This bill (S.F. No. 2264) proposes an amendment to Minnesota Statutes, section 477A.013, to require cities receiving local government aid (LGA) to dedicate a portion of that aid to improving pre-1940 housing. The amount allocated would be based on the city's percentage of pre-1940 housing multiplied by its formula aid amount.

The funds must be used for urban renewal projects on pre-1940 homes, including utility and infrastructure updates, as well as improvements to wiring, plumbing, insulation, heating, cooling, or efficiency systems. Cities may distribute the funds either directly for these purposes or as grants or low-interest loans to property owners.

If the calculated allocation amount is less than $100, no funds need to be dedicated. Additionally, the aid allocated under this provision is meant to supplement, not replace, other housing program funding sources such as grants and fees.