This bill modifies the community-based first-generation homebuyers assistance program in Minnesota by amending existing laws to enhance the program's structure and funding. It designates the Midwest Minnesota Community Development Corporation (MMCDC) as the administrator of the program, which provides down payment assistance to eligible homebuyers. The bill specifies that the funds appropriated for this program will be available for a three-year period, with any unused funds to be remitted to the Minnesota Housing Finance Agency. Notably, the bill removes the previous requirement for recaptured funds to be returned to the agency after the three-year period and instead allows MMCDC to retain these funds for future assistance.

Additionally, the bill introduces new provisions regarding the maximum assistance amount, which may increase to ten percent of the median home sales price starting in fiscal year 2027. It also outlines that the assistance will be provided as a no-interest forgivable loan, with specific conditions for forgiveness and recapture in cases of hardship. The bill appropriates $25 million for fiscal year 2026 and $50 million for fiscal year 2027 to support the program, ensuring that funds are utilized effectively to promote homeownership among first-generation buyers in Minnesota.