This bill establishes a new requirement for landlords with more than ten residential rental units to offer tenants the option to have their on-time rent payments reported to credit bureaus, which can positively impact their credit scores. Participation in this rent reporting program is voluntary for tenants, who cannot be charged for the service and can opt out at any time. The bill also includes provisions for the Minnesota Housing Finance Agency to provide grants to landlords to help cover the costs associated with implementing this credit reporting requirement.

To support this initiative, the bill appropriates $500,000 for each of the fiscal years 2026 and 2027 from the general fund for grants aimed at assisting landlords with the costs of credit reporting. Priority for these grants will be given to landlords with tenants earning at or below 50 percent of the area median income. Additionally, the Minnesota Housing Finance Agency is tasked with collecting data on the effectiveness of the rent reporting program and must submit a report to legislative committees by March 1, 2027.