Purpose of the Bill

The proposed legislation aims to create the African American Workforce and Affordable Homeownership Development Program in Minnesota. This program is designed to increase the availability of affordable housing for African Americans and promote workforce development specifically among African American communities.

Main Provisions

• Program Establishment: The bill establishes a program that grants funds to support the development of affordable housing projects. These grants can be utilized by cities, Tribal governments, nonprofit organizations, cooperatives, and community land trusts.

• Use of Funds:

  • Grant funds are to be used for various purposes, such as land acquisition, environmental cleanup, design, rehabilitation, construction training, job placement activities, and the development of affordable single-family housing.
  • Specifically, funds should target African American affordable homeownership by supporting:
  • African American-run business development.
  • Job training and job placement programs operated by African Americans.
  • Enhancing the capacity of African American housing organizations.

• Eligibility: Projects funded by the grants must serve African American households earning 80% or less of the state's median income.

Significant Changes to Existing Law

The bill proposes new coding in Minnesota Statutes, particularly focusing on Chapter 462A, to expedite support and infrastructure development for African American communities, which wasn't previously specified in this manner.

Application Process

• The commissioner of housing finance is responsible for developing the forms and procedures for grant applications, consulting with stakeholders and African Americans recommended by the Council for Minnesotans of African Heritage.
• The bill mandates semiannual deadlines for granting these funds, contingent on available appropriations.

Appropriation

An unspecified amount of money is allocated from the general fund for the fiscal year 2026 to support the program's initiatives.

Relevant Terms

• African American workforce
• Affordable homeownership
• Housing development
• Job training
• Economic empowerment
• Median income