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SF3503 (Legislative Session 94 (2025-2026))

Locally controlled housing fund establishment; allowable uses for housing infrastructure bonds modification; sale and issuance of state bonds authorization; appropriating money

Related bill: HF2693

AI Generated Summary

Purpose of the Bill

This bill aims to enhance housing opportunities in Minnesota by establishing a locally controlled housing fund. It seeks to modify the allowable uses of housing infrastructure bonds and mandates annual reporting on the utilization of these funds. Additionally, it authorizes the sale and issuance of state bonds to finance housing initiatives.

Main Provisions

  1. Locally Controlled Housing Fund: The bill proposes the creation of two accounts within a newly established locally controlled housing program: one in the housing development fund and another in the bond proceeds fund. These accounts will support funding for eligible recipients to develop affordable housing.

  2. Eligible Recipients: Cities, counties, federally recognized American Indian Tribes, or Tribally designated housing entities may receive funding to develop housing. The ownership of this housing must be retained for at least 50 years.

  3. Use of Funds: Funds must be used for the acquisition, design, and construction of affordable housing. Specific income limitations apply:

    • Multifamily properties must have at least 30% of units occupied by households earning no more than 50% of the area's median income.
    • Single-family properties must only house households earning up to 50% of the area's median income.

  4. Housing Types and Requirements:

    • Priority is given to supportive housing for veterans, individuals, or families at risk of homelessness.
    • Senior housing projects should demonstrate affordability and include services for residents.
    • Ensures accessibility features in newly constructed housing.

  5. Bonds and Financing: Allows the issuance of up to $30 million in housing infrastructure bonds to fund these initiatives. Secondary financing can leverage additional funding sources such as low-income housing tax credits.

  6. Operation and Administration: Housing may be operated by the recipient or a third-party as long as management complies with designated standards. The law also mandates equal distribution of housing projects between metropolitan and non-metropolitan areas and offers technical assistance to recipients.

  7. Reporting Requirements: Annual reports are required to update the legislature on funded projects, starting January 2026.

Significant Changes to Existing Law

  • Modification of Housing Infrastructure Bond Use: The bill broadens the purposes for which these bonds can be used, including construction, acquisition, and rehabilitation of various housing types.
  • Introduction of New Funding Structures: The bill implements a new locally controlled program with distinct financing mechanisms and requirements, emphasizing long-term affordability and housing accessibility.

Relevant Terms

  • Housing Fund
  • Housing Infrastructure Bonds
  • Affordable Housing
  • Community Land Trust
  • Permanent and Supportive Housing
  • Senior Housing
  • American Indian Tribe Housing
  • Income Limits
  • Accessibility Features

Bill text versions

Past committee meetings

Actions

DateChamberWhereTypeNameCommittee Name
May 09, 2025SenateFloorActionIntroduction and first reading
May 09, 2025SenateFloorActionReferred toHousing and Homelessness Prevention

Citations

 
[
  {
    "analysis": {
      "added": [
        "Added clarity on purposes for which bonds may be used, expanding acceptable uses."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies the allowable uses of housing infrastructure bonds under section 462A.37.",
      "modified": [
        "Adjusted terms and conditions for issuing housing infrastructure bonds."
      ]
    },
    "citation": "462A.37",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This section is referenced to allow the financing of manufactured home parks.",
      "modified": [
        "Clarifies inclusion of manufactured home parks under the financing terms."
      ]
    },
    "citation": "462A.2035",
    "subdivision": "subdivision 1b"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors