Purpose of the Bill

The bill aims to modify the existing housing challenge program in Minnesota by expanding the types of educational institutions that can receive challenge grants or loans. This is intended to assist in providing more equitable housing opportunities across the state.

Main Provisions

• Eligibility Expansion: The bill expands the list of eligible recipients for housing challenge grants or loans to include a variety of educational institutions. This includes school districts, cooperative units, charter schools, contract alternative schools, and Tribal contract schools.
• Grant Distribution: The bill specifies that these educational institutions can use the funding to help construct homes, particularly emphasizing owner-occupied homes.
• Homeownership Requirements: If a school uses the grant to build a home for owner occupancy, the future homeowner must participate in a homeownership education, counseling, and training program.

Significant Changes to Existing Law

• Previously, only certain entities were eligible for the housing challenge program. This bill broadens the scope to include various schools and educational organizations, thereby increasing the potential for housing development projects in both metropolitan and nonmetropolitan areas of Minnesota.
• Adds a requirement for homeownership education for future occupants of homes constructed through the program.

Relevant Terms

• Housing challenge program
• Eligible recipients
• School districts
• Charter schools
• Tribal contract schools
• Homeownership education