This bill amends Minnesota Statutes to enhance statewide local housing aid by expanding the eligible uses of such aid and modifying the deadlines for spending it on qualifying projects. Key amendments include the addition of new qualifying projects such as emergency rental assistance for low-income households, financial support for nonprofit affordable housing providers, and the development of market-rate residential rental properties outside metropolitan counties. The bill also modifies the language regarding the costs associated with facility construction and operations, replacing the previous language about operating costs. Additionally, it emphasizes the importance of prioritizing affordable housing for households with incomes below certain thresholds.

Furthermore, the bill introduces new deadlines for aid recipients to commit and spend funds on qualifying projects, particularly for affordable housing construction and emergency shelter facilities. It establishes a requirement for annual reporting to the Minnesota Housing Finance Agency, detailing the use of funds and the status of projects. The bill also outlines consequences for recipients who fail to comply with spending deadlines or reporting requirements, including the potential for repayment of funds. The effective date for these changes is set for aids payable in calendar year 2027 and thereafter.

Statutes affected:
Introduction: 477A.36