This bill proposes an amendment to the Minnesota Constitution to increase the sales tax rate by three-eighths of one percent, effective from July 1, 2027, until June 30, 2052. The additional revenue generated will be allocated to three dedicated funds: the homeownership opportunity fund, the community and household stability fund, and the rental opportunity fund. Specifically, 25% of the receipts will support homeownership initiatives, another 25% will provide emergency assistance to those at risk of homelessness, and the remaining 50% will fund rental assistance and housing development. The bill also establishes councils to oversee the allocation and use of these funds, ensuring that the dedicated money supplements existing funding sources rather than replacing them.

Additionally, the bill mandates that the proposed constitutional amendment be presented to voters during the 2026 general election. It outlines the creation of the Homeownership Opportunity Council and the Rental Opportunity Council, which will oversee their respective funds aimed at improving housing affordability and quality in Minnesota. Both councils are required to adopt strategic plans, submit biennial reports to the legislature, and recommend appropriations to the governor and legislature. The legislative auditor will conduct audits of fund expenditures to ensure compliance with constitutional and statutory purposes. The councils will consist of diverse members to ensure comprehensive oversight and input on housing initiatives.