SF1906

SF1906 (Legislative Session 94 (2025-2026))

Exceptions permission to income limits of the Minnesota housing tax credit contribution account grant and loan program for certain workforce housing projects

Related bill: HF1067

AI Generated Summary

This bill proposes modifications to Minnesota's housing laws regarding workforce housing projects. Specifically, it:

Adjusts Funding Allocation Rules – It amends Minnesota Statutes 462A.39 Subd. 5 to allow funds from the Minnesota housing tax credit account to count toward local matching requirements in workforce housing development programs.
Expands Allowable Uses for Grants and Loans – Under the amended 462A.40 Subd. 2, workforce housing funds can be used for various housing-related activities, including new construction, acquisition, rehabilitation, and financing. Additionally, proposals with regulatory changes that reduce development costs may receive priority.
Defines Eligibility for Housing Grants and Loans – The revised 462A.40 Subd. 3 outlines restrictions on who can receive funding. Specifically:
- Individuals or businesses that contributed to the Minnesota housing tax credit account and received a credit certificate may be disqualified.
- Businesses with certain levels of ownership connections to contributors may also be disqualified.
- Applicants must sign a disclosure affirming they do not fall under these disqualifications.
- Cities, tribes, nonprofit organizations, housing authorities, and private developers may still be eligible.
- Income limits generally apply to fund recipients, except for certain workforce housing projects.

The bill aims to increase funding flexibility for workforce housing while establishing safeguards against conflicts of interest.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 26, 2025	House	Floor	Action	Introduction and first reading
February 26, 2025	Senate	Floor	Action	Introduction and first reading
February 26, 2025	House	Floor	Action	Referred to	Housing and Homelessness Prevention
February 26, 2025	Senate	Floor	Action	Referred to	Housing and Homelessness Prevention

Citations

[
  {
    "analysis": {
      "added": [
        "Clarification on matching funds requirement when projects are funded by contributions to the Minnesota housing tax credit account."
      ],
      "removed": [],
      "summary": "Relates to amendments on allocation limits for rental housing development project funding.",
      "modified": []
    },
    "citation": "462A.39",
    "subdivision": "subdivision 5"
  },
  {
    "analysis": {
      "added": [
        "Preference for grants and loans to proposals with regulatory changes resulting in cost reductions."
      ],
      "removed": [],
      "summary": "Relates to use of funds for workforce housing and multifamily and single-family developments.",
      "modified": []
    },
    "citation": "462A.40",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        "Definitions for disqualified individuals and businesses.",
        "Requirements for disclosure from grant or loan applicants."
      ],
      "removed": [],
      "summary": "Details on eligibility for grant or loan recipients under the workforce housing development program.",
      "modified": []
    },
    "citation": "462A.40",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines cities eligible for grants or loans under the workforce housing development program.",
      "modified": []
    },
    "citation": "462A.03",
    "subdivision": "subdivision 21"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Governs the powers for housing and redevelopment authorities eligible for funding.",
      "modified": []
    },
    "citation": "469.001 to 469.047",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Relates to gap financing as a use of funds for workforce housing development.",
      "modified": []
    },
    "citation": "462A.33",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines income limits for households served by the workforce housing development program.",
      "modified": []
    },
    "citation": "462A.33",
    "subdivision": "subdivision 5"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Provides exceptions to income limits for certain workforce housing developments.",
      "modified": []
    },
    "citation": "462A.39",
    "subdivision": "subdivision 4"
  }
]