Purpose of the Bill

The bill aims to improve the landscape of affordable housing in Minnesota by establishing reporting requirements, capping compliance periods for certain tax credit commitments, and developing strategies for the stabilization and recapitalization of affordable rental housing.

Main Provisions

• Annual Reporting: The commissioner of the Minnesota Housing Finance Agency must submit an annual report by February 15 to legislative committees detailing the total number of funding applications, the amounts requested and awarded, and specifics about housing units affected by these funds.
• Financial Stability Report: By January 5 each year, a report on the financial stability of the affordable housing industry, including metrics like operating expenses versus revenue and rent collection rates, must be provided.
• Local Affordable Housing Aid Meetings: The commissioner must convene annual meetings with the Interagency Council to End Homelessness and local governments to discuss regional needs and potential collaborations in addressing homelessness and housing supply issues.
• Commitment Period Limitation: The bill restricts the commissioner from requiring commitment terms longer than the federally mandated compliance period under Section 42 of the Internal Revenue Code.
• Policy Framework Development: The commissioner is tasked with creating a policy framework aimed at stabilizing affordable rental housing, improving regulatory processes, and exploring funding solutions. A report on these efforts is due by January 5, 2026.
• Interagency Stabilization Group: Regular meetings with stakeholders are authorized to seek funding solutions for the preservation and stabilization of affordable housing properties.
• Funding Transfer and Appropriation: The bill authorizes the transfer of funds from the general fund to the housing development fund across several fiscal years and appropriates funds for the development of policies to stabilize rental housing.

Significant Changes to Existing Law

• Amendment and Addition to Statutes: The bill amends existing Minnesota Statutes, section 462A.07, by adding new subdivisions that outline the detailed reporting requirements and meetings.
• Establishment of Compliance Period Cap: Adds a restriction on commitment lengths aligning with federal regulations to prevent longer terms than necessary for low-income housing tax credit programs.

Relevant Terms

• Affordable housing
• Financial stability
• Housing policy
• Regulatory relief
• Rental housing stabilization
• Housing development fund
• Compliance period
• Tax credit commitments