This bill, S.F. No. 1913, proposes the establishment of a Locally Controlled Housing Fund in Minnesota to support housing development by cities, counties, tribal entities, and housing organizations.

Key Provisions:

• Fund Establishment: A separate account in the housing development fund will be created to provide financial assistance for acquiring, rehabilitating, demolishing, or constructing housing.
• Eligible Recipients: Includes cities, counties, federally recognized American Indian Tribes, tribal housing corporations, community land trusts, and local housing authorities.
• Usage of Funds:
  • Construction and permanent financing.
  • Interest rate reduction, refinancing, and gap financing.
  • Assistance in increasing locally controlled housing stock.
  • Loans for acquisition and development of affordable housing.
• Income Qualifications:
  • Eligible households must have incomes up to 400% of area median income (AMI).
  • At least 30% of units in multifamily properties must be occupied by households with income at or below 50% AMI.
  • An additional 30% of units must be for households with income between 50%-100% AMI.
  • Single-family homes must be for households at or below 50% AMI.
• Affordability & Accessibility Requirements:
  • Housing must comply with accessibility codes.
  • Prevents segregation of residents based on rent levels.
• Regulations on Sale: Recipients cannot sell locally controlled housing unless approved by the agency, and any outstanding balance must be repaid.
• Administration: At least one full-time staff member will oversee the program.
• Reporting Requirements: An annual report on fund allocations and project details must be submitted to the legislature starting January 15, 2026.
• Funding: Allocates an unspecified amount of money from the general fund in fiscal year 2026 for the fund’s creation and administration.

Overall Impact:

The bill aims to enhance affordable and accessible housing by empowering local entities with financial tools to develop and manage housing projects, ensuring a mix of income levels and long-term affordability.