This bill appropriates $5,000,000 from the general fund for fiscal year 2026 to the Minnesota Housing Finance Agency. The funds will be granted to the Center for African Immigrants and Refugees Organization (CAIRO) to support the construction of 70 workforce housing units in the Iskufilan Village development in St. Cloud, Minnesota.

The project aims to provide safe, modern, and affordable housing for low-income and middle-income frontline workers. At least 10% of the units must be designated as affordable housing, meaning they must be available to households earning at or below 60% of the area median income (AMI), as defined by the U.S. Department of Housing and Urban Development (HUD). The remaining units are designated for middle-income households earning between 60% and 120% of the AMI.

CAIRO will oversee project planning, construction, and housing allocation while ensuring compliance with state and local workforce housing requirements. The organization must prioritize energy-efficient, family-friendly design, including two, three, and four-bedroom units suited for workforce families.

The Minnesota Housing Finance Agency is responsible for overseeing the funding and ensuring compliance with workforce housing affordability guidelines. CAIRO must report to the agency once the housing reaches a 90% occupancy level to confirm compliance with housing requirements.

This is a one-time appropriation, and any funds encumbered by contract by June 30, 2025, will remain available until June 30, 2027.