The bill amends Minnesota Statutes 2023 Supplement, section 477A.35, to establish a maintenance of effort condition for local affordable housing aid. It aims to assist metropolitan local governments in developing and preserving affordable housing and supportive services for residents, thereby preventing homelessness. Key amendments include the addition of a new subdivision that requires aid recipients to maintain their locally funded housing expenditures at a level not less than the average of the previous three fiscal years. The bill also clarifies definitions related to cost-burdened households and introduces new qualifying activities for funding, such as financial assistance for residents in arrears and support services for those facing housing instability.

Furthermore, the bill outlines the use of proceeds from the aid, mandating that funds be spent on qualifying projects and establishing deadlines for fund expenditure. It specifies that recipients must report annually on their use of funds and locally funded housing expenditures. The bill also includes provisions for penalties if a city or county fails to meet the maintenance of effort requirement or misuses funds, including the potential for repayment of aid received. Overall, the legislation seeks to enhance accountability and ensure that local governments are actively contributing to affordable housing efforts.