This bill establishes a locally controlled housing fund in Minnesota, aimed at enhancing housing accessibility and affordability. It modifies the allowable uses of housing infrastructure bonds, allowing the issuance of up to $30 million in bonds to fund various housing projects, including supportive housing, affordable rental housing, and cooperatively owned housing. The bill introduces a new section in Minnesota Statutes, chapter 462A, which outlines the creation of two accounts for the locally controlled housing program, one in the housing development fund and another in the bond proceeds fund. Eligible recipients, including cities, counties, and federally recognized American Indian Tribes, can apply for grants to develop or acquire housing, with specific requirements for maintaining affordability and tenant protections.

Additionally, the bill mandates that at least 30% of units in multifamily properties funded must be occupied by households earning below 50% and 100% of the area median income, respectively. It also requires a report to be submitted annually starting January 15, 2026, detailing the projects funded under this program. The commissioner of the Housing Finance Agency is authorized to sell and issue state bonds to provide the necessary funding for the program, with appropriations specified for fiscal year 2026. The bill aims to ensure a balanced distribution of housing projects between metropolitan and nonmetropolitan areas while promoting accessibility and affordability for low- and moderate-income households.

Statutes affected:
Introduction: 462A.37