This bill proposes a new law in Minnesota related to tenant credit reporting. Key provisions include:

1. Credit Reporting for Tenants: Landlords with more than ten residential rental units must offer tenants the option of having their on-time rent payments reported to credit bureaus. Participation in this program is voluntary, and tenants cannot be required to take part or be charged for the service. Tenants may opt out at any time, and landlords must remove them from the program within 30 days of the request.

2. Grants for Landlords: The bill appropriates $500,000 for both fiscal years 2026 and 2027 from the general fund to the Minnesota Housing Finance Agency. These funds will be used to provide grants to landlords to cover costs associated with implementing credit reporting, including services, technology, software, and administrative expenses. Priority for grants will be given to landlords with tenants whose income is at or below 50% of the area median income.

3. Data Collection and Reporting: The Minnesota Housing Finance Agency is required to collect data from grant recipients and other willing landlords on participation and effectiveness of the credit reporting requirement. A report summarizing this data must be submitted to the legislature by March 1, 2027.

This bill aims to support tenants in building their credit history while providing financial assistance to landlords to facilitate the process.