficient deleted text end energy deleted text begin utilization deleted text end new text begin decarbonization and climate resiliency new text end of the housing. Permitted
improvements shall include installation or upgrading of ceiling, wall, floor and duct
insulation, storm windows and doors, and caulking and weatherstripping. The improvements
shall not be inconsistent with the energy standards as promulgated as part of the State
Building Code; provided that the improvements need not bring the housing into full
compliance with the energy standards. Any loan for such purpose shall be made only upon
determination by the agency that such loan is not otherwise available, wholly or in part,
from private lenders upon equivalent terms and conditions. The agency may promulgate
rules as necessary to implement and make specific the provisions of this subdivision. The
rules shall be designed to permit the state, to the extent not inconsistent with this chapter,
to seek federal grants or loans for energy deleted text begin purposes deleted text end new text begin decarbonization, climate resiliency, and
other qualified projects new text end .

Sec. 12.

Minnesota Statutes 2023 Supplement, section 462A.22, subdivision 1, is amended
to read:

Subdivision 1.

Debt ceiling.

The aggregate principal amount of general obligation bonds
and notes which are outstanding at any time, excluding the principal amount of any bonds
and notes refunded by the issuance of new bonds or notes, shall not exceed the sum of
deleted text begin $5,000,000,000 deleted text end new text begin $7,000,000,000 new text end .

Sec. 13.

Minnesota Statutes 2022, section 462A.35, subdivision 2, is amended to read:

Subd. 2.

Expending funds.

The agency may expend the money in the Minnesota
manufactured home relocation trust fund to the extent necessary to carry out the objectives
of section 327C.095, subdivision 13, by making payments to manufactured home owners,
or other parties approved by the third-party neutral, under subdivision 13, paragraphs (a)
and (e), and to pay the costs of administering the fund. Money in the fund is appropriated
to the agency for these purposes and to the commissioner of deleted text begin management and budget deleted text end new text begin the
Minnesota Housing Finance Agency new text end to pay costs incurred by the commissioner of
deleted text begin management and budget deleted text end new text begin the Minnesota Housing Finance Agency new text end to administer the fund.

Sec. 14.

Minnesota Statutes 2023 Supplement, section 462A.37, subdivision 2, is amended
to read:

Subd. 2.

Authorization.

(a) The agency may issue up to $30,000,000 in aggregate
principal amount of housing infrastructure bonds in one or more series to which the payment
made under this section may be pledged. The housing infrastructure bonds authorized in
this subdivision may be issued to fund loans, or grants for the purposes of clauses (4) and
(7), on terms and conditions the agency deems appropriate, made for one or more of the
following purposes:

(1) to finance the costs of the construction, acquisition, and rehabilitation of supportive
housing for individuals and families who are without a permanent residence;

(2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned
housing to be used for affordable rental housing and the costs of new construction of rental
housing on abandoned or foreclosed property where the existing structures will be demolished
or removed;

(3) to finance that portion of the costs of acquisition of property that is attributable to
the land to be leased by community land trusts to low- and moderate-income home buyers;

(4) to finance the acquisition, improvement, and infrastructure of manufactured home
parks under section 462A.2035, subdivision 1b;

(5) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
of senior housing;

(6) to finance the costs of acquisition, rehabilitation, and replacement of federally assisted
rental housing and for the refinancing of costs of the construction, acquisition, and
rehabilitation of federally assisted rental housing, including providing funds to refund, in
whole or in part, outstanding bonds previously issued by the agency or another government
unit to finance or refinance such costs;

(7) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
of single-family housing; and

(8) to finance the costs of construction, acquisition, and rehabilitation of permanent
housing that is affordable to households with incomes at or below 50 percent of the area
median income for the applicable county or metropolitan area as published by the Department
of Housing and Urban Development, as adjusted for household size.

(b) Among comparable proposals for permanent supportive housing, preference shall
be given to permanent supportive housing for veterans and other individuals or families
who:

(1) either have been without a permanent residence for at least 12 months or at least four
times in the last three years; or

(2) are at significant risk of lacking a permanent residence for 12 months or at least four
times in the last three years.

(c) Among comparable proposals for senior housing, the agency must give priority to
requests for projects that:

(1) demonstrate a commitment to maintaining the housing financed as affordable to
senior households;

(2) leverage other sources of funding to finance the project, including the use of
low-income housing tax credits;

(3) provide access to services to residents and demonstrate the ability to increase physical
supports and support services as residents age and experience increasing levels of disability;
and

(4) include households with incomes that do not exceed 30 percent of the median
household income for the metropolitan area.

(d) To the extent practicable, the agency shall balance the loans made between projects
in the metropolitan area and projects outside the metropolitan area. Of the loans made to
projects outside the metropolitan area, the agency shall, to the extent practicable, balance
the loans made between projects in counties or cities with a population of 20,000 or less,
as established by the most recent decennial census, and projects in counties or cities with
populations in excess of 20,000.

(e) Among comparable proposals for permanent housing, the agency must give preference
to projects that will provide housing that is affordable to households at or below 30 percent
of the area median income.

(f) If a loan recipient uses the loan for new construction or substantial rehabilitation as
defined by the agency on 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, as defined by section 1002 of the current State Building Code Accessibility
Provisions for Dwelling Units in Minnesota, and include at least one roll-in shower new text begin in at
least one accessible unit as defined by section 1002 of the current State Building Code
Accessibility Provisions for Dwelling Units in Minnesota new text end ; 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 the agency from meeting other
applicable accessibility requirements.

Sec. 15.

Minnesota Statutes 2022, section 462A.37, is amended by adding a subdivision
to read:

new text begin Subd. 2j. new text end

new text begin Additional authorization. new text end

new text begin In addition to the amount authorized in subdivisions
2 to 2i, the agency may issue up to $50,000,000 in one or more series to which the payments
under this section may be pledged.
new text end

Sec. 16.

Minnesota Statutes 2023 Supplement, section 462A.37, subdivision 5, is amended
to read:

Subd. 5.

Additional appropriation.

(a) The agency must certify annually to the
commissioner of management and budget the actual amount of annual debt service on each
series of bonds issued under this section.

(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure
bonds issued under subdivision 2a, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a), not to exceed $6,400,000 annually. The amounts
necessary to make the transfers are appropriated from the general fund to the commissioner
of management and budget.

(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure
bonds issued under subdivision 2b, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a), not to exceed $800,000 annually. The amounts
necessary to make the transfers are appropriated from the general fund to the commissioner
of management and budget.

(d) Each July 15, beginning in 2019 and through 2040, if any housing infrastructure
bonds issued under subdivision 2c, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a), not to exceed $2,800,000 annually. The amounts
necessary to make the transfers are appropriated from the general fund to the commissioner
of management and budget.

(e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure
bonds issued under subdivision 2d, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(f) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure
bonds issued under subdivision 2e, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(g) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure
bonds issued under subdivision 2f, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(h) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure
bonds issued under subdivision 2g, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(i) Each July 15, beginning in 2023 and through 2044, if any housing infrastructure
bonds issued under subdivision 2h, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

new text begin (j) Each July 15, beginning in 2026 and through 2047, if any housing infrastructure
bonds issued under subdivision 2j, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.
new text end

deleted text begin (j) deleted text end new text begin (k) new text end The agency may pledge to the payment of the housing infrastructure bonds the
payments to be made by the state under this section.

Sec. 17.

Minnesota Statutes 2023 Supplement, section 462A.39, subdivision 2, is amended
to read:

Subd. 2.

Definitions.

(a) For purposes of this section, the following terms have the
meanings given.

(b) "Eligible project area" means a home rule charter or statutory city located outside
of a metropolitan county as defined in section 473.121, subdivision 4 deleted text begin , with a population
exceeding 500; a community that has a combined population of 1,500 residents located
within 15 miles of a home rule charter or statutory city located outside a metropolitan county
as defined in section 473.121, subdivision 4 deleted text end ; federally recognized Tribal reservations; or
an area served by a joint county-city economic development authority.

(c) "Joint county-city economic development authority" means an economic development
authority formed under Laws 1988, chapter 516, section 1, as a joint partnership between
a city and county and excluding those established by the county only.

(d) "Market rate residential rental properties" means properties that are rented at market
value, including new modular homes, new manufactured homes, and new manufactured
homes on leased land or in a manufactured home park, and may include rental developments
that have a portion of income-restricted units.

(e) "Qualified expenditure" means expenditures for market rate residential rental
properties including acquisition of property; construction of improvements; and provisions
of loans or subsidies, grants, interest rate subsidies, public infrastructure, and related financing
costs.

Sec. 18.

Minnesota Statutes 2023 Supplement, section 462A.395, is amended to read:

462A.395 GREATER MINNESOTA HOUSING INFRASTRUCTURE GRANT
PROGRAM.

Subdivision 1.

Grant program established.

The commissioner of the Minnesota Housing
Finance Agency may make grants to new text begin counties and new text end cities to provide up to 50 percent of the
capital costs of public infrastructure necessary for an eligible workforce housing development
project. The commissioner may make a grant award only after determining that nonstate
resources are committed to complete the project. The nonstate contribution may be cash,
other committed grant funds, or in kind. In-kind contributions may include the value of the
site, whether the site is prepared before or after the law appropriating money for the grant
is enacted.

Subd. 2.

Definitions.

(a) For the purposes of this section, the following terms have the
meanings given.

(b) "City" means a statutory or home rule charter city located outside the metropolitan
area, as defined in section 473.121, subdivision 2.

(c) "Housing infrastructure" means publicly owned physical infrastructure necessary to
support housing development projects, including but not limited to sewers, water supply
systems, utility extensions, streets, wastewater treatment systems, stormwater management
systems, and facilities for pretreatment of wastewater to remove phosphorus.

Subd. 3.

Eligible projects.

Housing projects eligible for a grant under this section may
be a single-family or multifamily housing development, and either owner-occupied or rental. new text begin
Housing projects eligible for a grant under this section may also be a manufactured home
development qualifying for homestead treatment under section 273.124, subdivision 3a.
new text end

Subd. 4.

Application.

(a) The commissioner must develop forms and procedures for
soliciting and reviewing applications for grants under this section. At a minimum, a city new text begin or
county new text end must include in its application a resolution of the new text begin county board or new text end city council
certifying that the required nonstate match is available. The commissioner must evaluate
complete applications for funding for eligible projects to determine that:

(1) the project is necessary to increase sites available for housing development that will
provide adequate housing stock for the current or future workforce; and

(2) the increase in workforce housing will result in substantial public and private capital
investment in the new text begin county or new text end city in which the project would be located.

(b) The determination of whether to make a grant for a site is within the discretion of
the commissioner, subject to this section. The commissioner's decisions and application of
the criteria are not subject to judicial review, except for abuse of discretion.

Subd. 5.

Maximum grant amount.

A new text begin county or new text end city may receive no more than deleted text begin $30,000 deleted text end new text begin
$40,000 new text end per lot for single-family, duplex, triplex, or fourplex housing developed new text begin , no more
than $60,000 per manufactured housing lot, new text end and no more than $180,000 per lot for
multifamily housing with more than four units per building. A new text begin county or new text end city may receive
no more than $500,000 in two years for one or more housing developments. new text begin The $500,000
limitation does not apply to use on manufactured housing developments.
new text end

Sec. 19.

Minnesota Statutes 2022, section 462A.40, subdivision 2, is amended to read:

Subd. 2.

Use of funds; grant and loan program.

(a) The agency may award grants and
loans to be used for multifamily and single family developments for persons and families
of low and moderate income. Allowable use of the funds include: gap financing, as defined
in section 462A.33, subdivision 1; new construction; acquisition; rehabilitation; demolition
or removal of existing structures; construction financing; permanent financing; interest rate
reduction; and refinancing.

(b) The agency may give preference for grants and loans to comparable proposals that
include regulatory changes or waivers that result in identifiable cost avoidance or cost
reductions, including but not limited to increased density, flexibility in site development
standards, or zoning code requirements.

deleted text begin (c) The agency shall separately set aside:
deleted text end

deleted text begin (1) at least ten percent of the financing under this section for housing units located in a
township or city with a population of 2,500 or less that is located outside the metropolitan
area, as defined in section 473.121, subdivision 2;
deleted text end

deleted text begin (2) at least 35 percent of the financing under this section for housing for persons and
families whose income is 50 percent or less of the area median income for the applicable
county or metropolitan area as published by the Department of Housing and Urban
Development, as adjusted for household size; and
deleted text end

deleted text begin (3) at least 25 percent of the financing under this section for single-family housing.
deleted text end

deleted text begin (d) If by September 1 of each year the agency does not receive requests to use all of the
amounts set aside under paragraph (c), the agency may use any remaining financing for
other projects eligible under this section.
deleted text end

Sec. 20.

Minnesota Statutes 2022, section 462A.40, subdivision 3, is amended to read:

Subd. 3.

Eligible recipients; definitions; restrictions; use of funds.

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

(b) For the purposes of this subdivision disqualified individual means deleted text begin an individual who deleted text end :

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

(2) new text begin an individual who or an individual whose immediate family member new text end owns the housing
for which the grant or loan will be used deleted text begin and is using that housing as their domicile deleted text end ;

(3) new text begin an individual who new text end 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) new text begin an individual who new text end meets the following criteria:

(i) the individual new text begin directly new text end 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 new text begin directly new text end 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) deleted text begin The disqualifications in paragraphs (b) and (c) apply if the taxpayer would be
disqualified either individually or in combination with one or more members of the taxpayer's
family, as defined in the Internal Revenue Code, section 267(c)(4). deleted text end new text begin 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. new text end For a married couple filing a joint
return, the limitations in this deleted text begin paragraph deleted text end new text begin subdivision new text end apply collectively to the taxpayer and
spouse. deleted text begin For purposes of determining the ownership interest of a taxpayer under paragraph
(a), clause (4), the rules under sections 267(c) and 267(e) of the Internal Revenue Code
apply.
deleted text end

(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. new text begin The Minnesota Housing Finance Agency
may rely on the disclosure to determine the eligibility of recipients under paragraph (a).
new text end

(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) deleted text begin Except for the set-aside provided in subdivision 2, paragraph (d), deleted 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. 21.

Minnesota Statutes 2022, section 469.012, is amended by adding a subdivision
to read:

new text begin Subd. 14. new text end

new text begin Assistance to preserve naturally occurring affordable housing. new text end

new text begin An authority
may provide financial assistance of any kind, including but not limited to grants, loans,
forgivable loans, payment of interest, interest rate reduction, issuance of bonds and the
spending of the proceeds of the bonds, to assist with the capital repair or replacement of an
asset or category of assets with a regular life span in excess of 25 years and with a project
cost in excess of $5,000,000, where: (1) the capital repair project is in a multifamily housing
building, whether owner-occupied or rental; (2) at least 25 percent of the units were sold
or are rented to households meeting low-income requirements set by the United States
Department of Housing and Urban Development; and (3) more than 25 years has elapsed
since the asset or category of assets has been repaired or replaced. In the case of a common
interest community, the assistance authorized herein may be provided whether or not the
assets being repaired or replaced are owned by the individual unit owners or by the common
interest community of which the individual unit owners are part of the membership, and
may be provided to the common interest community or to individual unit owners, or both.
new text end

Sec. 22.

Laws 2023, chapter 37, article 1, section 2, subdivision 2, is amended to read:

Subd. 2. Challenge Program

60,425,000

60,425,000

(a) This appropriation is for the economic
development and housing challenge program
under Minnesota Statutes, sections 462A.33
and 462A.07, subdivision 14.

(b) Of this amount, $6,425,000 each year shall
be made available during the first 11 months
of the fiscal year exclusively for housing
projects for American Indians. Any funds not
committed to housing projects for American
Indians within the annual consolidated request
for funding processes may be available for
any eligible activity under Minnesota Statutes,
sections 462A.33 and 462A.07, subdivision
14.

(c) Of the amount in the first year, $5,000,000
is for a grant to Urban Homeworks to expand
initiatives pertaining to deeply affordable
homeownership in Minneapolis neighborhoods
with over 40 percent of residents identifying
as Black, Indigenous, or People of Color and
at least 40 percent of residents making less
than 50 percent of the area median income.
The grant is to be used for acquisition,
rehabilitation, new text begin gap financing as defined in
Minnesota Statutes, section 462A.33,
subdivision 1, new text end and construction of homes to
be sold to households with incomes deleted text begin of 50 to deleted text end new text begin
at or below new text end 60 percent of the area median
income. This is a onetime appropriation deleted text begin , and
is available until June 30, 2027 deleted text end . By December
15 each year deleted text begin until 2027 deleted text end , Urban Homeworks
must submit a report to the chairs and ranking
minority members of the legislative
committees having jurisdiction over housing
finance and policy. The report must include
the amount used for (1) acquisition, (2)
rehabilitation, and (3) construction of housing
units, along with the number of housing units
acquired, rehabilitated, or constructed, and the
amount of the appropriation that has been
spent. If any home was sold or transferred
within the year covered by the report, Urban
Homeworks must include the price at which
the home was sold, as well as how much was
spent to complete the project before sale.

(d) Of the amount in the first year, $2,000,000
is for a grant to Rondo Community Land
Trust. This is a onetime appropriation.

(e) The base for this program in fiscal year
2026 and beyond is $12,925,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 23.

Laws 2023, chapter 37, article 1, section 2, subdivision 32, is amended to read:

Subd. 32. Northland Foundation

1,000,000

-0-

This appropriation is for a grant to Northland
Foundation for use on expenditures authorized
under Minnesota Statutes, section 462C.16,
subdivision 3 new text begin , to assist and support
communities in providing housing locally, new text end and
deleted text begin on deleted text end new text begin for new text end assisting local governments to establish
local or regional housing trust funds.
Northland Foundation may award grants and
loans to other entities to expend on authorized
expenditures under this section. This
appropriation is onetime and available until
June 30, 2025.

Sec. 24.

Laws 2023, chapter 37, article 2, section 12, subdivision 2, is amended to read:

Subd. 2.

Eligible homebuyer.

For the purposes of this section, an "eligible homebuyer"
means an individual:

(1) whose income is at or below 130 percent of area median income;

deleted text begin (2) who resides in a census tract where at least 60 percent of occupied housing units are
renter-occupied, based on the most recent estimates or experimental estimates provided by
the American Community Survey of the United States Census Bureau;
deleted text end

deleted text begin (3) deleted text end new text begin (2) new text end who is financing the purchase of an eligible property with an interest-free,
fee-based mortgage; and

deleted text begin (4) deleted text end new text begin (3) new text end who is a first-time homebuyer as defined by Code of Federal Regulations, title
24, section 92.2.

Sec. 25. new text begin HOUSING AFFORDABILITY PRESERVATION INVESTMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of the Minnesota Housing Finance
Agency must establish and administer a grant program to support recapitalization of distressed
buildings.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin For purposes of this section:
new text end

new text begin (1) "distressed building" means an existing rental housing building in which the units
are restricted to households at or below 60 percent of the area median income, and:
new text end

new text begin (i) is in foreclosure proceedings;
new text end

new text begin (ii) has two or more years of negative net operating income;
new text end

new text begin (iii) has two or more years with a debt service coverage ratio of less than one; or
new text end

new text begin (iv) has necessary costs of repair, replacement, or maintenance that exceed the project
reserves available for those purposes; and
new text end

new text begin (2) "recapitalization" means financing for the physical and financial needs of a distressed
building, including restructuring and forgiveness of amortizing and deferred debt, principal
and interest paydown, interest rate write-down, deferral of debt payments, mortgage payment
forbearance, deferred maintenance, security services, property insurance, capital
improvements, funding of reserves for supportive services, and property operations.
new text end

new text begin Subd. 3. new text end

new text begin Grant program. new text end

new text begin The commissioner must use a request for proposal process
to consider funding requests and award grants to finance recapitalization of distressed
buildings. In awarding grants, the commissioner must give priority to distressed buildings
most at risk of losing affordable housing, to the extent practicable.
new text end

new text begin Subd. 4. new text end

new text begin Report. new text end

new text begin By February 1, 2025, and November 30, 2025, the commissioner shall
submit a report to the chairs and ranking minority members of the legislative committees
having jurisdiction over housing and homelessness. The report must detail the number of
applications received, the amount of funding requested, the grants awarded, and the number
of affordable housing units preserved through awards under this section.
new text end

Sec. 26. new text begin REPORT ON RENTAL HOUSING PROGRAMS.
new text end

new text begin The commissioner of the Minnesota Housing Finance Agency must review the financial
impacts of the low-income rental property tax classification in Minnesota Statutes, section
273.128, and the low-income housing tax credit program under section 42 of the Internal
Revenue Code, including the extent of rent increases and housing related expenses. By
December 15, 2024, the commissioner must report on the findings and recommendations
for legislative changes to the chairs and ranking minority members of the legislative
committees with jurisdiction over human services, housing finance, and taxes. The
commissioner must use existing financial resources for this review and report.
new text end

Sec. 27. new text begin SINGLE-EXIT STAIRWAY APARTMENT BUILDING REPORT.
new text end

new text begin The commissioner of labor and industry must evaluate conditions under which single-exit
stairway apartment buildings above three stories up to 75 feet, would achieve life safety
outcomes equal to or superior to currently adopted codes, including those for multifamily
buildings with very large footprints and single-family houses. The commissioner must use
research techniques that include smoke modeling, egress modeling, an analysis of fire loss
history in jurisdictions that have already adopted similar provisions, and interviews with
fire services regarding fire suppression and rescue techniques in such buildings. The
commissioner shall consult with relevant stakeholders, including but not limited to the
Minnesota Fire Chiefs Association, Minnesota Professional Firefighters Association,
Association of Minnesota Building Officials, Housing First Minnesota, Center for Building
in North America, and faculty from the relevant department of a university which grants
degrees in fire protection engineering. The commissioner may contract with external experts
or an independent third party to develop the report and perform other functions required of
the commissioner under this section. By December 31, 2025, the commissioner must report
on the findings to the chairs and ranking minority members of the legislative committees
with jurisdiction over housing and state building codes.
new text end

Sec. 28. new text begin REPORT TO THE LEGISLATURE.
new text end

new text begin By January 15 each year, the commissioner of the Minnesota Housing Finance Agency
must submit a report to the chairs and ranking minority members of the legislative committees
having jurisdiction over housing finance and policy containing the following information:
new text end

new text begin (1) the total number of applications for funding;
new text end

new text begin (2) the amount of funding requested;
new text end

new text begin (3) the amounts of funding awarded; and
new text end

new text begin (4) the number of housing units that are affected by funding awards, including the number
of:
new text end

new text begin (i) newly constructed owner-occupied units;
new text end

new text begin (ii) renovated owner-occupied units;
new text end

new text begin (iii) newly constructed rental units; and
new text end

new text begin (iv) renovated rental units.
new text end

Sec. 29. new text begin REVISOR INSTRUCTION.
new text end

new text begin The revisor of statutes shall renumber Minnesota Statutes, section 462A.37, subdivision
2i, as Minnesota Statutes, section 462A.37, subdivision 3a. The revisor shall also make
necessary cross-reference changes in Minnesota Statutes.
new text end

ARTICLE 3

EXPEDITING RENTAL ASSISTANCE

Section 1.

new text begin [462A.2096] ANNUAL PROJECTION OF EMERGENCY RENTAL
ASSISTANCE NEEDS.
new text end

new text begin The agency must develop a projection of emergency rental assistance needs in
consultation with the commissioner of human services and representatives from county and
Tribal housing administrators and housing nonprofit agencies. The projection must identify
the amount of funding required to meet all emergency rental assistance needs, including
the family homelessness prevention and assistance program, the emergency assistance
program, and emergency general assistance. By January 15 each year, the commissioner
must submit a report on the projected need for emergency rental assistance to the chairs and
ranking minority members of the legislative committees having jurisdiction over housing
and human services finance and policy.
new text end

Sec. 2. new text begin DATA COLLECTION TO MEASURE TIMELINESS OF RENTAL
ASSISTANCE.
new text end

new text begin The commissioner of the Minnesota Housing Finance Agency must work with the
commissioner of human services to develop criteria for measuring the timeliness of
processing applications for rental assistance. The commissioner of the Minnesota Housing
Finance Agency must collect data to monitor application speeds of the family homelessness
prevention and assistance program and use the collected data to inform improvements to
application processing systems. By January 15, 2027, the commissioner of the Minnesota
Housing Finance Agency must submit a report to the chairs and ranking minority members
of the legislative committees having jurisdiction over housing finance and policy. The report
must include analysis of the data collected and whether goals have been met to (1) process
an emergency rental assistance application within two weeks of the receipt of a complete
application, and (2) if approved, make payment to a landlord within 30 days of the receipt
of a complete application.
new text end

Sec. 3. new text begin E-SIGNATURE OPTIONS FOR RENTAL ASSISTANCE.
new text end

new text begin The commissioner of the Minnesota Housing Finance Agency, working with the
commissioner of human services, shall develop uniform e-signature options to be used in
applications for the family homelessness prevention and assistance program. No later than
June 30, 2026, the commissioner shall require administrators of the family homelessness
prevention and assistance program to incorporate and implement the developed e-signature
options. The commissioner must notify the chairs and ranking minority members of the
legislative committees with jurisdiction over housing of the date when the e-signature options
are implemented.
new text end

Sec. 4. new text begin VERIFICATION PROCEDURES FOR RENTAL ASSISTANCE.
new text end

new text begin (a) The commissioner of the Minnesota Housing Finance Agency, working with program
administrators, must develop recommendations to simplify the process of verifying
information in applications for the family homelessness prevention and assistance program.
In developing recommendations, the commissioner must consider:
new text end

new text begin (1) allowing self-attestation of emergencies, assets, and income;
new text end

new text begin (2) allowing verbal authorization by applicants to allow emergency rental assistance
administrators to communicate with landlords and utility providers regarding applications
for assistance; and
new text end

new text begin (3) allowing landlords to apply for emergency rental assistance on tenants' behalf.
new text end

new text begin (b) The commissioner must:
new text end

new text begin (1) prepare recommendations by January 1, 2025;
new text end

new text begin (2) adopt any recommendations by July 1, 2025; and
new text end

new text begin (3) provide technical assistance to counties, Tribes, and other emergency rental assistance
administrators to implement these recommendations.
new text end

new text begin (c) By January 13, 2025, the commissioner must report to the chairs and ranking minority
members of the legislative committees with jurisdiction over housing detailing the proposed
recommendations required by this section. By July 7, 2025, the commissioner must report
to the chairs and ranking minority members of the legislative committees with jurisdiction
over housing detailing the recommendations adopted as required by this section.
new text end

APPENDIX

Repealed Minnesota Session Laws: S4158-1

Laws 2023, chapter 37, article 2, section 13 by Laws 2024, chapter 127, article 14, section 13

Subd. 2.

Eligible services.

The commissioner may award a grant under this section to an organization providing lending funds for the following services:

(1) new manufactured home financing programs;

(2) manufactured home down payment assistance; or

(3) manufactured home repair, renovation, removal, and site preparation financing programs.

Subd. 3.

Eligible organization.

To be eligible for a grant under this section, a nonprofit organization must:

(1) qualify for tax exempt status under United States Code, title 26, section 501(c)(3);

(2) have primary operations located in Minnesota;

(3) be a qualified nonprofit lender or certified as a community development financial institution by the United States Department of the Treasury; and

(4) serve low-income populations in manufactured home communities owned by residents, cooperatives, nonprofits, or municipalities.

Subd. 4.

Commissioner duties.

The commissioner shall develop the forms, applications, and reporting requirements for use by eligible organizations. In developing these materials, the commissioner shall consult with manufactured housing cooperatives, resident-owned manufactured home communities, and nonprofit organizations working with manufactured housing cooperatives and resident-owned communities.

Subd. 5.

Loan payments and interest.

Interest earned and repayments of principal from loans issued under this section must be used for the purposes of this section.