This bill establishes a "locally controlled housing fund" as a separate account within the housing development fund in Minnesota. The fund is designed to assist eligible recipients, such as cities, counties, and housing cooperatives, in acquiring, rehabilitating, demolishing, or constructing housing. The bill outlines specific definitions, including "eligible household" and "locally controlled housing," and sets requirements for eligible recipients to manage or operate housing projects. It mandates that at least 30% of units in multifamily properties financed through the fund must be affordable to low-income households, and it emphasizes the importance of accessibility and tenant protections in housing agreements.

Additionally, the bill requires the commissioner of the Housing Finance Agency to submit annual reports starting January 15, 2026, detailing the projects funded and their purposes. It also appropriates funds from the general fund for the creation and administration of the locally controlled housing fund. The agency is tasked with ensuring compliance with the established requirements and maximizing the affordability of rental units in the projects funded through this initiative.