The bill establishes a First-Generation Homebuyers Down Payment Assistance Fund, which will be administered by the Midwest Minnesota Community Development Corporation (MMCDC). An appropriation of $176,000,000 from the general fund is allocated for this purpose, with the funds available until June 30, 2026. The fund aims to provide targeted assistance to eligible first-generation homebuyers, defined as individuals who meet specific income and homeownership criteria, including those who have never owned a home or lost one due to foreclosure. Eligible homebuyers must also complete an approved homebuyer education course and occupy the purchased home as their primary residence.

Assistance from the fund is capped at ten percent of the home purchase price, not exceeding $32,000 per eligible buyer, and is structured as a forgivable loan. The bill outlines the conditions under which the loan may be repaid, including scenarios of non-owner occupancy or foreclosure. Additionally, the fund will be subject to audits by the legislative auditor, and MMCDC is required to report annually to the legislature on various metrics related to the loans issued. The bill is set to take effect on July 1, 2023.