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 establishes fund councils to oversee these funds and mandates regular reporting to the legislature.

Furthermore, the bill creates the Community and Household Stability Council and the Homeownership Opportunity Council, which will advise on the implementation of their respective funds. These councils will include a mix of legislative and non-legislative members to ensure diverse representation from various stakeholders, including community organizations and individuals with lived experiences related to housing. The councils are responsible for developing strategic plans, recommending appropriations, and ensuring effective use of funds to address housing needs and disparities in Minnesota. Key provisions include the requirement for strategic plans with measurable outcomes, regular reporting to the legislature, and adherence to prevailing wage requirements for contracts funded by these initiatives. The bill is contingent upon the adoption of a related constitutional amendment and is set to take effect on July 1, 2027.