The proposed bill establishes a statewide public infrastructure grant program aimed at supporting housing densification and economic development in Minnesota. Under the new section [116J.4391], the commissioner will provide grants to counties, housing and redevelopment authorities, or cities to cover up to 50% of costs associated with eligible housing projects, which include site preparation and necessary public infrastructure. The grants are intended to enhance workforce and affordable housing, retain or create jobs, and stimulate economic growth. The bill outlines specific criteria for grant applications, including the requirement for local funding commitments and the expectation of substantial public and private investment.

Additionally, the bill specifies that single-family residential dwelling development projects are ineligible for grants. It includes provisions for the cancellation of grants if projects do not progress within five years, requiring the return of awarded funds. The bill also appropriates returned grant money for future grants under this program. Overall, the legislation aims to facilitate the development of housing projects in areas facing shortages of workforce and affordable housing while ensuring accountability and local investment in these initiatives.