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 the homeownership opportunity fund, which assists in the creation, purchase, and rehabilitation of homes for owner occupancy. Another 25% will go to the community and household stability fund, providing emergency financial assistance to those at risk of homelessness, while the remaining 50% will support the rental opportunity fund, which focuses on ongoing rental assistance and the development of rental housing.

The bill also establishes councils for each fund to oversee their administration and implementation, including the Community and Household Stability Council and the Homeownership Opportunity Council, which will consist of appointed members from the legislature, housing agencies, and community organizations. These councils are tasked with developing strategic plans, recommending appropriations, and ensuring effective use of the funds to address housing needs 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 the rental opportunity fund. The proposed amendment will be submitted to voters during the 2026 general election, focusing on the benefits of the tax increase for housing initiatives.