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HF2693 (Legislative Session 94 (2025-2026))

Locally controlled housing fund established, allowable uses of housing infrastructure bonds modified, report required, bonds issued, and money appropriated.

Related bill: SF3503

AI Generated Summary

Purpose of the Bill

The bill aims to enhance affordable housing in Minnesota. It proposes the creation of a locally controlled housing fund, expands the use of housing infrastructure bonds, and requires annual reporting on housing projects. Additionally, it authorizes the sale and issuance of state bonds to support these objectives.

Main Provisions

  • Locally Controlled Housing Program: Establishes a program that allows eligible cities, counties, and tribal entities to develop or acquire housing. The housing must be retained by the entity for at least 50 years.

  • Funding Accounts: Creates two accounts for the program: one in the housing development fund and one in the bond proceeds fund. These accounts will be used to distribute grants or loans for housing projects.

  • Housing Infrastructure Bonds: Authorizes the issuance of up to $30 million in housing infrastructure bonds. These bonds can fund projects such as the construction, acquisition, and rehabilitation of various types of housing, including:

    • Supportive housing for the homeless.
    • Affordable rental and homeownership housing from foreclosed or abandoned properties.
    • Senior housing, and more.

  • Use of Funds: Specifies that funded multifamily properties must cater to certain income groups, ensuring at least 30% of units accommodate low-income families.

  • Grant and Loan Conditions: The bill outlines conditions for funding use, such as maintaining affordability and tenant protections similar to public housing agreements.

  • Accessibility Requirements: For new constructions with more than four units, there are specific requirements for accessibility, including the creation of units with features like roll-in showers and sensory accommodations.

  • Annual Reporting: Requires the submission of an annual report to the legislature on funding allocations and project updates.

Significant Changes to Existing Law

  • Amends existing statutory provisions regarding the issuance and use of housing infrastructure bonds.

  • Expands allowable uses for these bonds to include a broader range of housing projects.

  • Introduces a preference system within housing proposals to prioritize certain groups, notably veterans and low-income families.

Relevant Terms

  • Affordable housing
  • Housing infrastructure bonds
  • Locally controlled housing fund
  • Supportive housing
  • Senior housing
  • Community land trusts
  • Accessibility provisions

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 24, 2025HouseFloorActionIntroduction and first reading, referred toHousing Finance and Policy
April 01, 2025HouseFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Enables financing for new types of housing, including cooperatively owned housing and improved manufactured home parks."
      ],
      "removed": [
        ""
      ],
      "summary": "Modifies the authorization for the issuance of housing infrastructure bonds under section 462A.37.",
      "modified": [
        "Updates conditions and purposes for the issuance and use of housing infrastructure bonds."
      ]
    },
    "citation": "462A.37",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "References section on the improvement and infrastructure of manufactured home parks.",
      "modified": [
        ""
      ]
    },
    "citation": "462A.2035",
    "subdivision": "subdivision 1b"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors