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 returned to the 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 eligibility criteria for homebuyers, increasing the maximum assistance amount, and changing the nature of the assistance to a forgivable loan structure. It allows for a maximum assistance of up to ten percent of the median home sales price starting in fiscal year 2027, and the assistance will be forgiven over five years. The bill also mandates that MMCDC report annually to the legislature on various metrics related to the program's performance. Furthermore, it appropriates $25 million for fiscal year 2026 and $50 million for fiscal year 2027 to support the program, with stipulations for remitting any unused funds back to the Minnesota Housing Finance Agency for other housing initiatives.