This bill modifies certain expenditure provisions of the Housing Development Fund and repeals specific allowed expenditures for the Minnesota Housing Finance Agency (MHFA).

Key Changes:

1. Amendments to Existing Statutes:

   • Section 462A.20, Subd. 2: Specifies which money goes into the Housing Development Fund, including appropriations, repayments, fees, and interest income.
   • Section 462A.20, Subd. 3: Requires separate bookkeeping for state-appropriated funds, allows aggregation of investment earnings, and permits the transfer of unencumbered balances between accounts under certain conditions.
   • Section 462A.21, Subd. 10: Ensures certain appropriations remain available until fully expended and allows investment earnings to be used for the original appropriation's purpose.
   • Section 462A.21, Subd. 12a: Allows unencumbered balances from various loan or grant programs to be transferred between eligible programs.

2. Repealed Provisions:

   • Capacity Building Grants (Subd. 3b): Eliminates grants to nonprofits, local governments, and tribal organizations for expanding affordable housing capacity.
   • Other Agency Purposes (Subd. 5): Removes the agency’s discretionary ability to allocate funds for purposes not explicitly appropriated.
   • Rental Housing (Subd. 23): Eliminates funding for rental housing programs under section 462A.2097.
   • Full Cycle Homeownership Services (Subd. 26): Removes funding for homeownership support programs under section 462A.209.

Overall Impact:

• Limits the Minnesota Housing Finance Agency’s (MHFA) ability to allocate and transfer certain funds.
• Restricts funding for rental housing, homeownership support, and nonprofit housing capacity-building programs.
• Prioritizes preserving existing appropriated funds and their intended uses while reducing flexibility in spending.

This bill would effectively narrow the scope of how MHFA can allocate its funds, potentially impacting housing support programs and nonprofit involvement.