HF 2445

1st Engrossment - 94th Legislature (2025 - 2026) Posted on 04/21/2025 12:39pm

A bill for an act
relating to housing; establishing a budget for the Minnesota Housing Finance
Agency; authorizing the issuance of housing infrastructure bonds; establishing an
Accessible Housing Task Force; modifying the community-based first-generation
homebuyers down payment assistance program; providing for the creation of a
policy framework for targeted stabilization of regulated affordable housing;
repealing housing support account in special revenue fund; requiring reports;
transferring money; appropriating money; amending Minnesota Statutes 2024,
sections 462A.07, subdivision 19, by adding subdivisions; 462A.37, subdivision
5, by adding a subdivision; Laws 2023, chapter 37, article 1, section 2, subdivision
20; article 2, section 9; repealing Minnesota Statutes 2024, sections 16A.287;
462A.43.

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

ARTICLE 1

HOUSING BUDGET 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 agency
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 "2026" and "2027" used in this article mean that the appropriations listed under them
are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively. "The
first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium" is
fiscal years 2026 and 2027.
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 2026 new text end		new text begin 2027 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 158,698,000 new text end

new text begin $ new text end

new text begin 83,248,000 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, the
appropriations for the programs in this section
are appropriated and made available for the
purposes of the housing development fund.
Except as otherwise indicated, the amounts
appropriated are part of the agency's
permanent budget base.
new text end

new text begin Subd. 2. new text end new text begin Challenge Program new text end

new text begin 22,925,000 new text end

new text begin 12,925,000 new text end

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

new text begin (b) Of this amount, $1,208,000 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.
new text end

new text begin (c) The base for this program in fiscal year
2028 and beyond is $12,925,000.
new text end

new text begin Subd. 3. new text end new text begin Workforce Housing Development new text end

new text begin 12,000,000 new text end

new text begin 2,000,000 new text end

new text begin (a) This appropriation is for the greater
Minnesota workforce housing development
program under Minnesota Statutes, section
462A.39. If requested by the applicant and
approved by the agency, funded properties
may include a portion of income and rent
restricted units. Funded properties may include
owner-occupied homes.
new text end

new text begin (b) The base for this program in fiscal year
2028 and beyond is $2,000,000.
new text end

new text begin Subd. 4. new text end new text begin Manufactured Home Park Infrastructure Grants new text end

new text begin 3,000,000 new text end

new text begin 1,000,000 new text end

new text begin (a) This appropriation is for manufactured
home park infrastructure grants under
Minnesota Statutes, section 462A.2035,
subdivision 1b.
new text end

new text begin (b) The base for this program in fiscal year
2028 and beyond is $1,000,000.
new text end

new text begin Subd. 5. new text end new text begin Workforce Homeownership Program new text end

new text begin 3,250,000 new text end

new text begin 250,000 new text end

new text begin (a) This appropriation is for the workforce
homeownership program under Minnesota
Statutes, section 462A.38.
new text end

new text begin (b) The base for this program in fiscal year
2028 and beyond is $250,000.
new text end

new text begin Subd. 6. new text end new text begin Rent Assistance Program new text end

new text begin 23,000,000 new text end

new text begin 23,000,000 new text end

new text begin This appropriation is for the rent assistance
program under Minnesota Statutes, section
462A.2095.
new text end

new text begin Subd. 7. new text end new text begin Housing Trust Fund new text end

new text begin 11,646,000 new text end

new text begin 11,646,000 new text end

new text begin This appropriation is for deposit in the housing
trust fund account created under Minnesota
Statutes, section 462A.201, and may be used
for the purposes provided in that section.
new text end

new text begin Subd. 8. new text end new text begin Homework Starts with Home new text end

new text begin 2,750,000 new text end

new text begin 2,750,000 new text end

new text begin This appropriation is for the homework starts
with home program under Minnesota Statutes,
sections 462A.201, subdivision 2, paragraph
(a), clause (4), and 462A.204, subdivision 8,
to provide assistance to homeless families,
those at risk of homelessness, or highly mobile
families.
new text end

new text begin Subd. 9. new text end new text begin Rental Assistance for Mentally Ill new text end

new text begin 5,338,000 new text end

new text begin 5,338,000 new text end

new text begin (a) This appropriation is for the rental housing
assistance program for persons with a mental
illness or families with an adult member with
a mental illness under Minnesota Statutes,
section 462A.2097. Among comparable
proposals, the agency shall prioritize those
proposals that target, in part, eligible persons
who desire to move to more integrated,
community-based settings.
new text end

new text begin (b) Notwithstanding any law to the contrary,
this appropriation may be used for risk
mitigation funds, landlord incentives, or other
costs necessary to decrease the risk of
homelessness, as determined by the agency.
new text end

new text begin Subd. 10. new text end new text begin Family Homeless Prevention new text end

new text begin 40,419,000 new text end

new text begin 10,719,000 new text end

new text begin (a) This appropriation is for the family
homeless prevention and assistance program
under Minnesota Statutes, section 462A.204.
new text end

new text begin (b) Notwithstanding any law to the contrary,
this appropriation may be used for program
costs necessary to decrease the risk of
homelessness and improve the effectiveness
of the program, as determined by the agency.
new text end

new text begin (c) When a new grantee works with a current
or former grantee in a given geographic area,
a new grantee may work with either an
advisory committee as required under
Minnesota Statutes, section 462A.204,
subdivision 6, or the local continuum of care
and is not required to meet the requirements
of Minnesota Statutes, section 462A.204,
subdivision 4.
new text end

new text begin (d) The base for this program in fiscal year
2028 and beyond is $10,719,000.
new text end

new text begin Subd. 11. new text end new text begin Home Ownership Assistance Fund new text end

new text begin 885,000 new text end

new text begin 885,000 new text end

new text begin This appropriation is for the home ownership
assistance program under Minnesota Statutes,
section 462A.21, subdivision 8. The agency
shall continue to strengthen its efforts to
address the disparity gap in the
homeownership rate between white
households and Indigenous American Indians
and communities of color. To better
understand and address the disparity gap, the
agency is required to collect, on a voluntary
basis, demographic information regarding
race, color, national origin, and sex of
applicants for agency programs intended to
benefit homeowners and homebuyers.
new text end

new text begin Subd. 12. new text end new text begin Affordable Rental Investment Fund new text end

new text begin 4,218,000 new text end

new text begin 4,218,000 new text end

new text begin (a) This appropriation is for the affordable
rental investment fund program under
Minnesota Statutes, section 462A.21,
subdivision 8b, to finance the acquisition,
rehabilitation, and debt restructuring of
federally assisted rental property and for
making equity take-out loans under Minnesota
Statutes, section 462A.05, subdivision 39.
new text end

new text begin (b) The owner of federally assisted rental
property must agree to participate in the
applicable federally assisted housing program
and to extend any existing low-income
affordability restrictions on the housing for
the maximum term permitted.
new text end

new text begin (c) The appropriation also may be used to
finance the acquisition, rehabilitation, and debt
restructuring of existing supportive housing
properties and naturally occurring affordable
housing as determined by the commissioner.
For purposes of this paragraph, "supportive
housing" means affordable rental housing with
links to services necessary for individuals,
youth, and families with children to maintain
housing stability.
new text end

new text begin Subd. 13. new text end new text begin Owner-Occupied Housing Rehabilitation new text end

new text begin 2,772,000 new text end

new text begin 2,772,000 new text end

new text begin (a) This appropriation is for the rehabilitation
of owner-occupied housing under Minnesota
Statutes, section 462A.05, subdivisions 14 and
14a.
new text end

new text begin (b) Notwithstanding any law to the contrary,
grants or loans under this subdivision may be
made without rent or income restrictions of
owners or tenants. To the extent practicable,
grants or loans must be made available
statewide.
new text end

new text begin Subd. 14. new text end new text begin Rental Housing Rehabilitation new text end

new text begin 3,743,000 new text end

new text begin 3,743,000 new text end

new text begin (a) This appropriation is for the rehabilitation
of eligible rental housing under Minnesota
Statutes, section 462A.05, subdivision 14. In
administering a rehabilitation program for
rental housing, the agency may apply the
processes and priorities adopted for
administration of the economic development
and housing challenge program under
Minnesota Statutes, section 462A.33, and may
provide grants or forgivable loans if approved
by the agency.
new text end

new text begin (b) Notwithstanding any law to the contrary,
grants or loans under this subdivision may be
made without rent or income restrictions of
owners or tenants. To the extent practicable,
grants or loans must be made available
statewide.
new text end

new text begin Subd. 15. new text end new text begin Homeownership Education, Counseling, and Training new text end

new text begin 857,000 new text end

new text begin 857,000 new text end

new text begin This appropriation is for the homeownership
education, counseling, and training program
under Minnesota Statutes, section 462A.209.
new text end

new text begin Subd. 16. new text end new text begin Capacity Building Grants new text end

new text begin 645,000 new text end

new text begin 645,000 new text end

new text begin This appropriation is for capacity building
grants under Minnesota Statutes, section
462A.21, subdivision 3b.
new text end

new text begin Subd. 17. new text end new text begin Build Wealth MN new text end

new text begin 500,000 new text end

new text begin 500,000 new text end

new text begin This appropriation is for a grant to Build
Wealth Minnesota to provide a family
stabilization plan program including program
outreach, financial literacy education, and
budget and debt counseling.
new text end

new text begin Subd. 18. new text end new text begin Greater Minnesota Housing Infrastructure Grants new text end

new text begin 20,000,000 new text end

new text begin -0- new text end

new text begin This appropriation is for the greater Minnesota
housing infrastructure grant program under
Minnesota Statutes, section 462A.395. This
is a onetime appropriation.
new text end

new text begin Subd. 19. new text end new text begin Statewide Tenant Education and Hotline Service new text end

new text begin 500,000 new text end

new text begin -0- new text end

new text begin This appropriation is for a statewide tenant
education and hotline service that provides
free and confidential legal advice for all
Minnesota renters. This is a onetime
appropriation.
new text end

new text begin Subd. 20. new text end new text begin Accessible Housing Task Force new text end

new text begin 150,000 new text end

new text begin -0- new text end

new text begin This appropriation is for administration of the
Accessible Housing Task Force established
in this act. This is a onetime appropriation.
new text end

new text begin Subd. 21. new text end new text begin Policies to Stabilize Affordable Housing new text end

new text begin 100,000 new text end

new text begin -0- new text end

new text begin This appropriation is for administration of
article 3, sections 1, 2, and 6. This is a onetime
appropriation.
new text end

new text begin Subd. 22. new text end new text begin Availability new text end

new text begin Money appropriated in the first year in this
article is available the second year.
new text end

Sec. 3. new text begin TRANSFER; HOUSING SUPPORT ACCOUNT.
new text end

new text begin The commissioner of management and budget must transfer any unencumbered balance
from the housing support account, under Minnesota Statutes, section 462A.43, to the general
fund by June 15, 2025.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2024, section 16A.287, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2024, section 462A.43, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective June 30, 2025.
new text end

ARTICLE 2

BONDING AUTHORITY AND DEBT SERVICE APPROPRIATIONS

Section 1.

Minnesota Statutes 2024, section 462A.37, is amended by adding a subdivision
to read:

new text begin Subd. 2k. new text end

new text begin Additional authorization. new text end

new text begin In addition to the amount authorized in subdivisions
2 to 2j and 3a, the agency may issue up to $100,000,000 in one or more series to which the
payments under this section may be pledged.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2024, 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.

(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.

(k) new text begin Each July 15, beginning in 2027 and through 2048, if any housing infrastructure
bonds issued under subdivision 2k, 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

new text begin (l) 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.

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 3

HOUSING POLICY

Section 1.

Minnesota Statutes 2024, section 462A.07, subdivision 19, is amended to read:

Subd. 19.

Report to the legislature.

(a) By February 15 each year, the commissioner
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:

(1) the total number of applications for funding;

(2) the amount of funding requested;

(3) the amounts of funding awarded; and

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

(i) newly constructed owner-occupied units;

(ii) renovated owner-occupied units;

(iii) newly constructed rental units; and

(iv) renovated rental units.

(b) This reporting requirement applies to appropriations for competitive development
programs made in Laws 2023 and in subsequent laws.

new text begin (c) By January 5 each year, the commissioner must report on the financial stability of
the affordable housing industry. The report must include:
new text end

new text begin (1) the ratio of operating expenses to revenue in affordable rental housing projects; and
new text end

new text begin (2) the percent of rents collected on time, divided into four regions of the state:
new text end

new text begin (i) the cities of St. Paul and Minneapolis;
new text end

new text begin (ii) the metropolitan counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
Washington, except for the cities of St. Paul and Minneapolis;
new text end

new text begin (iii) urban greater Minnesota, including the cities of Duluth, Mankato, Moorhead,
Rochester, and St. Cloud; and
new text end

new text begin (iv) rural greater Minnesota, which includes all of Minnesota, except for the places listed
in items (i), (ii), and (iii).
new text end

Sec. 2.

Minnesota Statutes 2024, section 462A.07, is amended by adding a subdivision to
read:

new text begin Subd. 21. new text end

new text begin Affordable housing annual meeting. new text end

new text begin At least once each year, the
commissioner must convene a meeting with the Interagency Council to End Homelessness
and the cities and counties with high levels of cost-burdened households, meaning those
where gross rent or homeownership costs are 30 percent or more of household income. The
purpose of the meeting is to discuss:
new text end

new text begin (1) resources received by cities and counties;
new text end

new text begin (2) regional needs for affordable housing; and
new text end

new text begin (3) recommendations for the collaborative use of funds to effectively address
homelessness, housing insecurity, security of affordable housing, and the lack of housing
supply.
new text end

Sec. 3.

Minnesota Statutes 2024, section 462A.07, is amended by adding a subdivision to
read:

new text begin Subd. 22. new text end

new text begin Prioritization of competitive development program awards. new text end

new text begin (a) When
assessing applications for funding from competitive development programs, the commissioner
shall prioritize applications for projects located in jurisdictions that have policies conducive
to developing residential properties. For assessing applications for funding for any
competitive development program, the commissioner shall develop a scoring system which
awards additional points to any jurisdiction that meets any of the following criteria:
new text end

new text begin (1) the jurisdiction allows for the development of multifamily housing in at least 75
percent of the area within the jurisdiction zoned as the commercial district;
new text end

new text begin (2) the jurisdiction allows for duplexes, accessory dwelling units, or townhomes within
75 percent of the area within the jurisdiction zoned for single-family and applies the same
administrative approval process to those properties that would apply to a single-family
dwelling being developed on the same lot;
new text end

new text begin (3) the jurisdiction does not have parking mandates greater than one stall per unit of
housing for single family or multifamily developments;
new text end

new text begin (4) the jurisdiction does not mandate lot sizes larger than one-eighth of an acre; and
new text end

new text begin (5) the jurisdiction does not place aesthetic mandates on new home construction in
single-family, including type of exterior finish materials, including siding; the presence of
shutters, columns, gables, decks, balconies, or porches; or minimum garage square footage,
size, width, or depth.
new text end

new text begin (b) In determining whether a jurisdiction has complied with any of the criteria in
paragraph (a), the commissioner may rely on representations on the website of a municipality
as to their compliance with any of those criteria.
new text end

Sec. 4.

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

Subd. 20. Community-Based First-Generation Homebuyers Down Payment Assistance

100,000,000

-0-

This appropriation is for a grant to Midwest
Minnesota Community Development
Corporation (MMCDC) to act as the
administrator of the community-based
first-generation homebuyers down payment
assistance program. The funds shall be
available to MMCDC for a three-year period
commencing with issuance of the funds to
MMCDC. At the expiration of that period, any
unused funds shall be remitted to the agency.
deleted text begin Any funds recaptured by MMCDC after the
expiration of that period shall be remitted to
the agency. deleted text end Funds remitted to the agency
under this paragraph are appropriated to the
agency for administration of the
first-generation homebuyers down payment
assistance fund.

Sec. 5.

Laws 2023, chapter 37, article 2, section 9, is amended to read:

Sec. 9. COMMUNITY-BASED FIRST-GENERATION HOMEBUYERS
ASSISTANCE PROGRAM.

Subdivision 1.

Establishment.

A community-based first-generation homebuyers down
payment assistance program is established as a deleted text begin pilot project deleted text end new text begin program new text end under the administration
of the Midwest Minnesota Community Development Corporation (MMCDC), a community
development financial institution (CDFI) as defined under the Riegle Community
Development and Regulatory Improvement Act of 1994, to provide targeted assistance to
eligible deleted text begin households deleted text end new text begin homebuyers new text end .

Subd. 2.

Eligible deleted text begin household deleted text end new text begin homebuyer new text end .

For purposes of this section, deleted text begin "eligible
household" deleted text end new text begin "eligible homebuyer" new text end means deleted text begin a household deleted text end new text begin an adult person new text end :

(1) whose income is at or below 100 percent of the deleted text begin area deleted text end new text begin statewide new text end median income at the
time of deleted text begin purchase deleted text end new text begin application new text end ; deleted text begin and
deleted text end

deleted text begin (2) that includes at least one adult member:
deleted text end

deleted text begin (i) deleted text end new text begin (2) new text end who is preapproved for a first mortgage loan; new text begin and
new text end

deleted text begin (ii) deleted text end new text begin (3)(i) new text end who either never owned a home or who owned a home but lost it due to
foreclosure; and

deleted text begin (iii) deleted text end new text begin (ii) new text end whose parent or prior legal guardian either never owned a home or owned a
home but lost it due to foreclosure.

deleted text begin At least one adult household member meeting the criteria under clause (2) deleted text end new text begin The eligible
homebuyer new text end must complete an approved homebuyer education course prior to signing a
purchase agreement and, following the purchase of the home, must occupy it as their primary
residence.

Subd. 3.

Use of funds.

Assistance under this section is limited to ten percent of the
purchase price of a one or two unit home, not to exceed $32,000. new text begin Beginning in fiscal year
2027, the maximum amount of assistance may be increased to up to ten percent of the
median home sales price as reported in the previous year's Minnesota Realtors Annual
Report on the Minnesota Housing Market. new text end Funds are reserved at the issuance of preapproval.
Reservation of funds is not contingent on having an executed purchase agreement. The
assistance must be provided in the form of a new text begin no-interest new text end loan that is new text begin forgiven over five years, new text end
forgivable at a rate of 20 percent per year on the day after the anniversary date of the note new text begin ,
with the final 20 percent forgiven on the down payment assistance loan maturity date. There
is no monthly pro rata or partial year credit. The loan has no monthly payment and does not
accrue interest new text end . The prorated balance due is repayable if the property converts to nonowner
occupancy, is sold, is subjected to an ineligible refinance, is subjected to an unauthorized
transfer of title, or is subjected to a completed foreclosure action within the five-year loan
term. Recapture can be waived in the event of financial or personal hardship. new text begin MMCDC may
retain recaptured funds for assisting eligible homebuyers as provided in this section. new text end Funds
may be used for closing costs, down payment, or principal reduction. The eligible household
may select any first mortgage lender or broker of their choice, provided that the funds are
used in conjunction with a conforming first mortgage loan that is fully amortizing and meets
the standards of a qualified mortgage or meets the minimum standards for exemption under
Code of Federal Regulations, title 12, section 1026.43. Funds may be used in conjunction
with other programs the eligible household may qualify for and the loan placed in any
priority position.

Subd. 4.

Administration.

The community-based first-generation homebuyers down
payment assistance program is available statewide and shall be administered by MMCDC,
the designated central CDFI. MMCDC may originate and service funds and authorize other
CDFIs, Tribal entities, and nonprofit organizations administering down payment assistance
to reserve, originate, fund, and service funds for eligible deleted text begin households deleted text end new text begin homebuyers new text end .
Administrative costs must not exceed deleted text begin $3,200 per loan deleted text end new text begin ten percent of the fiscal year
appropriation new text end .

Subd. 5.

Report to legislature.

By January 15 each year, the fund administrator,
MMCDC, must report to the chairs and ranking minority members of the legislative
committees with jurisdiction over housing finance and policy the following information:

(1) the number and amount of loans closed;

(2) the median loan amount;

(3) the number and amount of loans issued by race or ethnic categories;

(4) the median home purchase price;

(5) the interest rates and types of mortgages;

(6) the credit scores of both applicants and households served;

(7) the total amount returned to the fund; and

(8) the number and amount of loans issued by county.

Sec. 6. new text begin POLICY FRAMEWORK FOR TARGETED STABILIZATION OF
REGULATED AFFORDABLE HOUSING.
new text end

new text begin (a) The commissioner of housing finance must work with affordable housing stakeholders,
including the Interagency Stabilization Group, to develop a policy framework for targeted
stabilization of affordable rental housing. In developing this framework, the commissioner
must identify:
new text end

new text begin (1) strategies, tools, and funding mechanisms for targeted stabilization of affordable
rental housing and recapitalization of distressed properties;
new text end

new text begin (2) potential improvements for regulatory relief for affordable rental housing providers
and implement these improvements where feasible;
new text end

new text begin (3) a specific plan for relief when an operator of permanent housing cannot identify and
secure adequate service funding that matches the tenants' needs; and
new text end

new text begin (4) a strategy with the commissioner of human services to integrate the awarding of state
service dollars to permanent supportive housing so that state service dollars can accompany
capital awards in the consolidated request for proposal process.
new text end

new text begin (b) The commissioner must report quarterly to the Minnesota Housing Finance Agency
Board of Directors on the policy framework, improvements implemented, and any potential
changes to legislation that may be needed to support targeted stabilization of regulated
affordable housing and recapitalization of distressed properties.
new text end

new text begin (c) By January 5, 2026, the commissioner must report to the chairs and ranking minority
members of the legislative committees having jurisdiction over housing finance and policy
on the policy framework, improvements implemented, and any potential changes to
legislation that may be needed to support targeted stabilization of regulated affordable
housing and recapitalization of distressed properties.
new text end

Sec. 7. new text begin ACCESSIBLE HOUSING TASK FORCE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Accessible housing" means housing that is designed, constructed, or modified to
enable persons with disabilities to live independently. Accessible housing may be made
accessible through design or additional features, such as modified bathrooms, cabinetry,
appliances, furniture, space, shelves, or cupboards that improve the overall ability of persons
with disabilities to function in the housing.
new text end

new text begin (c) "Person with a disability" has the meaning given in Minnesota Statutes, section
256.481.
new text end

new text begin Subd. 2. new text end

new text begin Establishment of task force. new text end

new text begin An Accessible Housing Task Force is established
to:
new text end

new text begin (1) examine the housing experiences of persons with disabilities, including their
experiences seeking accessible housing or independent housing;
new text end

new text begin (2) examine the practices of housing providers related to accessible housing and
independent housing and the issues preventing housing providers from providing accessible
housing or independent housing units to persons with disabilities; and
new text end

new text begin (3) recommend legislation to increase the supply of safe and affordable, accessible
housing and independent housing units.
new text end

new text begin Subd. 3. new text end

new text begin Membership. new text end

new text begin (a) The task force consists of the following members appointed
by the governor:
new text end

new text begin (1) five persons with disabilities who have experienced a lack of accessible housing;
new text end

new text begin (2) two parents of adult persons who have experienced a lack of affordable housing;
new text end

new text begin (3) one representative of the Minnesota Council on Disability;
new text end

new text begin (4) one representative of Arc Minnesota;
new text end

new text begin (5) one representative of the Minnesota Consortium for Citizens with Disabilities;
new text end

new text begin (6) one representative of the Minnesota Housing Finance Agency;
new text end

new text begin (7) one representative of the Minnesota Department of Human Services;
new text end

new text begin (8) one representative of the Minnesota Department of Health;
new text end

new text begin (9) one staff person working for a housing stabilization services program;
new text end

new text begin (10) one representative of a housing contractor who has built accessible housing;
new text end

new text begin (11) one representative of a housing developer who has developed property that includes
accessible housing;
new text end

new text begin (12) one representative of an organization or a local government agency that helps find
housing for people with disabilities;
new text end

new text begin (13) one member of the Minnesota Board on Aging; and
new text end

new text begin (14) two representatives of organizations or groups who advocate for persons with
disabilities.
new text end

new text begin (b) Appointments must be made no later than July 1, 2025, and must include
representatives of both the metropolitan area and greater Minnesota.
new text end

new text begin (c) Task force members must serve without compensation, except for public members.
Members eligible for compensation must receive expenses as provided in Minnesota Statutes,
section 15.059, subdivision 6.
new text end

new text begin (d) Vacancies must be filled by the governor consistent with the qualifications of the
vacating member required by this subdivision.
new text end

new text begin Subd. 4. new text end

new text begin Meetings; officers. new text end

new text begin (a) The Minnesota Housing Finance Agency shall convene
the first meeting of the task force no later than August 15, 2025, and shall provide accessible
physical or virtual meeting space as necessary for the task force to conduct its work.
new text end

new text begin (b) At its first meeting, the task force shall elect a chair and vice-chair from among the
task force members and may elect other officers as necessary.
new text end

new text begin (c) The task force shall meet according to a schedule determined by the members or
upon the call of the task force's chair. The task force must meet as often as necessary to
accomplish the duties under subdivision 5.
new text end

new text begin (d) Meetings of the task force are subject to Minnesota Statutes, chapter 13D.
new text end

new text begin Subd. 5. new text end

new text begin Duties. new text end

new text begin (a) The task force must seek input from:
new text end

new text begin (1) individuals who are experiencing or who have experienced the lack of affordable,
accessible housing;
new text end

new text begin (2) providers of accessible housing; and
new text end

new text begin (3) any other persons or organizations with experience or expertise in affordable,
accessible housing.
new text end

new text begin (b) The task force must:
new text end

new text begin (1) research and analyze how other states, cities, and counties address a lack of affordable,
accessible housing; and
new text end

new text begin (2) develop recommendations to establish statewide education on affordable, accessible
housing to ensure that local units of government include affordable, accessible housing and
affordable housing policies in local planning.
new text end

new text begin Subd. 6. new text end

new text begin Report. new text end

new text begin (a) No later than February 1, 2026, the task force shall submit an initial
report to the chairs and ranking minority members of the legislative committees and divisions
with jurisdiction over housing on the findings and recommendations of the task force for
improving the supply, quality, and affordability of accessible housing statewide.
new text end

new text begin (b) No later than August 31, 2026, the task force shall submit a final report to the chairs
and ranking minority members of the legislative committees and divisions with jurisdiction
over housing on the findings and recommendations in paragraph (a).
new text end

new text begin Subd. 7. new text end

new text begin Expiration. new text end

new text begin The task force expires the day following submission of the final
report under subdivision 6.
new text end

new text begin EFFECTIVE DATE. new text end

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

APPENDIX

Repealed Minnesota Statutes: H2445-1

16A.287 TRANSFER; HOUSING SUPPORT.

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

462A.43 HOUSING SUPPORT ACCOUNT.

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