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, intended to assist eligible first-generation homebuyers with down payments. The fund will provide assistance up to 10% of the home purchase price, capped at $32,000 per homebuyer, in the form of a forgivable loan. Eligible homebuyers must meet specific criteria, including income limits and prior homeownership status, and must complete a homebuyer education course before purchasing a home.

Additionally, the bill outlines the administration of the fund, which will be available statewide and allows MMCDC to collaborate with other community development financial institutions and nonprofit organizations. The fund is subject to audit by the legislative auditor, and MMCDC is required to report annually to the legislature on various metrics related to the loans issued. The effective date for the implementation of this fund is set for July 1, 2023.