The bill establishes a "Locally Controlled Housing Fund" within the housing development fund in Minnesota, aimed at assisting eligible recipients such as cities, counties, and Tribal authorities in acquiring, rehabilitating, demolishing, or constructing housing. The fund will support various financing options, including construction financing and refinancing, to enhance the locally controlled housing stock. It defines key terms such as "approved partner," "eligible household," and "locally controlled housing," and outlines the requirements for eligible recipients, including the management of housing and the reinvestment of proceeds to further affordable housing goals.

Additionally, the bill mandates the agency to create a revolving loan fund for financing locally controlled housing projects, ensuring that a significant portion of the units are affordable for low-income households. It includes stipulations for the sale of such housing, requiring a 50-year holding period before any sale unless approved by the agency. The bill also requires the commissioner to submit annual reports detailing funded projects and their purposes, and it appropriates $500 million from the general fund for the creation and administration of the housing fund in fiscal year 2024.