Minneslate Logo

SF2976 (Legislative Session 94 (2025-2026))

Allowable uses of funds in the Minnesota housing tax credit contribution account expansion to include funding supportive services in supportive housing

Related bill: HF2901

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to expand the permissible uses of funds in the Minnesota housing tax credit contribution account. It aims to include supportive services in supportive housing as allowable uses for these funds. This tenet is intended to enhance the development and sustainability of supportive housing projects for individuals and families with low to moderate incomes.

Main Provisions

  • Expanded Fund Usage: The bill amends existing laws to allow funds from the Minnesota housing tax credit contribution account to be used specifically for supportive services within supportive housing projects.
  • Fund Allocation: Grants and loans will continue to be available for multifamily and single-family developments, targeting low and moderate-income individuals.
  • Eligible Activities: These funds can be used for various housing-related activities such as gap financing, new construction, acquisition, rehabilitation, demolition of structures, construction and permanent financing, interest rate reduction, and existing supportive housing services.
  • Preference for Cost-Efficient Proposals: The bill allows the agency to prefer proposals that demonstrate cost avoidance or cost reductions, which could include regulatory changes or waivers such as increased housing density, and flexibility in site development or zoning requirements.

Significant Changes to Existing Law

The amendment focuses on expanding the permitted use of funds to include supportive services directly in supportive housing. This is a significant shift, allowing for a more comprehensive approach to housing support that integrates necessary services for residents.

Relevant Terms

  • Housing tax credit
  • Supportive housing
  • Supportive services
  • Low and moderate income
  • Gap financing
  • Regulatory changes
  • Zoning code flexibility

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 23, 2025SenateFloorActionIntroduction and first reading
March 23, 2025SenateFloorActionReferred toHousing and Homelessness Prevention

Citations

 
[
  {
    "analysis": {
      "added": [
        "Expanded allowable uses to include funding supportive services in supportive housing."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill amends the use of funds in the Minnesota housing tax credit contribution account under section 462A.40, subdivision 2.",
      "modified": [
        "Clarifies the existing criteria for grants and loans awarded by the agency."
      ]
    },
    "citation": "462A.40",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Referenced definition of gap financing related to housing developments.",
      "modified": [
        ""
      ]
    },
    "citation": "462A.33",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Referenced services enumerated for use in existing supportive housing.",
      "modified": [
        ""
      ]
    },
    "citation": "462A.37",
    "subdivision": "subdivision 1, paragraph k"
  }
]

Sponsors