This bill, titled H.F. No. 2148, is a Minnesota House of Representatives proposal related to housing. It seeks to establish a Locally Controlled Housing Fund under Minnesota Statutes, Chapter 462A to support the development and management of locally controlled housing.

Key Components of the Bill:

1. Establishment of the Locally Controlled Housing Fund (Section 462A.44)

   • The fund will be a separate account within the housing development fund.
   • It will be used to support acquisition, rehabilitation, demolition, removal, and construction of housing.
   • Financing options include construction financing, permanent financing, interest rate reduction, refinancing, and gap financing.

2. Definitions

   • Eligible Recipients: Cities, counties, tribal governments, community land trusts, and local housing authorities.
   • Approved Partners: Nonprofit organizations or housing cooperatives that meet agency requirements.
   • Eligible Households: Households earning up to 400% of Area Median Income (AMI).
   • Locally Controlled Housing: Properties where eligible recipients hold at least 75% ownership, or where land is owned by the recipient and the building by an approved partner.

3. Requirements for Eligible Recipients

   • Recipients may manage housing directly or contract with approved third parties.
   • Once the awarded funds are repaid, recipients can reinvest proceeds into local affordable housing projects.

4. Fund Allocation and Housing Requirements

   • The agency must allocate funding equally between metropolitan and non-metropolitan areas.
   • Accessibility standards must be followed.
   • Multifamily properties must have at least:
     • 30% of units for households earning ≤ 50% AMI.
     • 30% of units for households earning between 50% and 100% AMI.
   • A housing needs assessment must be submitted with funding applications.

5. Fund Use and Housing Conditions

   • The fund will be structured as a revolving loan fund.
   • Housing must be accessible and inclusive (no segregation by income).
   • Rental unit affordability must be maximized.
   • Single-family homes must be occupied by households at or below 50% AMI.
   • Tenant protections similar to public housing agreements must be included in lease agreements.

6. Restrictions on Sale of Locally Controlled Housing

   • Recipients cannot sell their ownership stake without agency approval.
   • Any outstanding balance from the fund must be repaid upon sale.

7. Administration and Annual Reporting

   • A full-time fund director will be appointed to oversee fund operations and compliance.
   • Annual reports (starting January 15, 2026) must document funded projects and expenditures.

8. Appropriation of Funds

   • An undetermined amount is appropriated from the General Fund for fiscal year 2026 to establish and administer the program.

Summary

The bill establishes a state-managed Locally Controlled Housing Fund to finance and expand affordable housing. It ensures local governments and nonprofit partners retain a majority stake in housing projects, prioritizes affordable housing for lower-income households, and mandates compliance with accessibility and tenant protection standards. The fund is structured as a revolving loan program to promote long-term reinvestment in local housing initiatives.