A bill for an act
relating to state government; proposing an amendment to the Minnesota
Constitution, article XI; increasing the sales tax rate by three-eighths of one percent
and dedicating the receipts for housing purposes; creating a homeownership
opportunity fund, a rental opportunity fund, and a household and community
stability fund; creating fund councils; providing appointments; requiring reports;
proposing coding for new law in Minnesota Statutes, chapters 256K; 462A.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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An amendment to the Minnesota Constitution is proposed to the people. If the amendment
is adopted, a section shall be added to article XI to read:
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Beginning July 1, 2025, until June 30, 2050, the sales and use tax rate shall be
increased by three-eighths of one percent on sales and uses taxable under the general sales
and use tax law. Receipts from the increase, plus penalties and interest and reduced by any
refunds, are dedicated, for the benefit of Minnesotans, to the following funds: 25 percent
to the homeownership opportunity fund, which may be spent to assist in the creation,
purchase, and rehabilitation of homes for owner occupancy; 25 percent to the community
and household stability fund, which may be used to assist in providing emergency financial
assistance, legal services, educational services, and outreach services to persons who are
homeless or at risk of becoming homeless; and 50 percent to the rental opportunity fund,
which may be used to assist in funding ongoing rental assistance and supportive services
for renters and in the acquisition, development, rehabilitation, or adaptive reuse of rental
housing. A homeownership opportunity fund, a community and household stability fund,
and a rental opportunity fund are created in the state treasury. The money dedicated under
this section shall be appropriated by law. The dedicated money under this section must
supplement traditional sources of funding for these purposes and may not be used as a
substitute. The dedicated money under this section may be used to provide matching grants.
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(a) The proposed amendment must be submitted to the people at the 2024 general election.
The question submitted must be:
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"Shall the Minnesota Constitution be amended to remove barriers to homeownership,
to make our rental housing safe and affordable, and to protect our vulnerable households
and communities from displacement and homelessness by increasing the sales and use tax
rate beginning July 1, 2025, by three-eighths of one percent on taxable sales until the year
2050?
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Yes
.
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No
.
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(b) The title required under Minnesota Statutes, section 204D.15, subdivision 1, for the
question submitted to the people under paragraph (a) shall be: "Creation of Homeownership
Opportunity Fund, Community and Household Stability Fund, and Rental Opportunity
Fund."
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The community and household stability fund is established in the
Minnesota Constitution, article XI, section 16. All money earned by the fund must be credited
to the fund.
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Subject to appropriation, receipts in the fund may be spent for:
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(1) emergency assistance for households or individuals that are homeless or at risk of
homelessness or displacement;
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(2) legal services for households or individuals that are homeless or at risk of
homelessness or displacement;
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(3) outreach services for households or individuals that are homeless or at risk of
homelessness or displacement;
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(4) funding the operation of emergency shelters; and
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(5) financing the acquisition, rehabilitation, adaptive reuse, or new construction of
property to serve as emergency shelter, transitional housing, or permanent supportive
housing.
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The legislative auditor shall audit fund expenditures to ensure that the
money is spent for the purposes for which the money was appropriated.
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Contracts for projects funded by this fund must meet the
requirements of contracts for state projects, as established in section 177.43.
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A Community And Household Stability Council is created
to advise on the administration and implementation of the community and household stability
fund under section 256K.50. The Housing Finance Agency shall provide administrative
support for the council. The members of the council shall elect a chair from the voting
members of the council.
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The fund is established to help Minnesotans improve the condition
of homes and communities and prevent homelessness and displacement from homes.
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(a) Three members of the house of representatives,
including two members from the majority party, appointed by the speaker of the house, and
one member from the minority party, appointed by the minority leader, shall serve at the
pleasure of the appointing authority as nonvoting members of the council. Three members
of the senate, including two members from the majority party and one member from the
minority party, appointed according to the rules of the senate, shall serve at the pleasure of
the appointing authority as nonvoting members of the council.
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(b) Twenty-four voting members shall be appointed and must include: