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 a locally controlled housing program, including the establishment of two accounts for funding. Eligible recipients, such as 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% of the area median income, while single-family properties must be occupied by households earning no more than 50% of the area median income. The agency is tasked with ensuring a balance of funding between metropolitan and nonmetropolitan areas and providing technical assistance to applicants. A report detailing funded projects will be submitted annually to legislative committees starting January 15, 2026. The bill also includes provisions for the sale and issuance of state bonds to support the program, with appropriations from both the bond proceeds fund and the general fund for fiscal year 2026.

Statutes affected:
Introduction: 462A.37