This bill establishes a "locally controlled housing fund" within the housing development fund in Minnesota, aimed at assisting eligible recipients such as cities, counties, and housing cooperatives in acquiring, rehabilitating, or constructing housing. The fund will provide financial support for various housing-related activities, including construction financing and refinancing, with a focus on increasing the locally controlled housing stock. The bill outlines specific definitions, eligibility criteria, and requirements for recipients, including the need for a housing needs assessment in funding applications and the stipulation that a certain percentage of units must be affordable to low-income households.

Additionally, the bill mandates the creation of a revolving loan fund to facilitate loans for the acquisition and construction of locally controlled housing, ensuring compliance with accessibility requirements and tenant protections. It also includes provisions for the administration of the fund, requiring the appointment of a dedicated director, and establishes an annual reporting requirement to track the use of funds and the projects financed. An appropriation from the general fund is proposed to support the creation and administration of this housing fund, with specific funding allocated for fiscal year 2026.