The proposed bill establishes a new requirement for private entities seeking funding from the Minnesota Housing Finance Agency by mandating that they obtain a certificate of eligibility for funding. This certificate will be necessary for any monetary awards, grants, loans, or housing tax credits. The bill defines a "private entity" broadly to include various forms of organizations and individuals. To apply for this certificate, entities must provide specific documentation, including proof of registration with the secretary of state, their federal taxpayer identification number, and a list of employees with consent for criminal history checks.

Additionally, the bill stipulates that the certificate of eligibility will expire two years after issuance, after which entities must reapply. The commissioner has the authority to revoke the certificate if it is found that the entity provided false information, was ineligible at the time of issuance, or misused public funds. This legislation aims to enhance accountability and ensure that only eligible entities receive public funding for housing initiatives.