This bill modifies the distribution of local affordable housing aid in Minnesota by amending specific sections of the Minnesota Statutes. Notably, it changes the allocation of proceeds from the metropolitan sales tax. Under the new provisions, 25 percent of the proceeds will be directed to the state rent assistance account, while the previous allocation of 25 percent to the metropolitan city aid account is deleted. Instead, 75 percent of the proceeds will now be allocated to the metropolitan city aid account, increasing the funding available for local affordable housing initiatives.

Additionally, the bill establishes a metropolitan city aid account within the housing assistance fund, which will consist of funds as provided under the amended section 297A.9925 and any other sources. The money in this account is appropriated annually to the commissioner of revenue for payments to cities, as outlined in section 477A.35. This restructuring aims to enhance the support for affordable housing in metropolitan areas by reallocating sales tax proceeds more effectively.

Statutes affected:
Introduction: 297A.9925, 477A.37