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Capital IconMinnesota Legislature

HF 2335

Conference Committee Report - 93rd Legislature (2023 - 2024) Posted on 05/07/2023 10:15pm

KEY: stricken = removed, old language.
underscored = added, new language.
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63.32 63.33 63.34 63.35 64.1 64.2 64.3
64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11
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67.26 67.27 67.28 67.29 67.30 67.31 68.1 68.2 68.3 68.4 68.5 68.6 68.7 68.8 68.9 68.10 68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13
69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 69.32 69.33 69.34 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11

CONFERENCE COMMITTEE REPORT ON H. F. No. 2335

A bill for an act
relating to housing; establishing budget for Minnesota Housing Finance Agency;
modifying various housing policy and finance provisions; expanding and
establishing certain homeownership, manufactured home, and rent assistance
programs; expanding requirements, uses, and amount of housing infrastructure
bonds; establishing metropolitan region sales tax; establishing local affordable
housing aid; establishing requirements for nonprofit grantees; requiring reports;
appropriating money; amending Minnesota Statutes 2022, sections 82.75,
subdivision 8; 297A.99, subdivision 1; 327C.095, subdivisions 12, 13, 16; 462.357,
subdivision 1; 462A.05, subdivision 14, by adding subdivisions; 462A.201,
subdivision 2; 462A.2035, subdivision 1b; 462A.204, subdivisions 3, 8; 462A.21,
subdivision 3b; 462A.22, subdivision 1; 462A.33, subdivision 2, by adding a
subdivision; 462A.36, subdivision 4, by adding a subdivision; 462A.37,
subdivisions 1, 2, 4, 5, by adding subdivisions; 462A.38, subdivision 1; 462A.39,
subdivisions 2, 5; 469.002, subdivision 12, by adding a subdivision; 473.145;
500.20, subdivision 2a; Laws 2021, First Special Session chapter 8, article 1,
section 3, subdivision 11; Laws 2023, chapter 20, section 1; proposing coding for
new law in Minnesota Statutes, chapters 297A; 462A; 477A.

May 7, 2023
The Honorable Melissa Hortman
Speaker of the House of Representatives

The Honorable Bobby Joe Champion
President of the Senate

We, the undersigned conferees for H. F. No. 2335 report that we have agreed upon the
items in dispute and recommend as follows:

That the Senate recede from its amendments and that H. F. No. 2335 be further amended
as follows:

Delete everything after the enacting clause and insert:

"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 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 "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 792,098,000
new text end
new text begin $
new text end
new text begin 273,298,000
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. Except as otherwise indicated,
this transfer is 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 60,425,000
new text end
new text begin 60,425,000
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, $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.
new text end

new text begin (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, and construction of homes to
be sold to households with incomes of 50 to
60 percent of the area median income. This is
a onetime appropriation, and is available until
June 30, 2027. By December 15 each year
until 2027, 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.
new text end

new text begin (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.
new text end

new text begin (e) The base for this program in fiscal year
2026 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 19,500,000
new text end
new text begin 19,500,000
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
2026 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 and Loans
new text end

new text begin 16,000,000
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 and loans
under Minnesota Statutes, section 462A.2035,
subdivision 1b.
new text end

new text begin (b) The base for this program in fiscal year
2026 and beyond is $1,000,000.
new text end

new text begin (c) By January 15 each year, the commissioner
must submit a report on the use of funds in
this subdivision to the chairs and ranking
minority members of the legislative
committees having jurisdiction over housing
finance and policy. The report must include
the following information:
new text end

new text begin (1) grants and loans requested and funded
during the prior fiscal year, organized by
ownership type of the manufactured home
park, such as private, cooperative, and
municipal ownership, and by county;
new text end

new text begin (2) the average amount of grants and loans
awarded;
new text end

new text begin (3) loans requested and loans funded during
the prior fiscal year, organized by ownership
type of the manufactured home park, such as
private, cooperative, and municipal ownership,
and by county;
new text end

new text begin (4) the average amount of loans issued;
new text end

new text begin (5) information regarding the terms of the
loans; and
new text end

new text begin (6) information about how repaid loan funds
were used.
new text end

new text begin Subd. 5.new text end

new text begin Workforce Homeownership Program
new text end

new text begin 20,250,000
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
2026 and beyond is $250,000.
new text end

new text begin Subd. 6.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. 7.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. 8.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 (c) The base for this program in fiscal year
2026 and beyond is $5,338,000.
new text end

new text begin Subd. 9.new text end

new text begin Family Homeless Prevention
new text end

new text begin 55,269,000
new text end
new text begin 10,269,000
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) Up to $1,000,000 in fiscal year 2024 is for
grants to eligible applicants to create or expand
risk mitigation programs to reduce landlord
financial risks for renting to persons eligible
under Minnesota Statutes, section 462A.204.
Eligible programs may use funds for
administrative costs, outreach and coordination
staff, and to reimburse landlords for costs
including but not limited to nonpayment of
rent, or damage costs above those costs
covered by security deposits. This
appropriation may be used for staffing costs
necessary to implement the program. The
agency may give priority to applicants that
demonstrate a matching amount of money by
a local unit of government, business, or
nonprofit organization. Grantees must
establish a procedure to review and validate
claims and reimbursements under this
program. This is a onetime appropriation.
new text end

new text begin (c) For fiscal year 2024 and fiscal year 2025,
qualified families may receive more than 24
months of rental assistance.
new text end

new text begin (d) If the agency determines that the
metropolitan area needs additional support to
serve homeless households or those at risk of
homelessness, the agency is authorized to
grant funds to entities other than counties in
the metropolitan area, including but not limited
to nonprofit organizations.
new text end

new text begin (e) 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 (f) Notwithstanding Minnesota Statutes,
section 16C.06, $10,000,000 of this
appropriation is allocated to federally
recognized American Indian Tribes located in
Minnesota.
new text end

new text begin (g) $2,400,000 in fiscal year 2024 is for a
grant to Neighborhood House, a Ramsey
County-based nonprofit organization, to
provide administrative costs for families facing
eviction, rental assistance, delinquent utility
fees, mortgage assistance, and damage deposit
assistance. This is a onetime appropriation.
new text end

new text begin (h) The base for this program in fiscal year
2026 and beyond is $10,269,000.
new text end

new text begin Subd. 10.new text end

new text begin Home Ownership Assistance Fund
new text end

new text begin 50,885,000
new text end
new text begin 885,000
new text end

new text begin (a) 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 (b) The base for this program in fiscal year
2026 and beyond is $885,000.
new text end

new text begin Subd. 11.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. 12.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. 13.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. 14.new text end

new text begin Homeownership Education,
Counseling, and Training
new text end

new text begin 1,857,000
new text end
new text begin 1,857,000
new text end

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

new text begin (b) The base for this program in fiscal year
2026 and beyond is $857,000.
new text end

new text begin Subd. 15.new text end

new text begin Capacity-Building Grants
new text end

new text begin 3,145,000
new text end
new text begin 3,145,000
new text end

new text begin (a) This appropriation is for capacity-building
grants under Minnesota Statutes, section
462A.21, subdivision 3b. Of this amount, up
to $170,000 in fiscal year 2024 is for Open
Access Connections. The appropriation for
Open Access Connections is onetime.
new text end

new text begin (b) $445,000 in fiscal year 2024 is for a grant
to the Community Stabilization Project to: (1)
deliver services and curriculum to renters and
property owners in order to preserve deeply
affordable rental units in underrepresented
communities; (2) help create entry-level
employment opportunities for renters; and (3)
construct a secure space for documents and
identification for those experiencing
homelessness. This is a onetime appropriation.
new text end

new text begin (c) The base for this program in fiscal year
2026 and beyond is $645,000.
new text end

new text begin Subd. 16.new text end

new text begin Build Wealth Minnesota
new text end

new text begin 5,500,000
new text end
new text begin 500,000
new text end

new text begin (a) $500,000 each year is for a grant to Build
Wealth Minnesota to provide a family
stabilization plan program.
new text end

new text begin (b) $5,000,000 the first year is for a grant to
Build Wealth Minnesota for the 9,000 Equities
Fund, a targeted loan pool, to provide
affordable first mortgages or equivalent
financing opportunities to households
struggling to access mortgages in underserved
communities of color. Of this amount, up to
$1,000,000 may be used for a grant to
Stairstep Foundation to support completion of
the Family Stabilization Plan program
developed by Build Wealth Minnesota. This
is a onetime appropriation.
new text end

new text begin Subd. 17.new text end

new text begin Housing Infrastructure
new text end

new text begin 100,000,000
new text end
new text begin 100,000,000
new text end

new text begin 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.
new text end

new text begin Subd. 18.new text end

new text begin Supportive Housing
new text end

new text begin 25,000,000
new text end
new text begin -0-
new text end

new text begin This appropriation is for the supportive
housing program under Minnesota Statutes,
section 462A.42. This is a onetime
appropriation.
new text end

new text begin Subd. 19.new text end

new text begin First-Generation Homebuyers Down
Payment Assistance
new text end

new text begin 50,000,000
new text end
new text begin -0-
new text end

new text begin This appropriation is for the first-generation
homebuyers down payment assistance fund
under Minnesota Statutes, section 462A.41.
This is a onetime appropriation.
new text end

new text begin Subd. 20.new text end

new text begin Community-Based First-Generation
Homebuyers Down Payment Assistance
new text end

new text begin 100,000,000
new text end
new text begin -0-
new text end

new text begin 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.
Any funds recaptured by MMCDC after the
expiration of that period shall be remitted to
the agency. Funds remitted to the agency
under this paragraph are appropriated to the
agency for administration of the
first-generation homebuyers down payment
assistance fund.
new text end

new text begin Subd. 21.new text end

new text begin Local Housing Trust Fund Grants
new text end

new text begin 4,800,000
new text end
new text begin -0-
new text end

new text begin (a) This appropriation is for deposit in the
housing development fund for grants to local
housing trust funds established under
Minnesota Statutes, section 462C.16, to
incentivize local funding. This is a onetime
appropriation.
new text end

new text begin (b) A grantee is eligible to receive a grant
amount equal to 100 percent of the public
revenue committed to the local housing trust
fund from any source other than the state or
federal government, up to $150,000, and in
addition, an amount equal to 50 percent of the
public revenue committed to the local housing
trust fund from any source other than the state
or federal government that is more than
$150,000 but not more than $300,000.
new text end

new text begin (c) A grantee must use grant funds within eight
years of receipt for purposes (1) authorized
under Minnesota Statutes, section 462C.16,
subdivision 3, and (2) benefiting households
with incomes at or below 115 percent of the
state median income. A grantee must return
any grant funds not used for these purposes
within eight years of receipt to the
commissioner of the Minnesota Housing
Finance Agency for deposit into the housing
development fund.
new text end

new text begin Subd. 22.new text end

new text begin Greater Minnesota Housing
Infrastructure Grant Program
new text end

new text begin 5,000,000
new text end
new text begin -0-
new text end

new text begin This appropriation is for the greater Minnesota
housing infrastructure grant program. This is
a onetime appropriation.
new text end

new text begin Subd. 23.new text end

new text begin Stable Rental Housing Mediation
new text end

new text begin 3,000,000
new text end
new text begin -0-
new text end

new text begin (a) This appropriation is for a grant to
Community Mediation Minnesota to
administer a statewide housing mediation
program to provide support to renters and
residential rental property owners. This is a
onetime appropriation.
new text end

new text begin (b) The grant money must be used to: (1)
provide housing dispute resolution services;
(2) increase awareness of and access to
housing dispute resolution services statewide;
(3) provide alternative dispute resolution
services, including but not limited to eviction
prevention, mediation, and navigation
services; (4) partner with culturally specific
dispute resolution programs to provide training
and assistance with virtual and in-person
mediation services; (5) increase mediation
services for seniors and renters with
disabilities and illnesses that face housing
instability; (6) increase the diversity and
cultural competency of the housing mediator
roster; (7) integrate housing mediation services
with navigation and resource connection
services, legal assistance, and court services
programs; (8) develop and administer
evaluation tools to design, modify, and
replicate effective program outcomes; and (9)
provide for necessary administrative expenses.
new text end

new text begin Subd. 24.new text end

new text begin Manufactured Home Park Cooperative
Purchase
new text end

new text begin 10,000,000
new text end
new text begin -0-
new text end

new text begin (a) This appropriation is for a grant to
Northcountry Cooperative Foundation and its
wholly controlled affiliated entities to make
loans as specified under this section. This is
a onetime appropriation.
new text end

new text begin (b) The funds may be used for a revolving
fund under Minnesota Statutes, section
462A.05, subdivision 35, for the purposes of
conversion of manufactured home parks to
cooperative ownership.
new text end

new text begin (c) Funds must be used for the creation and
preservation of housing that is affordable to
households with incomes at or below 80
percent of the greater of state or area median
income.
new text end

new text begin (d) A deed purchased with a loan under this
section must contain a covenant running with
the land requiring that the land be used as a
manufactured home park for 30 years from
the date of purchase.
new text end

new text begin (e) The commissioner is encouraged to
establish a mortgage program, with terms and
conditions determined by the agency, to help
facilitate the distribution of this appropriation.
new text end

new text begin (f) For the purposes of this subdivision, the
term "manufactured home" has the meaning
given in Minnesota Statutes, section 327B.01,
subdivision 13, and the term "manufactured
home park" has the meaning given in
Minnesota Statutes, section 327.14,
subdivision 3.
new text end

new text begin Subd. 25.new text end

new text begin Manufactured Home Lending Grants
new text end

new text begin 10,000,000
new text end
new text begin -0-
new text end

new text begin This appropriation is for the manufactured
home lending grant program. This is a onetime
appropriation.
new text end

new text begin Subd. 26.new text end

new text begin Lead Safe Homes Grant Program
new text end

new text begin 4,000,000
new text end
new text begin -0-
new text end

new text begin This appropriation is for the lead safe homes
grant program. This is a onetime
appropriation.
new text end

new text begin Subd. 27.new text end

new text begin High-Rise Sprinkler System Grant
Program
new text end

new text begin 10,000,000
new text end
new text begin -0-
new text end

new text begin This appropriation is for the high-rise sprinkler
system grant program. Of this amount, up to
$4,000,000 must be for a grant to
CommonBond Communities for installation
of sprinkler systems at two buildings known
as Seward Tower West located at 2515 South
9th Street in Minneapolis and Seward Tower
East located at 2910 East Franklin Avenue in
Minneapolis. This is a onetime appropriation.
new text end

new text begin Subd. 28.new text end

new text begin First-Time Homebuyer, Fee-Based
Home Purchase Financing
new text end

new text begin 10,000,000
new text end
new text begin -0-
new text end

new text begin This appropriation is for the first-time
homebuyer, fee-based home purchase
financing program. This appropriation is
onetime. Services rendered under grant
contracts with the grantee may occur any time
up until June 30, 2026.
new text end

new text begin Subd. 29.new text end

new text begin Community Stabilization
new text end

new text begin 45,000,000
new text end
new text begin 45,000,000
new text end

new text begin 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.
new text end

new text begin Subd. 30.new text end

new text begin Rent Assistance Program
new text end

new text begin 46,000,000
new text end
new text begin -0-
new text end

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

new text begin (b) The base for this program in fiscal year
2026 and beyond is $23,000,000.
new text end

new text begin Subd. 31.new text end

new text begin Homeownership Investment Grants
Program
new text end

new text begin 40,000,000
new text end
new text begin -0-
new text end

new text begin This appropriation is for the homeownership
investment grants program. This is a onetime
appropriation.
new text end

new text begin Subd. 32.new text end

new text begin Northland Foundation
new text end

new text begin 1,000,000
new text end
new text begin -0-
new text end

new text begin This appropriation is for a grant to Northland
Foundation for use on expenditures authorized
under Minnesota Statutes, section 462C.16,
subdivision 3 and on 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.
new text end

new text begin Subd. 33.new text end

new text begin Stable Housing Organization Relief
new text end

new text begin 50,000,000
new text end
new text begin -0-
new text end

new text begin This appropriation is for the stable housing
organization relief program. This appropriation
is onetime.
new text end

new text begin Subd. 34.new text end

new text begin Public Housing Rehabilitation
new text end

new text begin 15,000,000
new text end
new text begin -0-
new text end

new text begin (a) $10,000,000 is to finance the costs of
rehabilitation to preserve public housing under
Minnesota Statutes, section 462A.202,
subdivision 3a. For purposes of this section,
"public housing" means housing for
low-income persons and households that is
financed by the federal government and
publicly owned or housing that has been
repositioned under the federal Rental
Assistance Demonstration or similar program.
The agency may give priority to proposals that
maximize nonstate resources to finance the
capital costs; requests that prioritize long-term
affordability; and requests that prioritize
health, safety, and energy improvements. The
priority in Minnesota Statutes, section
462A.202, subdivision 3a, for projects to
increase the supply of affordable housing and
the restrictions of Minnesota Statutes, section
462A.202, subdivision 7, do not apply to this
appropriation. This is a onetime appropriation.
new text end

new text begin (b) $5,000,000 is for a grant to the
Minneapolis Public Housing Authority for the
city of Minneapolis and its affiliated entities,
including but not limited to its wholly
controlled nonprofit corporation, Community
Housing Resources, to rehabilitate, preserve,
equip, and repair its deeply affordable family
housing units. This a onetime appropriation.
new text end

new text begin Subd. 35.new text end

new text begin Availability and Transfer of Funds
new text end

new text begin Money appropriated in the first year in this
article is available the second year. The
commissioner may shift or transfer money in
the second year in subdivisions 2, 3, 4, 5, 11,
12, and 13 to address high-priority housing
needs. The commissioner may also shift
money between subdivisions 10 and 19 after
fiscal year 2024.
new text end

Sec. 3. new text begin MANAGEMENT AND BUDGET
new text end

new text begin $
new text end
new text begin 200,000
new text end
new text begin $
new text end
new text begin -0-
new text end

new text begin $200,000 in fiscal year 2024 is to the
commissioner of management and budget to
fund a study by Management Analysis and
Development on expediting rental assistance
payments. This is a onetime appropriation.
new text end

ARTICLE 2

HOUSING GRANT PROGRAMS

Section 1.

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


new text begin Subd. 42.new text end

new text begin Rent assistance program.new text end

new text begin The agency may administer the rent assistance
program established in section 462A.2095.
new text end

Sec. 2.

new text begin [462A.2095] RENT ASSISTANCE PROGRAM.
new text end

new text begin Subdivision 1.new text end

new text begin Program established.new text end

new text begin (a) The state rent assistance account is established
as a separate account in the housing development fund. Money in the account is appropriated
to the agency for grants to program administrators for the purposes specified in this section.
new text end

new text begin (b) Money deposited in the account under section 297A.9925 is for grants to program
administrators in the metropolitan counties as defined in section 473.121, subdivision 4.
new text end

new text begin Subd. 2.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) "Eligible household" means a household with an annual income of up to 50 percent
of the area median income as determined by the United States Department of Housing and
Urban Development, adjusted for family size, that is paying more than 30 percent of the
household's annual income on rent. Eligibility is determined at the time a household first
receives rent assistance under this section. Eligibility shall be recertified every year thereafter.
Eligible household does not include a household receiving federal tenant-based or
project-based assistance under Section 8 of the United States Housing Act of 1937, as
amended.
new text end

new text begin (c) "Program administrator" means:
new text end

new text begin (1) a housing and redevelopment authority or other local government agency or authority
that administers federal tenant-based or project-based assistance under Section 8 of the
United States Housing Act of 1937, as amended;
new text end

new text begin (2) a Tribal government or Tribally designated housing entity; or
new text end

new text begin (3) if there is no entity under clause (1) or (2) with the capacity to administer the program,
a nongovernmental organization determined by the agency to have the capacity to administer
the program.
new text end

new text begin Subd. 3.new text end

new text begin Grants to program administrators.new text end

new text begin (a) The agency may make grants to
program administrators to provide rental assistance for eligible households. For both
tenant-based and project-based assistance, program administrators shall pay assistance
directly to housing providers. Rental assistance may be provided in the form of tenant-based
assistance or project-based assistance. Notwithstanding the amounts awarded under
subdivision 1, paragraph (b), and to the extent practicable, the agency must make grants
statewide in proportion to the number of households eligible for assistance in each county
according to the most recent American Community Survey of the United States Census
Bureau.
new text end

new text begin (b) The program administrator may use its existing procedures to administer the rent
assistance program or may develop alternative procedures with the goals of reaching
households most in need and incentivizing landlord participation. The agency must approve
a program administrator's alternative procedures. Priority for rental assistance shall be given
to households with children 18 years of age and under, and annual incomes of up to 30
percent of the area median income. Program administrators may establish additional priority
populations based on local need.
new text end

new text begin Subd. 4.new text end

new text begin Amount of rent assistance.new text end

new text begin A program administrator may provide tenant-based
or project-based vouchers in amounts equal to the difference between 30 percent of household
income and the rent charged, plus an allowance for utilities if not included in rent. A program
administrator may not provide assistance that is more than the difference between 30 percent
of the tenant's gross income and 120 percent of the payment standard, plus utilities, as
established by the local public housing authority, unless otherwise authorized by the agency.
new text end

new text begin Subd. 5.new text end

new text begin Administrative fees.new text end

new text begin The agency shall consult with public housing authorities
to determine the amount of administrative fees, including start-up costs, to pay to program
administrators.
new text end

new text begin Subd. 6.new text end

new text begin Rent assistance not income.new text end

new text begin (a) Notwithstanding any law to the contrary,
payments under this section must not be considered income, assets, or personal property
for purposes of determining eligibility or recertifying eligibility for state public assistance,
including but not limited to:
new text end

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

new text begin (2) general assistance, Minnesota supplemental aid, and 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

new text begin (b) The commissioner of human services must not consider rent assistance grant money
under this section as income or assets under section 256B.056, subdivision 1a, paragraph
(a); subdivision 3; or subdivision 3c, or for persons with eligibility determined under section
256B.057, subdivision 3, 3a, or 3b.
new text end

new text begin Subd. 7.new text end

new text begin Oversight.new text end

new text begin The agency may direct program administrators to comply with
applicable sections of Code of Federal Regulations, title 24, parts 982 and 983.
new text end

Sec. 3.

new text begin [462A.41] FIRST-GENERATION HOMEBUYERS DOWN PAYMENT
ASSISTANCE FUND.
new text end

new text begin Subdivision 1.new text end

new text begin Establishment.new text end

new text begin A first-generation homebuyers down payment assistance
fund is established for the agency to provide targeted assistance to eligible first-generation
homebuyer households throughout the state. The agency may partner with community
organizations, including community development financial institutions, credit unions, other
financial institutions, nonprofits, government entities, or federally recognized American
Indian Tribes or their Tribally Designated Housing Entities, to deliver the assistance.
new text end

new text begin Subd. 2.new text end

new text begin Eligible homebuyer.new text end

new text begin (a) For purposes of this section, "eligible first-generation
homebuyer" means an individual:
new text end

new text begin (1) whose household income is at or below 115 percent of the statewide or area median
income, whichever is greater, at the time of purchase;
new text end

new text begin (2) who is a first-time homebuyer as defined by the agency;
new text end

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

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

new text begin (ii) has a parent or prior legal guardian who does not currently own a home and had
never previously owned a home or had previously owned a home but lost it due to
foreclosure;
new text end

new text begin (4) who completes an approved homebuyer education course; and
new text end

new text begin (5) who plans on occupying the home as a primary residence.
new text end

new text begin (b) An eligible homebuyer must purchase the home within the maximum loan amount
established by the Federal Housing Administration for the county in which the home is
located and must contribute a minimum of $1,000 toward down payment or closing costs.
new text end

new text begin Subd. 3.new text end

new text begin Use of funds.new text end

new text begin Assistance under this section may be provided as a forgivable
loan, a deferred loan, or a combination of both. Homebuyers may use the funds to purchase
a one- to four-unit home, including manufactured homes. The assistance is limited to the
greater of ten percent of the purchase price of a home or $35,000 per eligible first-generation
homebuyer household. The amount of assistance shall be adjusted for market conditions
over time at the discretion of the agency. The funds may be used for one or more of the
following: closing costs, down payment, mortgage insurance, interest rate buy-down, and
principal reduction. The funds can be combined with other homebuyer assistance and must
be used in conjunction with a conforming first mortgage loan that is fully amortizing, with
or without interest, and meets the standard of a qualified mortgage or as otherwise determined
by the agency.
new text end

new text begin Subd. 4.new text end

new text begin Repayment.new text end

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

new text begin Subd. 5.new text end

new text begin Administration.new text end

new text begin The first-generation homebuyers down payment assistance
fund is available statewide and shall be administered by the agency. If the agency works
with a lending partner, that partner may use a percentage of the funds received for
administrative fees as determined by the agency.
new text end

Sec. 4.

new text begin [462A.42] SUPPORTIVE HOUSING PROGRAM.
new text end

new text begin Subdivision 1.new text end

new text begin Establishment.new text end

new text begin The agency shall establish a supportive housing program
to provide funding to increase alignment with housing development financing and strengthen
supportive housing for individuals and families who have experienced homelessness.
new text end

new text begin Subd. 2.new text end

new text begin Definition.new text end

new text begin For the purposes of this section, "supportive housing" means housing
that is not time-limited and provides or coordinates with services necessary for residents to
maintain housing stability and maximize opportunities for education and employment.
new text end

new text begin Subd. 3.new text end

new text begin Eligible recipients.new text end

new text begin Funding may be made to a local unit of government, a
federally recognized American Indian Tribe or its Tribally Designated Housing Entity
located in Minnesota, a private developer, or a nonprofit organization.
new text end

new text begin Subd. 4.new text end

new text begin Eligible uses.new text end

new text begin (a) Funds shall be used to cover costs needed for supportive
housing to operate effectively. Costs may include but are not limited to building operating
expenses such as front desk, tenant service coordination, revenue shortfall, and security
costs. These funds may be capitalized as part of development costs. Funds may be provided
to support existing permanent supportive housing units or to cover costs associated with
new permanent supportive housing units.
new text end

new text begin (b) Funds may be used to create partnerships with the health care sector and other sectors
to demonstrate sustainable ways to provide services for supportive housing residents, improve
access to health care, and reduce the use of expensive emergency and institutional care.
This may be done in partnership with other state agencies, including the Department of
Health and the Department of Human Services.
new text end

new text begin Subd. 5.new text end

new text begin Application.new text end

new text begin The commissioner shall develop forms and procedures for soliciting
and reviewing applications for funding under this section. The commissioner shall consult
with interested stakeholders when developing the guidelines and procedures for the program.
new text end

Sec. 5. new text begin LEAD SAFE HOMES GRANT PROGRAM.
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 making homes safer
through lead testing and hazard reduction.
new text end

new text begin Subd. 2.new text end

new text begin Eligible projects.new text end

new text begin (a) The commissioner may award a grant under this section
for any project that will:
new text end

new text begin (1) provide lead risk assessments completed by a lead inspector or a lead risk assessor
licensed by the commissioner of health pursuant to section 144.9505 for properties built
before 1978 to determine the presence of lead hazards;
new text end

new text begin (2) remediate lead health hazards; and
new text end

new text begin (3) serve low-income residents. For multifamily rental properties, at least 50 percent of
the tenants must have an income at or below 60 percent of the area median income.
new text end

new text begin (b) The commissioner must give priority to funding projects that serve areas where there
are high concentrations of lead poisoning in children based on information provided by the
commissioner of health.
new text end

new text begin (c) The commissioner must balance grant awards so that projects occur within and outside
metropolitan counties as defined in section 473.121, subdivision 4.
new text end

new text begin (d) Up to ten percent of a grant award may be used to administer the grant and provide
education and outreach about lead health hazards.
new text end

new text begin Subd. 3.new text end

new text begin Grant eligibility.new text end

new text begin A nonprofit organization or local unit of government may
apply for a grant under this section.
new text end

new text begin Subd. 4.new text end

new text begin Short title. new text end

new text begin This section shall be known as the "Dustin Luke Shields Act."
new text end

Sec. 6. new text begin COMMUNITY STABILIZATION PROGRAM.
new text end

new text begin Subdivision 1.new text end

new text begin Establishment.new text end

new text begin The Minnesota Housing Finance Agency shall establish
a community stabilization program to provide grants or loans to preserve naturally occurring
affordable housing through acquisition or rehabilitation.
new text end

new text begin Subd. 2.new text end

new text begin Definitions.new text end

new text begin For the purposes of this section, "naturally occurring affordable
housing" means:
new text end

new text begin (1) multiunit rental housing that:
new text end

new text begin (i) is at least 20 years old;
new text end

new text begin (ii) has rents in a majority of units that are affordable to households at or below 60
percent of the greater of state or area median income as determined by the United States
Department of Housing and Urban Development; and
new text end

new text begin (iii) does not currently have federal or state financing or tax credits that require income
or rent restrictions, except for public housing, as defined in Section 9 of the Housing Act
of 1937, that is part of a mixed-finance community; or
new text end

new text begin (2) owner-occupied housing located in communities where market pressures or significant
deferred rehabilitation needs, as defined by the agency, create opportunities for displacement
or the loss of owner-occupied housing affordable to households at or below 115 percent of
the greater of state or area median income as determined by the United States Department
of Housing and Urban Development.
new text end

new text begin Subd. 3.new text end

new text begin Eligible recipients.new text end

new text begin (a) Grants or loans may be made to:
new text end

new text begin (1) a local unit of government;
new text end

new text begin (2) a federally recognized American Indian Tribe located in Minnesota or its Tribally
Designated Housing Entity;
new text end

new text begin (3) a private developer;
new text end

new text begin (4) a limited equity cooperative;
new text end

new text begin (5) a cooperative created under chapter 308A or 308B;
new text end

new text begin (6) a community land trust created for the purposes outlined in section 462A.31,
subdivision 1; or
new text end

new text begin (7) a nonprofit organization.
new text end

new text begin (b) The agency may make a grant to a statewide intermediary to facilitate the acquisition
and associated rehabilitation of existing multiunit rental housing and may use an intermediary
or intermediaries for the acquisition and associated rehabilitation of owner-occupied housing.
new text end

new text begin Subd. 4.new text end

new text begin Eligible uses.new text end

new text begin The program shall provide grants or loans for the purpose of
acquisition, rehabilitation, interest rate reduction, or gap financing of housing to support
the preservation of naturally occurring affordable housing. Priority in funding shall be given
to proposals that serve lower-income households and maintain longer periods of affordability.
new text end

new text begin Subd. 5.new text end

new text begin Owner-occupied housing income limits.new text end

new text begin Households served through grants
or loans related to owner-occupied housing must have, at initial occupancy, income that is
at or below 115 percent of the greater of state or area median income as determined by the
United States Department of Housing and Urban Development.
new text end

new text begin Subd. 6.new text end

new text begin Multifamily housing rent limits.new text end

new text begin Multifamily housing financed through grants
or loans under this section must remain affordable to low-income or moderate-income
households as defined by the agency.
new text end

new text begin Subd. 7.new text end

new text begin Application.new text end

new text begin (a) The agency shall develop forms and procedures for soliciting
and reviewing applications for loans or grants under this section. The agency shall consult
with interested stakeholders when developing the guidelines and procedures for the program.
new text end

new text begin (b) Notwithstanding any other applicable law, the agency may accept applications on a
noncompetitive, rolling basis in order to provide funds for eligible properties as they become
available.
new text end

new text begin Subd. 8.new text end

new text begin Voucher requirement for rental properties.new text end

new text begin Rental properties that receive
funds must accept rental subsidies, including but not limited to vouchers under Section 8
of the United States Housing Act of 1937, as amended.
new text end

Sec. 7. new text begin GREATER MINNESOTA HOUSING INFRASTRUCTURE GRANT
PROGRAM.
new text end

new text begin Subdivision 1.new text end

new text begin Grant program established.new text end

new text begin The commissioner of the Minnesota Housing
Finance Agency may make grants to 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.
new text end

new text begin Subd. 2.new text end

new text begin Definitions.new text end

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

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

new text begin (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.
new text end

new text begin Subd. 3.new text end

new text begin Eligible projects.new text end

new text begin 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 end

new text begin Subd. 4.new text end

new text begin Application.new text end

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

new text begin (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
new text end

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

new text begin (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.
new text end

new text begin Subd. 5.new text end

new text begin Maximum grant amount.new text end

new text begin A city may receive no more than $30,000 per lot
for single-family, duplex, triplex, or fourplex housing developed and no more than $180,000
per lot for multifamily housing with more than four units per building. A city may receive
no more than $500,000 in two years for one or more housing developments.
new text end

Sec. 8. new text begin STABLE HOUSING ORGANIZATION RELIEF PROGRAM.
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 in accordance with this section to
support nonprofits that are experiencing significant detrimental financial impacts due to
recent economic and social conditions.
new text end

new text begin Subd. 2.new text end

new text begin Eligible organizations.new text end

new text begin To be eligible for a grant under this section an
organization must:
new text end

new text begin (1) be a nonprofit organization that is tax exempt under section 501(c)(3) of the Internal
Revenue Code that has been doing business in the state for at least ten years as demonstrated
by registration or filing of organizational documents with the secretary of state;
new text end

new text begin (2) have its primary operations located in the state;
new text end

new text begin (3) be experiencing significant detrimental financial impact due to recent economic and
social conditions, including but not limited to decreased operating revenue due to loss of
rental income or increased operating expenses due to inflation in utility expenses, insurance,
or other expenses;
new text end

new text begin (4) have supportive services options available for the individuals and families residing
in the rental housing it provides to low-income populations; and
new text end

new text begin (5) provide, as of December 31, 2022, housing units in the state that it owns or controls
consisting of any of the following:
new text end

new text begin (i) at least 1,000 units of naturally occurring affordable housing. For purposes of this
item, "naturally occurring affordable housing" means multiunit rental housing developments
that have not received financing from the federal low-income housing tax credit program
for which the majority of the units have agreements in place to be affordable to individuals
or families with incomes at or below 60 percent of the area median income as determined
by the United States Department of Housing and Urban Development, adjusted for family
size, and that do not receive project- or other place-based rental subsidies from the federal
government;
new text end

new text begin (ii) rental housing units, not including naturally occurring affordable housing, of which
50 percent of the total number of units are rented to individuals or families whose annual
incomes, according to the most recent income certification as of December 31, 2022, are
at or below 30 percent of the area median income as determined by the United States
Department of Housing and Urban Development, adjusted for family size; or
new text end

new text begin (iii) at least 250 units of permanent supportive housing, as defined in Minnesota Statutes,
section 462A.36, subdivision 1, paragraph (e).
new text end

new text begin Subd. 3.new text end

new text begin Grant program.new text end

new text begin (a) The commissioner must provide grants to eligible
organizations as provided in this subdivision.
new text end

new text begin (b) An organization that seeks to obtain a grant must apply to the commissioner by a
date determined by the commissioner, and certify:
new text end

new text begin (1) that it is eligible for a grant under subdivision 2;
new text end

new text begin (2) the total number of rental housing units it owns or controls in the state, including
but not limited to the rental housing units it provides under subdivision 2, clause (5); and
new text end

new text begin (3) information on significant detrimental financial impacts due to recent economic and
social conditions.
new text end

new text begin (c) The amount of a grant to an eligible organization equals:
new text end

new text begin (1) the number of units an eligible organization certifies that it owns or controls in the
state divided by the total number of units certified by all eligible organizations; multiplied
by
new text end

new text begin (2) the total amount of the appropriation for this grant program.
new text end

new text begin (d) No grant to an eligible organization may exceed $4,000 per certified unit. The per-unit
amount of the grant for each eligible organization must be calculated based on the total
number of units each eligible organization owns or controls in the state and is not limited
to the number of units that qualify it as an eligible organization under subdivision 2, clause
(5).
new text end

new text begin (e) Grantees must use grant funds to maintain or improve the housing stability of tenants
by expending funds on:
new text end

new text begin (1) property maintenance, improvements, and security;
new text end

new text begin (2) providing services, including services and programs that promote economic and
social mobility;
new text end

new text begin (3) efforts to attract and retain employees that will assist in providing services and support
to tenants; or
new text end

new text begin (4) forgiveness of all or a portion of rent balances owed by former or current tenants.
new text end

new text begin The commissioner may approve additional uses of this fund that would have a beneficial
impact on the housing stability of tenants.
new text end

new text begin Subd. 4.new text end

new text begin Reporting and financial audit.new text end

new text begin Each grantee must submit a report to the
commissioner by September 30, 2024, on the use of those funds in a form determined by
the commissioner. By January 15, 2025, each grantee must report to the chair and ranking
minority members of the legislative committees having jurisdiction over housing on the use
of funds awarded under this section.
new text end

Sec. 9. new text begin COMMUNITY-BASED FIRST-GENERATION HOMEBUYERS
ASSISTANCE PROGRAM.
new text end

new text begin Subdivision 1.new text end

new text begin Establishment.new text end

new text begin A community-based first-generation homebuyers down
payment assistance program is established as a pilot project 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 households.
new text end

new text begin Subd. 2.new text end

new text begin Eligible household.new text end

new text begin For purposes of this section, "eligible household" means
a household:
new text end

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

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

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

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

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

new text begin At least one adult household member meeting the criteria under clause (2) 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.
new text end

new text begin Subd. 3.new text end

new text begin Use of funds.new text end

new text begin 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. 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 loan that is forgivable
at a rate of 20 percent per year on the day after the anniversary date of the note. 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. 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.
new text end

new text begin Subd. 4.new text end

new text begin Administration.new text end

new text begin 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 households. Administrative costs
must not exceed $3,200 per loan.
new text end

new text begin Subd. 5.new text end

new text begin Report to legislature.new text end

new text begin 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:
new text end

new text begin (1) the number and amount of loans closed;
new text end

new text begin (2) the median loan amount;
new text end

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

new text begin (4) the median home purchase price;
new text end

new text begin (5) the interest rates and types of mortgages;
new text end

new text begin (6) the credit scores of both applicants and households served;
new text end

new text begin (7) the total amount returned to the fund; and
new text end

new text begin (8) the number and amount of loans issued by county.
new text end

Sec. 10. new text begin HIGH-RISE SPRINKLER SYSTEM GRANT PROGRAM.
new text end

new text begin Subdivision 1.new text end

new text begin Definitions.new text end

new text begin (a) The definitions in this subdivision apply to this section.
new text end

new text begin (b) "Eligible building" means an existing residential building in which:
new text end

new text begin (1) at least one story used for human occupancy is 75 feet or more above the lowest
level of fire department vehicle access; and
new text end

new text begin (2) at least two-thirds of its units are affordable to households with an annual income at
or below 50 percent of the area median income as determined by the United States
Department of Housing and Urban Development, adjusted for family size, that is paying
no more than 30 percent of annual income on rent.
new text end

new text begin (c) "Sprinkler system" means the same as the term "fire protection system" as defined
in Minnesota Statutes, section 299M.01.
new text end

new text begin Subd. 2.new text end

new text begin Grant program.new text end

new text begin The commissioner of the Housing Finance Agency must make
grants to owners of eligible buildings for installation of sprinkler systems and, if necessary,
for relocation of residents during the installation of sprinkler systems. Priority shall be given
to nonprofit applicants. The maximum grant per eligible building shall be $2,000,000. Each
grant to a nonprofit organization shall require a 25 percent match. Each grant to a for-profit
organization shall require a 50 percent match.
new text end

Sec. 11. new text begin HOMEOWNERSHIP INVESTMENT GRANTS PROGRAM.
new text end

new text begin Subdivision 1.new text end

new text begin Grant program established.new text end

new text begin The commissioner of the Minnesota Housing
Finance Agency must establish and administer a program to support projects that encourage
affordable homeownership in accordance with this section.
new text end

new text begin Subd. 2.new text end

new text begin Eligible projects.new text end

new text begin The commissioner may award a grant under this section for
a project that invests in the following:
new text end

new text begin (1) housing development to increase the supply of affordable owner-occupied homes;
new text end

new text begin (2) financing programs for affordable owner-occupied new home construction;
new text end

new text begin (3) acquisition, rehabilitation, and resale of affordable owner-occupied homes or homes
to be converted to owner-occupied homes; or
new text end

new text begin (4) establishing revolving loan accounts at community development financial institutions.
new text end

new text begin Subd. 3.new text end

new text begin Eligible organization.new text end

new text begin To be eligible for a grant under this section, a nonprofit
organization must:
new text end

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

new text begin (2) have primary operations located in Minnesota;
new text end

new text begin (3) be certified as a community development financial institution by the United States
Department of the Treasury; and
new text end

new text begin (4) provide affordable housing lending or financing programs.
new text end

new text begin Subd. 4.new text end

new text begin Commissioner duties.new text end

new text begin The commissioner shall consult with eligible
organizations and develop forms, applications, and reporting requirements for use by eligible
organizations. All organizations applying for a grant must include as part of their application
a plan to create new affordable home ownership and home preservation opportunities for
targeted areas.
new text end

Sec. 12. new text begin FIRST-TIME HOMEBUYER, FEE-BASED HOME PURCHASE
FINANCING PROGRAM.
new text end

new text begin Subdivision 1.new text end

new text begin Administration.new text end

new text begin A first-time homebuyer, fee-based home purchasing
financing program is established as a pilot project under the administration of NeighborWorks
Home Partners.
new text end

new text begin Subd. 2.new text end

new text begin Eligible homebuyer.new text end

new text begin For the purposes of this section, an "eligible homebuyer"
means an individual:
new text end

new text begin (1) whose income is at or below 130 percent of area median income;
new text end

new 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;
new text end

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

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

new text begin Subd. 3.new text end

new text begin Eligible property.new text end

new text begin (a) For the purposes of this section, an "eligible property"
means residential real property that is a condominium, a townhouse, a single-family home,
a manufactured home titled as real property, or another building containing up to four
dwelling units.
new text end

new text begin (b) An eligible property may include property subject to a ground lease with a community
land trust, property on Indian Trust Land, or property participating in a shared equity
homeownership program.
new text end

new text begin Subd. 4.new text end

new text begin Use of funds.new text end

new text begin NeighborWorks Home Partners shall use the money appropriated
to this program to provide forgivable grants of down payment assistance not to exceed 30
percent of the price of the eligible property that an eligible homebuyer seeks to purchase.
NeighborWorks Home Partners shall provide grants to eligible homebuyers using no-interest,
fee-based loans to finance the purchase of eligible properties. In making grants,
NeighborWorks Home Partners shall determine the circumstances, terms, and conditions
under which all or any portion of the grant will be repaid and shall determine the appropriate
security required for a repayment. The commissioner must ensure grant awards are distributed
statewide. The administrative fees for operating the program shall not exceed five percent
of the appropriation. An eligible homebuyer may use the funds in conjunction with any
other funding programs.
new text end

new text begin Subd. 5.new text end

new text begin Conditions of receiving a grant.new text end

new text begin (a) To qualify for assistance under this section,
an eligible homebuyer must:
new text end

new text begin (1) complete an approved homebuyer education course prior to signing a purchase
agreement;
new text end

new text begin (2) complete an approved landlord education course prior to signing a purchase agreement
if the property being purchased contains more than one dwelling unit;
new text end

new text begin (3) contribute a minimum of $1,000 to down payment or closing costs; and
new text end

new text begin (4) occupy the purchased property as the homebuyer's primary residence.
new text end

new text begin (b) NeighborWorks Home Partners may establish additional requirements to ensure that
program participants comply with this subdivision.
new text end

new text begin Subd. 6.new text end

new text begin Reports.new text end

new text begin By January 15 and July 15 each year, NeighborWorks Home Partners
must report to the chairs and ranking minority members of the legislative committees with
jurisdiction over housing finance and policy the following information:
new text end

new text begin (1) the number and amount of grants issued;
new text end

new text begin (2) the median grant amount;
new text end

new text begin (3) the number and amount of grants issued by race or ethnic categories;
new text end

new text begin (4) the median home purchase price;
new text end

new text begin (5) the total amount returned to the fund; and
new text end

new text begin (6) the number and amount of grants issued by county.
new text end

Sec. 13. new text begin MANUFACTURED HOME LENDING GRANTS.
new text end

new text begin Subdivision 1.new text end

new text begin Program established.new text end

new text begin The commissioner of the Minnesota Housing
Finance Agency must award a grant to an organization for manufactured home lending
services under subdivision 2.
new text end

new text begin Subd. 2.new text end

new text begin Eligible services.new text end

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

new text begin (1) new manufactured home financing programs;
new text end

new text begin (2) manufactured home down payment assistance; or
new text end

new text begin (3) manufactured home repair, renovation, removal, and site preparation financing
programs.
new text end

new text begin Subd. 3.new text end

new text begin Eligible organization.new text end

new text begin To be eligible for a grant under this section, a nonprofit
organization must:
new text end

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

new text begin (2) have primary operations located in Minnesota;
new text end

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

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

new text begin Subd. 4.new text end

new text begin Commissioner duties.new text end

new text begin 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.
new text end

new text begin Subd. 5.new text end

new text begin Loan payments and interest.new text end

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

ARTICLE 3

BONDING AUTHORITY

Section 1.

Minnesota Statutes 2022, section 462A.22, subdivision 1, is amended to read:


Subdivision 1.

Debt ceiling.

The aggregate principal amount of new text begin general obligation new text end 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
$5,000,000,000.

Sec. 2.

Minnesota Statutes 2022, section 462A.36, is amended by adding a subdivision to
read:


new text begin Subd. 2a.new text end

new text begin Refunding bonds.new text end

new text begin (a) The agency may issue nonprofit housing bonds in one
or more series to refund bonds authorized in subdivision 2. The amount of refunding nonprofit
housing bonds that may be issued from time to time will not be subject to the dollar limitation
contained in subdivision 2 nor will those bonds be included in computing the amount of
bonds that may be issued within that dollar limitation.
new text end

new text begin (b) In the refunding of nonprofit housing bonds, each bond must be called for redemption
prior to its maturity in accordance with its terms no later than the earliest date on which it
may be redeemed. No refunding bonds may be issued unless as of the date of the refunding
bonds the present value of the dollar amount of the debt service on the refunding bonds,
computed to their stated maturity dates, is lower than the present value of the dollar amount
of debt service on all nonprofit housing bonds refunded computed to their stated maturity
dates. For purposes of this subdivision, "present value of the dollar amount of debt service"
means the dollar amount of debt service to be paid, discounted to the nominal date of the
refunding bonds at a rate equal to the yield on the refunding bonds.
new text end

new text begin (c) If as a result of the issuance of refunding bonds the amount of debt service for an
annual period is less than the amount transferred by the commissioner of management and
budget to pay debt service for that annual period, the agency must deduct the excess amount
from the actual amount of debt service on those bonds certified for the next subsequent
annual period.
new text end

Sec. 3.

Minnesota Statutes 2022, section 462A.36, subdivision 4, is amended to read:


Subd. 4.

Appropriation; payment to agency or trustee.

(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 subdivision 2.

(b) Each July 15, beginning in 2009 and through 2031, if any nonprofit housing bonds
issued under subdivision 2new text begin , or nonprofit housing bonds issued to refund those bonds,new text end remain
outstanding, the commissioner of management and budget must transfer to the nonprofit
housing bond account established under section 462A.21, subdivision 32, the amount
certified under paragraph (a), not to exceed $2,400,000 annually. The amounts necessary
to make the transfers are appropriated from the general fund to the commissioner of
management and budget.

(c) The agency may pledge to the payment of the nonprofit housing bonds the payments
to be made by the state under this section.

Sec. 4.

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


new text begin Subd. 2k.new text end

new text begin Refunding bonds.new text end

new text begin (a) The agency may issue housing infrastructure bonds in
one or more series to refund bonds authorized in this section. The amount of refunding
housing infrastructure bonds that may be issued from time to time will not be subject to the
dollar limitation contained in any of the authorizations in this section nor will those bonds
be included in computing the amount of bonds that may be issued within those dollar
limitations.
new text end

new text begin (b) In the refunding of housing infrastructure bonds, each bond must be called for
redemption prior to its maturity in accordance with its terms no later than the earliest date
on which it may be redeemed. No refunding bonds may be issued unless as of the date of
the refunding bonds the present value of the dollar amount of the debt service on the
refunding bonds, computed to their stated maturity dates, is lower than the present value of
the dollar amount of debt service on all housing infrastructure bonds refunded computed to
their stated maturity dates. For purposes of this subdivision, "present value of the dollar
amount of debt service" means the dollar amount of debt service to be paid, discounted to
the nominal date of the refunding bonds at a rate equal to the yield on the refunding bonds.
new text end

new text begin (c) If as a result of the issuance of refunding bonds the amount of debt service for an
annual period is less than the amount transferred by the commissioner of management and
budget to pay debt service for that annual period, the agency must deduct the excess amount
from the actual amount of debt service on those bonds certified for the next subsequent
annual period.
new text end

Sec. 5.

Minnesota Statutes 2022, section 462A.37, subdivision 4, is amended to read:


Subd. 4.

Appropriation; payment to agency or trustee.

(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 subdivision 2.

(b) Each July 15, beginning in 2013 and through 2035, if any housing infrastructure
bonds issued under subdivision 2new text begin , or housing infrastructure bonds issued to refund those
bonds,
new text end remain outstanding, the commissioner of management and budget must transfer to
the deleted text begin affordabledeleted text end housing new text begin infrastructure new text end bond account established under section 462A.21,
subdivision 33
, the amount certified under paragraph (a), not to exceed $2,200,000 annually.
The amounts necessary to make the transfers are appropriated from the general fund to the
commissioner of management and budget.

(c) The agency may pledge to the payment of the housing infrastructure bonds the
payments to be made by the state under this section.

Sec. 6.

Minnesota Statutes 2022, 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 2anew text begin , or housing infrastructure bonds issued to refund those
bonds,
new text end 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 2bnew text begin , or housing infrastructure bonds issued to refund those
bonds,
new text end 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 2cnew text begin , or housing infrastructure bonds issued to refund those
bonds,
new text end 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 2dnew text begin , or housing infrastructure bonds issued to refund those
bonds,
new text end 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 2enew text begin , or housing infrastructure bonds issued to refund those
bonds,
new text end 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 2fnew text begin , or housing infrastructure bonds issued to refund those
bonds,
new text end 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 2gnew text begin , or housing infrastructure bonds issued to refund those
bonds,
new text end 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 2hnew text begin , or housing infrastructure bonds issued to refund those
bonds,
new text end 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) The agency may pledge to the payment of the housing infrastructure bonds the
payments to be made by the state under this section.

ARTICLE 4

ELIGIBILITY AND USES

Section 1.

Minnesota Statutes 2022, 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. new text begin Rehabilitation may include the addition or
rehabilitation of a detached accessory dwelling unit.
new text end 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 conservation related improvements. 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 deleted text begin lessdeleted text end new text begin fewernew text end dwelling units, one of which is occupied by the owner.

Sec. 2.

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


new text begin Subd. 42.new text end

new text begin Housing disparities.new text end

new text begin The agency must prioritize its use of appropriations for
any program under this chapter to serve households most affected by housing disparities.
new text end

Sec. 3.

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


new text begin Subd. 43.new text end

new text begin Special purpose credit program.new text end

new text begin The agency may establish special purpose
credit programs to assist one or more economically disadvantaged classes of persons in
order to address the effects of historic and current discrimination which resulted in limiting
access to housing credit by persons on the basis of race, color, ethnicity, or national origin.
A special purpose credit program may include a wide variety of remedies, including but
not limited to loans or other financial assistance, based on current, documented need as
determined by the agency.
new text end

Sec. 4.

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


new text begin Subd. 44.new text end

new text begin Indian Tribes.new text end

new text begin 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 funding authorized under this chapter.
new text end

Sec. 5.

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


new text begin Subd. 17.new text end

new text begin Translation services.new text end

new text begin It shall provide meaningful access to agency programs
and services for individuals who have limited English proficiency. This may include
providing, at the individual's request, interpretation or translation services in the individual's
preferred language. The agency will continue to follow all federal and state laws, regulations,
and guidance regarding limited English proficiency.
new text end

Sec. 6.

Minnesota Statutes 2022, section 462A.2035, subdivision 1b, is amended to read:


Subd. 1b.

Manufactured home park infrastructure grantsnew text begin and loansnew text end .

Eligible
recipients may use manufactured home park infrastructure grantsnew text begin and loansnew text end under this
program for:

(1) acquisition of and improvements in manufactured home parks; and

(2) infrastructure, including storm shelters and community facilities.

Sec. 7.

Minnesota Statutes 2022, section 462A.204, subdivision 3, is amended to read:


Subd. 3.

Set aside.

At least one grant must be awarded in an area located outside of the
metropolitan area. A county, a group of contiguous counties jointly acting together, a Tribe,
a group of Tribes, or a community-based nonprofit organization deleted text begin with a sponsoring resolution
from each of the county boards of the counties located within its operating jurisdiction
deleted text end may
apply for and receive grants for areas located outside the metropolitan area.

new text begin EFFECTIVE DATE.new text end

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

Sec. 8.

Minnesota Statutes 2022, section 462A.21, subdivision 3b, is amended to read:


Subd. 3b.

Capacity building grants.

It may make capacity building grants to nonprofit
organizations, local government units, Indian tribes, and Indian tribal organizations to
expand their capacity to provide affordable housing and housing-related services. The grants
may be used to assess housing needs and to develop and implement strategies to meet those
needs, including new text begin but not limited to new text end the creation or preservation of affordable housing,
prepurchase and postpurchase counseling and associated administrative costs, and the linking
of supportive services to the housing. The agency shall adopt rulesnew text begin , policies, and proceduresnew text end
specifying the eligible uses of grant money. Funding priority deleted text begin mustdeleted text end new text begin maynew text end be given to those
applicants that include low-income persons in their membership, have provided
housing-related services to low-income people, and demonstrate a local commitment of
local resources, which may include in-kind contributions. deleted text begin Grants under this subdivision
may be made only with specific appropriations by the legislature.
deleted text end

Sec. 9.

Minnesota Statutes 2022, section 462A.33, subdivision 2, is amended to read:


Subd. 2.

Eligible recipients.

Challenge grants or loans may be made to a city, a federally
recognized American Indian Tribe or subdivision located in Minnesota, a Tribal housing
corporation, a private developer, a nonprofit organization, new text begin a school district, a cooperative
unit, as defined in section 123A.24, subdivision 2, a charter school,
new text end or the owner of the
housing, including individuals. For the purpose of this section, "city" has the meaning given
it in section 462A.03, subdivision 21. To the extent practicable, grants and loans shall be
made so that an approximately equal number of housing units are financed in the metropolitan
area and in the nonmetropolitan area.

Sec. 10.

Minnesota Statutes 2022, section 462A.33, is amended by adding a subdivision
to read:


new text begin Subd. 9.new text end

new text begin Grant funding to schools.new text end

new text begin A school district; a cooperative unit, as defined in
section 123A.24, subdivision 2; or a charter school may receive funding under this section
in the form of a grant less than $100,000. A school district, intermediate district, or charter
school that uses a grant under this section to construct a home for owner occupancy must
require the future occupant to participate in the homeownership education counseling and
training program under section 462A.209.
new text end

Sec. 11.

Minnesota Statutes 2022, section 462A.37, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

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

(b) "Abandoned property" has the meaning given in section 117.025, subdivision 5.

(c) "Community land trust" means an entity that meets the requirements of section
462A.31, subdivisions 1 and 2.

(d) "Debt service" means the amount payable in any fiscal year of principal, premium,
if any, and interest on housing infrastructure bonds and the fees, charges, and expenses
related to the bonds.

(e) "Foreclosed property" means residential property where foreclosure proceedings
have been initiated or have been completed and title transferred or where title is transferred
in lieu of foreclosure.

(f) "Housing infrastructure bonds" means bonds issued by the agency under this chapter
that:

(1) are qualified 501(c)(3) bonds, within the meaning of section 145(a) of the Internal
Revenue Code;

(2) finance qualified residential rental projects within the meaning of section 142(d) of
the Internal Revenue Code;new text begin or
new text end

deleted text begin (3) finance the construction or rehabilitation of single-family houses that qualify for
mortgage financing within the meaning of section 143 of the Internal Revenue Code; or
deleted text end

deleted text begin (4)deleted text end new text begin (3)new text end are tax-exempt bonds that are not private activity bonds, within the meaning of
section 141(a) of the Internal Revenue Code, for the purpose of financing or refinancing
affordable housing authorized under this chapter.

(g) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.

(h) "Senior" means a person 55 years of age or older deleted text begin with an annual income not greater
than 50 percent of:
deleted text end new text begin .
new text end

deleted text begin (1) the metropolitan area median income for persons in the metropolitan area; or
deleted text end

deleted text begin (2) the statewide median income for persons outside the metropolitan area.
deleted text end

new text begin (i) "Senior household" means a household with one or more senior members and with
an annual combined income not greater than 50 percent of:
new text end

new text begin (1) the metropolitan area median income for persons in the metropolitan area; or
new text end

new text begin (2) the statewide median income for persons outside the metropolitan area.
new text end

deleted text begin (i)deleted text end new text begin (j)new text end "Senior housing" means housing intended and operated for occupancy by deleted text begin at least
one senior per unit
deleted text end new text begin senior householdsnew text end with at least 80 percent of the units occupied by deleted text begin at
least one senior per unit
deleted text end new text begin senior householdsnew text end , and for which there is publication of, and
adherence to, policies and procedures that demonstrate an intent by the owner or manager
to provide housing for seniors. Senior housing may be developed in conjunction with and
as a distinct portion of mixed-income senior housing developments that use a variety of
public or private financing sources.

deleted text begin (j)deleted text end new text begin (k)new text end "Supportive housing" means housing that is not time-limited and provides or
coordinates with linkages to services necessary for residents to maintain housing stability
and maximize opportunities for education and employment.

Sec. 12.

Minnesota Statutes 2022, 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 deleted text begin clausedeleted text end new text begin clausesnew text end
(4)new text begin and (7)new text end , 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 deleted text begin anddeleted text end new text begin ,new text end rehabilitationnew text begin , and replacementnew text end 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; deleted text begin and
deleted text end

(7) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
of single-family housingdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (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.
new text end

(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
deleted text begin seniorsdeleted text end new text begin senior householdsnew text end ;

(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;new text begin
and
new text end

(4) deleted text begin provide a service plan containing the elements of clause (3) reviewed by the housing
authority, economic development authority, public housing authority, or community
development agency that has an area of operation for the jurisdiction in which the project
is located; and
deleted text end

deleted text begin (5)deleted text end include households with incomes that do not exceed 30 percent of the median
household income for the metropolitan area.

new text begin (d) new text end 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.

new text begin (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.
new text end

new text begin (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:
new text end

new text begin (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; and
new text end

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

new text begin (A) soundproofing between shared walls for first and second floor units;
new text end

new text begin (B) no florescent lighting in units and common areas;
new text end

new text begin (C) low-fume paint;
new text end

new text begin (D) low-chemical carpet; and
new text end

new text begin (E) low-chemical carpet glue in units and common areas.
new text end

new text begin Nothing in this paragraph relieves a project funded by the agency from meeting other
applicable accessibility requirements.
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. 13.

Minnesota Statutes 2022, section 462A.38, subdivision 1, is amended to read:


Subdivision 1.

Establishment.

A workforce and affordable homeownership development
program is established to award homeownership development grants to cities, new text begin counties,
new text end Tribal governments, nonprofit organizations, cooperatives created under chapter 308A or
308B, and community land trusts created for the purposes outlined in section 462A.31,
subdivision
1, for development of workforce and affordable homeownership projects. The
purpose of the program is to increase the supply of workforce and affordable, owner-occupied
multifamily or single-family housing throughout Minnesota.

Sec. 14.

Minnesota Statutes 2022, 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 deleted text begin thedeleted text end new text begin anew text end metropolitan deleted text begin areadeleted text end new text begin countynew text end as defined in section 473.121, subdivision deleted text begin 2deleted text end new text begin 4new text end , 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 deleted text begin thedeleted text end new text begin anew text end
metropolitan deleted text begin areadeleted text end new text begin countynew text end as defined in section 473.121, subdivision deleted text begin 2deleted text end new text begin 4new text end ; new text begin federally recognized
Tribal reservations;
new text end 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. 15.

Minnesota Statutes 2022, section 462A.39, subdivision 5, is amended to read:


Subd. 5.

Allocation.

The amount of a grant or deferred loans may not exceed deleted text begin 25deleted text end new text begin 50new text end
percent of the rental housing development project cost. The commissioner shall not award
a grant or deferred loans to deleted text begin a citydeleted text end new text begin an eligible project areanew text end without certification by the deleted text begin citydeleted text end new text begin
eligible project area
new text end that the amount of the grant or deferred loans shall be matched by a
local unit of government, business, deleted text begin ordeleted text end nonprofit organizationnew text begin , or federally recognized Tribe,new text end
with $1 for every $2 provided in grant or deferred loans funds.

Sec. 16.

Laws 2021, First Special Session chapter 8, article 1, section 3, subdivision 11,
is amended to read:


Subd. 11.

Affordable Rental Investment Fund

4,218,000
4,218,000

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

(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.

(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 begin EFFECTIVE DATE.new text end

new text begin This section is effective retroactively from July 1, 2021.
new text end

ARTICLE 5

METROPOLITAN SALES TAX AND HOUSING AID

Section 1.

Minnesota Statutes 2022, section 297A.99, subdivision 1, is amended to read:


Subdivision 1.

Authorization; scope.

(a) A political subdivision of this state may impose
a general sales tax (1) under section 297A.992, (2) under section deleted text begin 297A.993deleted text end new text begin 297A.9925new text end , (3)new text begin
under section 297A.993, (4)
new text end if permitted by special law, or deleted text begin (4)deleted text end new text begin (5)new text end if the political subdivision
enacted and imposed the tax before January 1, 1982, and its predecessor provision.

(b) This section governs the imposition of a general sales tax by the political subdivision.
The provisions of this section preempt the provisions of any special law:

(1) enacted before June 2, 1997, or

(2) enacted on or after June 2, 1997, that does not explicitly exempt the special law
provision from this section's rules by reference.

(c) This section does not apply to or preempt a sales tax on motor vehicles. Beginning
July 1, 2019, no political subdivision may impose a special excise tax on motor vehicles
unless it is imposed under section 297A.993.

(d) A political subdivision may not advertise or expend funds for the promotion of a
referendum to support imposing a local sales tax and may only spend funds related to
imposing a local sales tax to:

(1) conduct the referendum;

(2) disseminate information included in the resolution adopted under subdivision 2, but
only if the disseminated information includes a list of specific projects and the cost of each
individual project;

(3) provide notice of, and conduct public forums at which proponents and opponents on
the merits of the referendum are given equal time to express their opinions on the merits of
the referendum;

(4) provide facts and data on the impact of the proposed local sales tax on consumer
purchases; and

(5) provide facts and data related to the individual programs and projects to be funded
with the local sales tax.

Sec. 2.

new text begin [297A.9925] METROPOLITAN REGION SALES AND USE TAX.
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) "Metropolitan Council" or "council" means the Metropolitan Council established by
section 473.123.
new text end

new text begin (c) "Metropolitan county" has the meaning given in section 473.121, subdivision 4.
new text end

new text begin (d) "Metropolitan sales tax" means the metropolitan region sales and use tax imposed
under this section.
new text end

new text begin Subd. 2.new text end

new text begin Sales tax imposition; rate.new text end

new text begin Notwithstanding section 473.123, subdivision 1,
the Metropolitan Council must impose a metropolitan region sales and use tax at a rate of
0.25 percent on retail sales made in the metropolitan counties or to a destination in the
metropolitan counties.
new text end

new text begin Subd. 3.new text end

new text begin Administration; collection; enforcement.new text end

new text begin Except as otherwise provided in
this section, the provisions of section 297A.99, subdivisions 4, and 6 to 12a, govern the
administration, collection, and enforcement of the metropolitan sales tax.
new text end

new text begin Subd. 4.new text end

new text begin Distribution.new text end

new text begin Notwithstanding section 297A.94, proceeds of the metropolitan
sales tax are distributed:
new text end

new text begin (1) 25 percent to the state rent assistance account under section 462A.2095;
new text end

new text begin (2) 25 percent to the metropolitan city aid account in the housing assistance fund under
section 477A.37; and
new text end

new text begin (3) 50 percent to the metropolitan county aid account in the housing assistance fund
under section 477A.37.
new text end

new text begin EFFECTIVE DATE; APPLICATION.new text end

new text begin This section is effective for sales and purchases
made after October 1, 2023, and applies in the metropolitan counties, as defined by Minnesota
Statutes, section 473.121, subdivision 4.
new text end

Sec. 3.

new text begin [477A.35] LOCAL AFFORDABLE HOUSING AID.
new text end

new text begin Subdivision 1.new text end

new text begin Purpose.new text end

new text begin The purpose of this section is to help metropolitan local
governments to develop and preserve affordable housing within their jurisdictions in order
to keep families from losing housing and to help those experiencing homelessness find
housing.
new text end

new text begin Subd. 2.new text end

new text begin Definitions.new text end

new text begin For the purposes of this section, the following terms have the
meanings given:
new text end

new text begin (1) "city distribution factor" means the number of households in a tier I city that are
cost-burdened divided by the total number of households that are cost-burdened in tier I
cities. The number of cost-burdened households shall be determined using the most recent
estimates or experimental estimates provided by the American Community Survey of the
United States Census Bureau as of May 1 of the aid calculation year;
new text end

new text begin (2) "cost-burdened household" means a household in which gross rent is 30 percent or
more of household income or in which homeownership costs are 30 percent or more of
household income;
new text end

new text begin (3) "county distribution factor" means the number of households in a county that are
cost-burdened divided by the total number of households in metropolitan counties that are
cost-burdened. The number of cost-burdened households shall be determined using the most
recent estimates or experimental estimates provided by the American Community Survey
of the United States Census Bureau as of May 1 of the aid calculation year;
new text end

new text begin (4) "metropolitan area" has the meaning given in section 473.121, subdivision 2;
new text end

new text begin (5) "metropolitan county" has the meaning given in section 473.121, subdivision 4;
new text end

new text begin (6) "population" has the meaning given in section 477A.011, subdivision 3; and
new text end

new text begin (7) "tier I city" means a statutory or home rule charter city that is a city of the first,
second, or third class and is located in a metropolitan county.
new text end

new text begin Subd. 3.new text end

new text begin Distribution.new text end

new text begin (a) The commissioner of revenue shall calculate the amount of
aid to distribute to each county under this section as the sum of:
new text end

new text begin (1) three percent of the total amount available to counties under this section; plus
new text end

new text begin (2) 79 percent of the total amount available to counties under this section, multiplied by
the county distribution factor.
new text end

new text begin (b) The commissioner of revenue shall calculate the amount of aid to distribute to each
tier I city under this section as:
new text end

new text begin (1) the tier I city's city distribution factor; multiplied by
new text end

new text begin (2) the total amount available to cities under this section.
new text end

new text begin Subd. 4.new text end

new text begin Qualifying projects.new text end

new text begin (a) Qualifying projects shall include: (1) emergency rental
assistance for households earning less than 80 percent of area median income as determined
by the United States Department of Housing and Urban Development; (2) financial support
to nonprofit affordable housing providers in their mission to provide safe, dignified,
affordable and supportive housing; and (3) projects designed for the purpose of construction,
acquisition, rehabilitation, demolition or removal of existing structures, construction
financing, permanent financing, interest rate reduction, refinancing, and gap financing of
housing to provide affordable housing to households that have incomes which do not exceed,
for homeownership projects, 115 percent of the greater of state or area median income as
determined by the United States Department of Housing and Urban Development, and for
rental housing projects, 80 percent of the greater of state or area median income as determined
by the United States Department of Housing and Urban Development, except that the housing
developed or rehabilitated with funds under this section must be affordable to the local work
force.
new text end

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

new text begin (b) Gap financing is either:
new text end

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

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

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

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

new text begin (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; and
new text end

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

new text begin (A) soundproofing between shared walls for first and second floor units;
new text end

new text begin (B) no florescent lighting in units and common areas;
new text end

new text begin (C) low-fume paint;
new text end

new text begin (D) low-chemical carpet; and
new text end

new text begin (E) low-chemical carpet glue in units and common areas.
new text end

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

new text begin Subd. 5.new text end

new text begin Use of proceeds.new text end

new text begin (a) Any funds distributed under this section must be spent on
a qualifying project. Funds are considered spent on a qualifying project if:
new text end

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

new text begin (2) the funds are transferred to a local housing trust fund.
new text end

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

new text begin (b) Funds must be spent by December 31 in the third year following the year after the
aid was received.
new text end

new text begin Subd. 6.new text end

new text begin Administration.new text end

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

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

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

new text begin (1) fails to spend the funds within the time allowed under subdivision 5, paragraph (b);
new text end

new text begin (2) spends the funds on anything other than a qualifying project; or
new text end

new text begin (3) fails to submit a report documenting use of the funds.
new text end

new text begin (d) The commissioner of revenue must stop distributing funds to a tier I city or county
that, in three consecutive years, the Minnesota Housing Finance Agency has reported,
pursuant to paragraph (b), to have failed to use funds, misused funds, or failed to report on
its use of funds.
new text end

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

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

new text begin Subd. 7.new text end

new text begin County consultation with local governments.new text end

new text begin A county that receives funding
under this section shall regularly consult with the local governments in the jurisdictions of
which its qualifying projects are planned or located.
new text end

new text begin EFFECTIVE DATE.new text end

new text begin This section is effective beginning with aids payable in 2024.
new text end

Sec. 4.

new text begin [477A.37] HOUSING ASSISTANCE FUND.
new text end

new text begin Subdivision 1.new text end

new text begin Fund established.new text end

new text begin A housing assistance fund is established in the state
treasury. The fund consists of money as provided under section 297A.9925, and any other
money donated, allotted, transferred, or otherwise provided to the fund.
new text end

new text begin Subd. 2.new text end

new text begin Metropolitan county aid account; appropriation.new text end

new text begin (a) A metropolitan county
aid account is established in the housing assistance fund. The account consists of money as
provided under section 297A.9925, and any other money donated, allotted, transferred, or
otherwise provided to the account.
new text end

new text begin (b) Money in the metropolitan county aid account is annually appropriated to the
commissioner of revenue for payments to counties as provided under Minnesota Statutes,
section 477A.35.
new text end

new text begin Subd. 3.new text end

new text begin Metropolitan city aid account; appropriation.new text end

new text begin (a) A metropolitan city aid
account is established in the housing assistance fund. The account consists of money as
provided under section 297A.9925, and any other money donated, allotted, transferred, or
otherwise provided to the account.
new text end

new text begin (b) Money in the metropolitan city aid account is annually appropriated to the
commissioner of revenue for payments to cities as provided under Minnesota Statutes,
section 477A.35.
new text end

new text begin EFFECTIVE DATE.new text end

new text begin This section is effective July 1, 2023.
new text end

ARTICLE 6

MISCELLANEOUS

Section 1.

Minnesota Statutes 2022, section 82.75, subdivision 8, is amended to read:


Subd. 8.

Accrued interest.

(a) Each broker shall maintain a pooled interest-bearing trust
account for deposit of client funds. The interest accruing on the trust account, less reasonable
transaction costs, must be paid to the deleted text begin commissioner of management and budgetdeleted text end new text begin Minnesota
Housing Finance Agency
new text end for deposit in the housing trust fund account created under section
462A.201 unless otherwise specified pursuant to an expressed written agreement between
the parties to a transaction.

(b) For an account created under paragraph (a), each broker shall direct the financial
institution to:

(1) pay the interest, less reasonable transaction costs, computed in accordance with the
financial institution's standard accounting practice, at least quarterly, to the deleted text begin commissioner
of management and budget
deleted text end new text begin Minnesota Housing Finance Agencynew text end ; and

(2) send a statement to the deleted text begin commissioner of management and budgetdeleted text end new text begin Minnesota Housing
Finance Agency
new text end showing the name of the broker for whom the payment is made, the rate
of interest applied, the amount of service charges deducted, and the account balance for the
period in which the report is made.

The deleted text begin commissioner of management and budgetdeleted text end new text begin Minnesota Housing Finance Agencynew text end shall
credit the amount collected under this subdivision to the housing trust fund account
established in section 462A.201.

(c) The financial institution must promptly notify the deleted text begin commissionerdeleted text end new text begin agencynew text end if a draft
drawn on the account is dishonored. A draft is not dishonored if a stop payment order is
requested by an issuer who has a good faith defense to payment on the draft.

new text begin (d) By January 15 of each year, the Minnesota Housing Finance Agency must report to
the chairs and ranking minority members of the legislative committees with jurisdiction
over housing finance and policy. The report must specify the amount of funds deposited
under this subdivision in the housing trust fund account established under section 462A.201
during the most recently concluded fiscal year. The report must also include a history of
deposits made under this section, in nominal dollar amounts and in the present value of
those amounts, calculated using the Consumer Price Index-All Items (United States city
average).
new text end

new text begin EFFECTIVE DATE.new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 2.

Minnesota Statutes 2022, section 327C.095, subdivision 12, is amended to read:


Subd. 12.

Payment to the Minnesota manufactured home relocation trust fund.

(a)
If a manufactured home owner is required to move due to the conversion of all or a portion
of a manufactured home park to another use, the closure of a park, or cessation of use of
the land as a manufactured home park, the manufactured park owner shall, upon the change
in use, pay to the deleted text begin commissioner of management and budgetdeleted text end new text begin Minnesota Housing Finance
Agency
new text end for deposit in the Minnesota manufactured home relocation trust fund under section
462A.35, the lesser amount of the actual costs of moving or purchasing the manufactured
home approved by the neutral third party and paid by the Minnesota Housing Finance
Agency under subdivision 13, paragraph (a) or (e), or $3,250 for each single section
manufactured home, and $6,000 for each multisection manufactured home, for which a
manufactured home owner has made application for payment of relocation costs under
subdivision 13, paragraph (c). The manufactured home park owner shall make payments
required under this section to the Minnesota manufactured home relocation trust fund within
60 days of receipt of invoice from the neutral third party.

(b) A manufactured home park owner is not required to make the payment prescribed
under paragraph (a), nor is a manufactured home owner entitled to compensation under
subdivision 13, paragraph (a) or (e), if:

(1) the manufactured home park owner relocates the manufactured home owner to
another space in the manufactured home park or to another manufactured home park at the
park owner's expense;

(2) the manufactured home owner is vacating the premises and has informed the
manufactured home park owner or manager of this prior to the mailing date of the closure
statement under subdivision 1;

(3) a manufactured home owner has abandoned the manufactured home, or the
manufactured home owner is not current on the monthly lot rental, personal property taxes;

(4) the manufactured home owner has a pending eviction action for nonpayment of lot
rental amount under section 327C.09, which was filed against the manufactured home owner
prior to the mailing date of the closure statement under subdivision 1, and the writ of recovery
has been ordered by the district court;

(5) the conversion of all or a portion of a manufactured home park to another use, the
closure of a park, or cessation of use of the land as a manufactured home park is the result
of a taking or exercise of the power of eminent domain by a governmental entity or public
utility; or

(6) the owner of the manufactured home is not a resident of the manufactured home
park, as defined in section 327C.015, subdivision 14; the owner of the manufactured home
is a resident, but came to reside in the manufactured home park after the mailing date of
the closure statement under subdivision 1; or the owner of the manufactured home has not
paid the $15 assessment when due under paragraph (c).

(c) If the unencumbered fund balance in the manufactured home relocation trust fund
is less than $2,000,000 as of June 30 of each year, the deleted text begin commissioner of management and
budget
deleted text end new text begin Minnesota Housing Finance Agencynew text end shall assess each manufactured home park
owner by mail the total amount of $15 for each licensed lot in their park, payable on or
before December 15 of that year. Failure to notify and timely assess the manufactured home
park owner by July 31 of any year shall waive the assessment and payment obligations of
the manufactured home park owner for that year. Together with said assessment notice,
each year the deleted text begin commissioner of management and budgetdeleted text end new text begin Minnesota Housing Finance Agencynew text end
shall prepare and distribute to park owners a letter explaining whether funds are being
collected for that year, information about the collection, an invoice for all licensed lots, a
notice for distribution to the residents, and a sample form for the park owners to collect
information on which park residents and lots have been accounted for. In a font no smaller
than 14-point, the notice provided by deleted text begin management and budgetdeleted text end new text begin the Minnesota Housing
Finance Agency
new text end for distribution to residents by the park owner will include the payment
deadline of October 31 and the following language: "THIS IS NOT AN OPTIONAL FEE.
IF YOU OWN A MANUFACTURED HOME ON A LOT YOU RENT IN A
MANUFACTURED HOME PARK, AND YOU RESIDE IN THAT HOME, YOU MUST
PAY WHEN PROVIDED NOTICE." If assessed under this paragraph, the park owner may
recoup the cost of the $15 assessment as a lump sum or as a monthly fee of no more than
$1.25 collected from park residents together with monthly lot rent as provided in section
327C.03, subdivision 6. If, by September 15, a park owner provides the notice to residents
for the $15 lump sum, a park owner may adjust payment for lots in their park that are vacant
or otherwise not eligible for contribution to the trust fund under section 327C.095, subdivision
12, paragraph (b), and for park residents who have not paid the $15 assessment when due
to the park owner by October 31, and deduct from the assessment accordingly. The
deleted text begin commissioner of management and budgetdeleted text end new text begin Minnesota Housing Finance Agencynew text end shall deposit
any payments in the Minnesota manufactured home relocation trust fund and deleted text begin provide to the
Minnesota Housing Finance Agency by December 31, a
deleted text end new text begin maintain an annualnew text end record for each
manufactured home park of the amount received for that park and the number of deductions
made for each of the following reasons: vacant lots, ineligible lots, and uncollected fees.

(d) This subdivision and subdivision 13, paragraph (c), clause (5), are enforceable by
the neutral third party, on behalf of the Minnesota Housing Finance Agency, or by action
in a court of appropriate jurisdiction. The court may award a prevailing party reasonable
attorney fees, court costs, and disbursements.

new text begin EFFECTIVE DATE.new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 3.

Minnesota Statutes 2022, section 327C.095, subdivision 13, is amended to read:


Subd. 13.

Change in use, relocation expenses; payments by park owner.

(a) If a
manufactured home owner is required to relocate due to the conversion of all or a portion
of a manufactured home park to another use, the closure of a manufactured home park, or
cessation of use of the land as a manufactured home park under subdivision 1, and the
manufactured home owner complies with the requirements of this section, the manufactured
home owner is entitled to payment from the Minnesota manufactured home relocation trust
fund equal to the manufactured home owner's actual relocation costs for relocating the
manufactured home to a new location within a 50-mile radius of the park that is being closed,
up to a maximum of $7,000 for a single-section and $12,500 for a multisection manufactured
home. The actual relocation costs must include the reasonable cost of taking down, moving,
and setting up the manufactured home, including equipment rental, utility connection and
disconnection charges, minor repairs, modifications necessary for transportation of the
home, necessary moving permits and insurance, moving costs for any appurtenances, which
meet applicable local, state, and federal building and construction codes.

(b) A manufactured home owner is not entitled to compensation under paragraph (a) if
the manufactured home park owner is not required to make a payment to the Minnesota
manufactured home relocation trust fund under subdivision 12, paragraph (b).

(c) Except as provided in paragraph (e), in order to obtain payment from the Minnesota
manufactured home relocation trust fund, the manufactured home owner shall submit to the
neutral third party and the Minnesota Housing Finance Agency, with a copy to the park
owner, an application for payment, which includes:

(1) a copy of the closure statement under subdivision 1;

(2) a copy of the contract with a moving or towing contractor, which includes the
relocation costs for relocating the manufactured home;

(3) a statement with supporting materials of any additional relocation costs as outlined
in subdivision 1;

(4) a statement certifying that none of the exceptions to receipt of compensation under
subdivision 12, paragraph (b), apply to the manufactured home owner;

(5) a statement from the manufactured park owner that the lot rental is current and that
the annual $15 payment to the Minnesota manufactured home relocation trust fund has been
paid when due; and

(6) a statement from the county where the manufactured home is located certifying that
personal property taxes for the manufactured home are paid through the end of that year.

(d) The neutral third party shall promptly process all payments for completed applications
within 14 days. If the neutral third party has acted reasonably and does not approve or deny
payment within 45 days after receipt of the information set forth in paragraph (c), the
payment is deemed approved. Upon approval and request by the neutral third party, the
Minnesota Housing Finance Agency shall issue two checks in equal amount for 50 percent
of the contract price payable to the mover and towing contractor for relocating the
manufactured home in the amount of the actual relocation cost, plus a check to the home
owner for additional certified costs associated with third-party vendors, that were necessary
in relocating the manufactured home. The moving or towing contractor shall receive 50
percent upon execution of the contract and 50 percent upon completion of the relocation
and approval by the manufactured home owner. The moving or towing contractor may not
apply the funds to any other purpose other than relocation of the manufactured home as
provided in the contract. A copy of the approval must be forwarded by the neutral third
party to the park owner with an invoice for payment of the amount specified in subdivision
12, paragraph (a).

(e) In lieu of collecting a relocation payment from the Minnesota manufactured home
relocation trust fund under paragraph (a), the manufactured home owner may collect an
amount from the fund after reasonable efforts to relocate the manufactured home have failed
due to the age or condition of the manufactured home, or because there are no manufactured
home parks willing or able to accept the manufactured home within a 25-mile radius. A
manufactured home owner may tender title of the manufactured home in the manufactured
home park to the manufactured home park owner, and collect an amount to be determined
by an independent appraisal. The appraiser must be agreed to by both the manufactured
home park owner and the manufactured home owner. If the appraised market value cannot
be determined, the tax market value, averaged over a period of five years, can be used as a
substitute. The maximum amount that may be reimbursed under the fund is $8,000 for a
single-section and $14,500 for a multisection manufactured home. The minimum amount
that may be reimbursed under the fund is $2,000 for a single section and $4,000 for a
multisection manufactured home. The manufactured home owner shall deliver to the
manufactured home park owner the current certificate of title to the manufactured home
duly endorsed by the owner of record, and valid releases of all liens shown on the certificate
of title, and a statement from the county where the manufactured home is located evidencing
that the personal property taxes have been paid. The manufactured home owner's application
for funds under this paragraph must include a document certifying that the manufactured
home cannot be relocated, that the lot rental is current, that the annual $15 payments to the
Minnesota manufactured home relocation trust fund have been paid when due, that the
manufactured home owner has chosen to tender title under this section, and that the park
owner agrees to make a payment to the deleted text begin commissioner of management and budgetdeleted text end new text begin Minnesota
Housing Finance Agency
new text end in the amount established in subdivision 12, paragraph (a), less
any documented costs submitted to the neutral third party, required for demolition and
removal of the home, and any debris or refuse left on the lot, not to exceed $1,500. The
manufactured home owner must also provide a copy of the certificate of title endorsed by
the owner of record, and certify to the neutral third party, with a copy to the park owner,
that none of the exceptions to receipt of compensation under subdivision 12, paragraph (b),
clauses (1) to (6), apply to the manufactured home owner, and that the home owner will
vacate the home within 60 days after receipt of payment or the date of park closure,
whichever is earlier, provided that the monthly lot rent is kept current.

(f) Notwithstanding paragraph (a), the manufactured home owner's compensation for
relocation costs from the fund under section 462A.35, is the greater of the amount provided
under this subdivision, or the amount under the local ordinance in effect on May 26, 2007,
that is applicable to the manufactured home owner. Nothing in this paragraph is intended
to increase the liability of the park owner.

(g) Neither the neutral third party nor the Minnesota Housing Finance Agency shall be
liable to any person for recovery if the funds in the Minnesota manufactured home relocation
trust fund are insufficient to pay the amounts claimed. The Minnesota Housing Finance
Agency shall keep a record of the time and date of its approval of payment to a claimant.

(h)(1) By October 15, 2019, the Minnesota Housing Finance Agency shall post on its
website and report to the chairs of the senate Finance Committee and house of representatives
Ways and Means Committee on the Minnesota manufactured home relocation trust fund,
including the account balance, payments to claimants, the amount of any advances to the
fund, the amount of any insufficiencies encountered during the previous calendar year, and
any itemized administrative charges or expenses deducted from the trust fund balance. If
sufficient funds become available, the Minnesota Housing Finance Agency shall pay the
manufactured home owner whose unpaid claim is the earliest by time and date of approval.

(2) Beginning in 2019, the Minnesota Housing Finance Agency shall post on its website
and report to the chairs of the senate Finance Committee and house of representatives Ways
and Means Committee by October 15 of each year on the Minnesota manufactured home
relocation trust fund, including the aggregate account balance, the aggregate assessment
payments received, summary information regarding each closed park including the total
payments to claimants and payments received from each closed park, the amount of any
advances to the fund, the amount of any insufficiencies encountered during the previous
fiscal year, reports of neutral third parties provided pursuant to subdivision 4, and any
itemized administrative charges or expenses deducted from the trust fund balance, all of
which should be reconciled to the previous year's trust fund balance. If sufficient funds
become available, the Minnesota Housing Finance Agency shall pay the manufactured home
owner whose unpaid claim is the earliest by time and date of approval.

new text begin EFFECTIVE DATE.new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 4.

Minnesota Statutes 2022, section 327C.095, subdivision 16, is amended to read:


Subd. 16.

Reporting of licensed manufactured home parks.

The Department of Health
or, if applicable, local units of government that have entered into a delegation of authority
agreement with the Department of Health as provided in section 145A.07 shall provide, by
March 31 of each year, a list of names and addresses of the manufactured home parks
licensed in the previous year, and for each manufactured home park, the current licensed
owner, the owner's address, the number of licensed manufactured home lots, and other data
as they may request for the deleted text begin Department of Management and Budgetdeleted text end new text begin Minnesota Housing
Finance Agency
new text end to invoice each licensed manufactured home park in Minnesota.

new text begin EFFECTIVE DATE.new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 5.

Minnesota Statutes 2022, section 327C.096, is amended to read:


327C.096 NOTICE OF SALE.

When a park owner offers to sell a manufactured home park to the public through
advertising in a newspaper or by listing the park with a real estate broker licensed by the
Department of Commerce, the owner must provide concurrent written notice to deleted text begin a residentdeleted text end
deleted text begin of each manufactured homedeleted text end new text begin each resident householdnew text end in the park that the park is being offered
for sale. Written notice provided once within a one-year period satisfies the requirement
under this section. The notice provided by the park owner to deleted text begin a resident of each manufactured
home
deleted text end new text begin each resident householdnew text end does not grant any property rights in the park and is for
informational purposes only. This section does not apply in the case of a taking by eminent
domain, a transfer by a corporation to an affiliate, a transfer by a partnership to one or more
of its partners, or a sale or transfer to a person who would be an heir of the owner if the
owner were to die intestate. deleted text begin If at any time a manufactured home park owner receives an
unsolicited bona fide offer to purchase the park that the owner intends to consider or make
a counter offer to, the owner is under no obligation to notify the residents as required under
this section.
deleted text end

Sec. 6.

new text begin [327C.097] NOTICE OF UNSOLICITED SALE.
new text end

new text begin Subdivision 1.new text end

new text begin Definitions.new text end

new text begin For the purposes of this section, "nonprofit" means a nonprofit
organization under chapter 317A.
new text end

new text begin Subd. 2.new text end

new text begin Scope.new text end

new text begin This section does not apply to:
new text end

new text begin (1) a purchase of a manufactured home park by a nonprofit or a representative acting
on behalf of residents pursuant to a bona fide offer to purchase the park pursuant to
subdivision 5;
new text end

new text begin (2) a purchase of a manufactured home park by a governmental entity under its powers
or threat of eminent domain;
new text end

new text begin (3) a transfer by a corporation or limited liability company to an affiliate, including any
shareholder or member of the transferring corporation; any corporation or entity owned or
controlled, directly or indirectly, by the transferring corporation; or any other corporation
or entity owned or controlled, directly or indirectly, by any shareholder or member of the
transferring corporation;
new text end

new text begin (4) a transfer by a partnership to any of its partners;
new text end

new text begin (5) a sale or transfer between or among joint tenants or tenants in common owning a
manufactured home park;
new text end

new text begin (6) an exchange of a manufactured home park for other real property, whether or not
such exchange also invoices the payment of cash or boot;
new text end

new text begin (7) a conveyance of an interest in a manufactured home park incidental to the financing
of the manufactured home park;
new text end

new text begin (8) a conveyance resulting from the foreclosure of a mortgage, cancellation of a contract
for deed, or other instrument encumbering a manufactured home park or any deed given in
lieu of such foreclosure or cancellation;
new text end

new text begin (9) a sale or transfer to a person who would be included within the intestate table of
descent and distribution of the park owner; or
new text end

new text begin (10) a park owner who, within the past year, has provided written notice pursuant to
section 327C.096.
new text end

new text begin Subd. 3.new text end

new text begin Notice of offer.new text end

new text begin (a) If a park owner receives an unsolicited bona fide offer to
purchase the park that the park owner intends to consider or make a counteroffer to, the
park owner's only obligation shall be to mail a notice to the Minnesota Housing Finance
Agency, by certified mail, and to each park resident household, by regular mail. The notice
must indicate that the park owner has received an offer that it is considering, and it must
disclose the price range and material terms and conditions upon which the park owner would
consider selling the park and consider any offer made by a representative acting on behalf
of residents or a nonprofit that will become a representative acting on behalf of residents,
as provided below. The park owner shall be under no obligation either to sell to the nonprofit
or representative acting on behalf of residents or to interrupt or delay other negotiations and
shall be free to execute a purchase agreement or contract for the sale of the park to a party
or parties other than the representative acting on behalf of residents. Substantial compliance
with the notice requirement in this paragraph shall be deemed sufficient.
new text end

new text begin (b) The Minnesota Housing Finance Agency must, within five days of receipt of the
notice required under paragraph (a), distribute a copy of the notice to any representative
acting on behalf of residents and to any nonprofits that register with the agency to receive
such notices. The agency shall make a list of any representatives acting on behalf of residents
and any registered nonprofits publicly available on its website.
new text end

new text begin Subd. 4.new text end

new text begin Unsolicited offer.new text end

new text begin Nothing contained in this section or section 327C.096 shall
prevent a representative acting on behalf of residents or a nonprofit from making an
unsolicited bona fide offer to purchase the manufactured home park to the park owner at
any time.
new text end

Sec. 7.

Minnesota Statutes 2022, section 462.357, subdivision 1, is amended to read:


Subdivision 1.

Authority for zoning.

For the purpose of promoting the public health,
safety, morals, and general welfare, a municipality may by ordinance regulate on the earth's
surface, in the air space above the surface, and in subsurface areas, the location, height,
width, bulk, type of foundation, number of stories, size of buildings and other structures,
the percentage of lot which may be occupied, the size of yards and other open spaces, the
density and distribution of population, the uses of buildings and structures for trade, industry,
residence, recreation, public activities, or other purposes, and the uses of land for trade,
industry, residence, recreation, agriculture, forestry, soil conservation, water supply
conservation, conservation of shorelands, as defined in sections 103F.201 to 103F.221,
access to direct sunlight for solar energy systems as defined in section 216C.06, flood control
or other purposes, and may establish standards and procedures regulating such uses. To
accomplish these purposes, official controls may include provision for purchase of
development rights by the governing body in the form of conservation easements under
chapter 84C in areas where the governing body considers preservation desirable and the
transfer of development rights from those areas to areas the governing body considers more
appropriate for development. No regulation may prohibit earth sheltered construction as
defined in section 216C.06, subdivision 14, relocated residential buildings, deleted text begin ordeleted text end manufactured
homes built in conformance with sections 327.31 to 327.35new text begin , or industrialized or modular
buildings for residential use built in conformance with Minnesota Rules, chapter 1361,
new text end that
comply with all other zoning ordinances promulgated pursuant to this section. The regulations
may divide the surface, above surface, and subsurface areas of the municipality into districts
or zones of suitable numbers, shape, and area. The regulations shall be uniform for each
class or kind of buildings, structures, or land and for each class or kind of use throughout
such district, but the regulations in one district may differ from those in other districts. The
ordinance embodying these regulations shall be known as the zoning ordinance and shall
consist of text and maps. A city may by ordinance extend the application of its zoning
regulations to unincorporated territory located within two miles of its limits in any direction,
but not in a county or town which has adopted zoning regulations; provided that where two
or more noncontiguous municipalities have boundaries less than four miles apart, each is
authorized to control the zoning of land on its side of a line equidistant between the two
noncontiguous municipalities unless a town or county in the affected area has adopted
zoning regulations. Any city may thereafter enforce such regulations in the area to the same
extent as if such property were situated within its corporate limits, until the county or town
board adopts a comprehensive zoning regulation which includes the area.

Sec. 8.

Minnesota Statutes 2022, section 469.002, subdivision 12, is amended to read:


Subd. 12.

Project.

"Project" means a housing project, a housing development projectnew text begin ,
a workforce housing project,
new text end or a redevelopment project, or any combination of those
projects. The term "project" also may be applied to all real and personal property, assets,
cash, or other funds, held or used in connection with the development or operation of the
project. The term "project" also includes an interest reduction program authorized by section
469.012, subdivision 7.

Sec. 9.

Minnesota Statutes 2022, section 469.002, is amended by adding a subdivision to
read:


new text begin Subd. 25.new text end

new text begin Workforce housing project.new text end

new text begin (a) "Workforce housing project" means any
work or undertaking by an authority located in an eligible project area to develop market
rate residential rental properties, as defined in section 462A.39, subdivision 2, paragraph
(d), or single-family housing, as defined under section 462C.02, subdivision 4.
new text end

new text begin (b) For the purposes of this paragraph, "eligible project area" means an area that meets
the criteria under section 462A.39, subdivisions 2, paragraph (b), and 4, paragraph (a).
new text end

Sec. 10.

Minnesota Statutes 2022, section 500.20, subdivision 2a, is amended to read:


Subd. 2a.

Restriction of duration of condition.

Except for any right to reenter or to
repossess as provided in subdivision 3, all private covenants, conditions, or restrictions
created by which the title or use of real property is affected, cease to be valid and operative
30 years after the date of the deed, or other instrument, or the date of the probate of the will,
creating them, and may be disregarded.

This subdivision does not apply to covenants, conditions, or restrictions:

(1) that were created before August 1, 1959, under which a person who owns or has an
interest in real property against which the covenants, conditions, or restrictions have been
filed claims a benefit of the covenant, condition, or restriction if the person records in the
office of the county recorder or files in the office of the registrar of titles in the county in
which the real estate affected is located, on or before March 30, 1989, a notice sworn to by
the claimant or the claimant's agent or attorney: setting forth the name of the claimant;
describing the real estate affected; describing the deed, instrument, or will creating the
covenant, condition, or restriction; and stating that the covenant, condition, or restriction is
not nominal and may not be disregarded under subdivision 1;

(2) that are created by the declaration, bylaws, floor plans, or condominium plat of a
condominium created before August 1, 1980, under chapter 515, or created on or after
August 1, 1980, under chapter 515A or 515B, or by any amendments of the declaration,
bylaws, floor plans, or condominium plat;

(3) that are created by the articles of incorporation, bylaws, or proprietary leases of a
cooperative association formed under chapter 308A;

(4) that are created by a declaration or other instrument that authorizes and empowers
a corporation of which the qualification for being a stockholder or member is ownership of
certain parcels of real estate, to hold title to common real estate for the benefit of the parcels;

(5) that are created by a deed, declaration, reservation, or other instrument by which one
or more portions of a building, set of connecting or adjacent buildings, or complex or project
of related buildings and structures share support, structural components, ingress and egress,
or utility access with another portion or portions;

(6) that were created after July 31, 1959, under which a person who owns or has an
interest in real estate against which covenants, conditions, or restrictions have been filed
claims a benefit of the covenants, conditions, or restrictions if the person records in the
office of the county recorder or files in the office of the registrar of titles in the county in
which the real estate affected is located during the period commencing on the 28th
anniversary of the date of the deed or instrument, or the date of the probate of the will,
creating them and ending on the 30th anniversary, a notice as described in clause (1); deleted text begin or
deleted text end

(7) that are created by a declaration or bylaws of a common interest community created
under or governed by chapter 515B, or by any amendments theretodeleted text begin .deleted text end new text begin ; or
new text end

new text begin (8) that are created by a declaration or other instrument required by a government entity
related to affordable housing.
new text end

A notice filed in accordance with clause (1) or (6) delays application of this subdivision
to the covenants, conditions, or restrictions for a period ending on the later of seven years
after the date of filing of the notice, or until final judgment is entered in an action to determine
the validity of the covenants, conditions, or restrictions, provided in the case of an action
the summons and complaint must be served and a notice of lis pendens must be recorded
in the office of the county recorder or filed in the office of the registrar of titles in each
county in which the real estate affected is located within seven years after the date of
recording or filing of the notice under clause (1) or (6).

County recorders and registrars of titles shall accept for recording or filing a notice
conforming with this subdivision and charge a fee corresponding with the fee charged for
filing a notice of lis pendens of similar length. The notice may be discharged in the same
manner as a notice of lis pendens and when discharged, together with the information
included with it, ceases to constitute either actual or constructive notice.

Sec. 11.

Laws 2023, chapter 20, section 1, is amended to read:


Section 1. APPROPRIATION.

(a) $50,000,000 in fiscal year 2023 is appropriated from the general fund to the Housing
Finance Agency for transfer to the housing development fund for the family homeless
prevention and assistance program under Minnesota Statutes, section 462A.204. This
appropriation is onetime. Notwithstanding procurement provisions outlined in Minnesota
Statutes, section 16C.06, subdivisions 1, 2, and 6, the agency may award grants to existing
program grantees. The agency shall make best efforts to spend the appropriation by June
30, 2024.

(b) Notwithstanding Minnesota Statutes, section 462A.204, subdivision 5, qualified
families may receive more than 24 months of rental assistance.

(c) By January 15, 2024, and 60 days after the appropriation in paragraph (a) has been
expended, the commissioner shall report to the chairs and ranking minority members of the
legislative committees of housing finance the following:

(1) the number of applicants and the total amount receiving rental assistance under this
section;

(2) the geographic distribution of the rental assistance; and

(3) for the January 15, 2024, report, the remaining balance of the appropriation in this
section.

new text begin (d) If the agency determines that the metropolitan area is in need of additional support
to serve households that are homeless or at risk of homelessness, the agency may grant
funds to entities other than counties in the metropolitan area, including but not limited to
nonprofit organizations.
new text end

new text begin (e) In circumstances where more than one grantee operates in a given geographic area,
grantees may work with either an advisory committee as required under Minnesota Statutes,
section 462A.204, subdivision 6, or the local Continuum of Care and are not required to
meet the requirements of Minnesota Statutes, section 462A.204, subdivision 4.
new text end

Sec. 12.

new text begin TRANSITION OF RESPONSIBILITIES TO THE MINNESOTA HOUSING
FINANCE AGENCY.
new text end

new text begin A payment submitted to the commissioner of management and budget on or before July
1, 2025, for deposit into the housing trust fund account created under Minnesota Statutes,
section 462A.201, or into the Minnesota manufactured home relocation trust fund established
under Minnesota Statutes, section 462A.35, must be deposited by the commissioner of
management and budget in the housing trust fund account created under Minnesota Statutes,
section 462A.201, or in the Minnesota manufactured home relocation trust fund. The
commissioner of management and budget must notify the person who submitted the payment
to the commissioner of management and budget that the payment was received, documented,
and has been or will be deposited into the trust fund; that future payments must be submitted
to the Minnesota Housing Finance Agency rather than the commissioner of management
and budget; and that payments submitted to the commissioner of management and budget
after July 1, 2025, will not be accepted.
new text end

new text begin EFFECTIVE DATE.new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 13. new text begin REQUIRING CITIES TO REPORT BUILDINGS THAT DO NOT HAVE
SPRINKLER SYSTEMS.
new text end

new text begin (a) A city of the first or second class shall provide to the state fire marshal a list by June
20, 2024, and an updated list by June 30, 2027, and June 30, 2032, of each residential
building in the city that:
new text end

new text begin (1) has at least one story used for human occupancy that is 75 feet or more above the
lowest level of fire department vehicle access;
new text end

new text begin (2) was not subject to a requirement to include a sprinkler system at the time the building
was constructed; and
new text end

new text begin (3) has not been retrofitted with a sprinkler system.
new text end

new text begin (b) The state fire marshal shall submit the lists within 60 days of the due dates under
paragraph (a) to the chairs and ranking minority members of the legislative committees with
jurisdiction over the State Building Code, State Fire Code, and Minnesota Housing Finance
Agency.
new text end

Sec. 14. new text begin WORKGROUP ON EXPEDITING RENTAL ASSISTANCE.
new text end

new text begin Subdivision 1.new text end

new text begin Creation; duties.new text end

new text begin A workgroup is created to study how to expedite both
the processing of applications for rental assistance and for emergency rental assistance and
the distribution of rental assistance funds to landlords, in order to identify what processes,
procedures, and technological or personnel resources would be necessary to enable the state
or county agencies responsible for administering government rental assistance funds,
including the family homelessness prevention and assistance program, the emergency
assistance program, and emergency general assistance, to meet the following goals:
new text end

new text begin (1) within two weeks of receiving a completed application for rental assistance, make
and issue a determination on the application; and
new text end

new text begin (2) within 30 days of receiving a completed application for rental assistance, issue
payment on an approved rental application to the landlord.
new text end

new text begin Subd. 2.new text end

new text begin Membership.new text end

new text begin The workgroup shall consist of the following:
new text end

new text begin (1) the commissioner of the Minnesota Housing Finance Agency or a designee;
new text end

new text begin (2) the commissioner of the Department of Human Services or designee;
new text end

new text begin (3) a representative from the Minnesota Multi Housing Association;
new text end

new text begin (4) a representative from Mid-Minnesota Legal Aid;
new text end

new text begin (5) a representative from HOME Line;
new text end

new text begin (6) a representative from the United Way;
new text end

new text begin (7) a representative from the Salvation Army;
new text end

new text begin (8) a representative from the Community Action Partnership;
new text end

new text begin (9) a representative from Community Mediation Minnesota;
new text end

new text begin (10) a representative from the Family Housing Fund;
new text end

new text begin (11) four county administrators of emergency rental assistance, including two county
administrators who work for metropolitan counties, as defined by Minnesota Statutes, section
473.121, subdivision 4, and two county administrators who work for nonmetropolitan
counties, with one member from each category appointed by the speaker of the house of
representatives and one from each category appointed by the senate majority leader;
new text end

new text begin (12) one member from the house of representatives appointed by the speaker of the
house; and
new text end

new text begin (13) one member from the senate appointed by the senate majority leader.
new text end

new text begin Subd. 3.new text end

new text begin Facilitation; organization; meetings.new text end

new text begin (a) The Management Analysis Division
of Minnesota Management and Budget shall facilitate the workgroup and convene the first
meeting by July 15, 2023.
new text end

new text begin (b) The workgroup must meet at regular intervals as often as necessary to accomplish
the goals enumerated under subdivision 1.
new text end

new text begin (c) Meetings of the workgroup are subject to the Minnesota Open Meeting Law under
Minnesota Statutes, chapter 13D.
new text end

new text begin Subd. 4.new text end

new text begin External consultation.new text end

new text begin The workgroup shall consult with other individuals
and organizations that have expertise and experience that may assist the workgroup in
fulfilling its responsibilities, including entities engaging in additional external stakeholder
input from those with lived experience and administrators of emergency assistance not
named to the workgroup, including Minnesota's Tribal nations.
new text end

new text begin Subd. 5.new text end

new text begin Report required.new text end

new text begin The workgroup shall submit a final report by February 1,
2024, to the chairs and ranking minority members of the legislative committees with
jurisdiction over housing finance and policy. The report shall include draft legislation
required to implement the proposed legislation.
new text end

new text begin Subd. 6.new text end

new text begin Expiration.new text end

new text begin The workgroup expires upon submission of the final report in
subdivision 5, or February 28, 2024, whichever is later.
new text end

new text begin EFFECTIVE DATE.new text end

new text begin This section is effective the day following final enactment and
expires March 1, 2024.
new text end "

Delete the title and insert:

"A bill for an act
relating to state government; establishing budget for Minnesota Housing Finance
Agency; making policy, finance, and technical changes to housing provisions;
expanding and establishing certain homeownership, manufactured home, and rent
assistance programs; expanding requirements and uses of housing infrastructure
bonds; establishing metropolitan region sales tax; establishing local affordable
housing aid; requiring reports; appropriating money; amending Minnesota Statutes
2022, sections 82.75, subdivision 8; 297A.99, subdivision 1; 327C.095, subdivisions
12, 13, 16; 327C.096; 462.357, subdivision 1; 462A.05, subdivision 14, by adding
subdivisions; 462A.07, by adding a subdivision; 462A.2035, subdivision 1b;
462A.204, subdivision 3; 462A.21, subdivision 3b; 462A.22, subdivision 1;
462A.33, subdivision 2, by adding a subdivision; 462A.36, subdivision 4, by
adding a subdivision; 462A.37, subdivisions 1, 2, 4, 5, by adding a subdivision;
462A.38, subdivision 1; 462A.39, subdivisions 2, 5; 469.002, subdivision 12, by
adding a subdivision; 500.20, subdivision 2a; Laws 2021, First Special Session
chapter 8, article 1, section 3, subdivision 11; Laws 2023, chapter 20, section 1;
proposing coding for new law in Minnesota Statutes, chapters 297A; 327C; 462A;
477A."

We request the adoption of this report and repassage of the bill.
House Conferees:
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.
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Michael Howard
Esther Agbaje
.
Brian Johnson
Senate Conferees:
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Lindsey Port
Zaynab Mohamed
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Karin Housley