This bill modifies the community-based first-generation homebuyers assistance program in Minnesota, specifically amending the 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 removes the designation of the program as a "pilot project" and replaces the term "eligible household" with "eligible homebuyer," clarifying the target demographic. Additionally, it introduces a provision allowing for an increase in the maximum assistance amount based on the median home sales price starting in fiscal year 2027, and specifies that the assistance will be provided as a forgivable loan.

Furthermore, the bill appropriates $25 million for fiscal year 2026 and $50 million for fiscal year 2027 from the general fund to support the program. It outlines that any unused funds at the end of each biennium must be returned to the Minnesota Housing Finance Agency, which will then reallocate those funds for the administration of the workforce and affordable homeownership development program. The bill also mandates annual reporting by MMCDC to the legislature on various metrics related to the program's performance, including loan amounts and demographic data of borrowers.