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HF1067 (Legislative Session 94 (2025-2026))

Exceptions to income limits of the Minnesota housing tax credit contribution account grant and loan program for certain workforce housing projects granted, and matching requirements of the workforce housing development program modified.

Related bill: SF1906

AI Generated Summary

House File No. 1067 is a proposal aimed at making changes to Minnesota's housing policies, specifically in terms of housing grants, loans, and the involvement of various entities in housing development. The key components of the bill are as follows:

  1. Adjustments to Grant and Loan Allocations:

    • The maximum amount that can be awarded in grants or deferred loans for a rental housing development project is set at 50 percent of the project's total cost.
    • There must be a matching contribution from local government, businesses, non-profit organizations, or federally recognized tribes, where $1 of local funds matches every $2 of state grant or loan funds.

  2. Use of Funds in the Grant and Loan Program:

    • The funds can be utilized for various purposes including new construction, acquisition, rehabilitation, and more, within workforce housing and developments for low to moderate-income families.
    • Preference may be given to project proposals that include cost-saving regulatory changes or waivers, such as increased density or flexibility in zoning.

  3. Eligibility for Receiving Grants and Loans:

    • Specific disqualifications are outlined to prevent conflicts of interest. These include disqualifications for individuals or businesses who have made contributions to the Minnesota housing tax credit account and received a credit in return, directly own or control significant portions of a business participating in the project, or are immediate family members of any such contributors.
    • Agencies may award grants or loans to various entities such as cities, tribes, private developers, nonprofit organizations, and housing authorities among others. These entities must use the funds to serve households within specific income limits, although some exceptions are provided.

  4. Disclosure Requirements:

    • Before applying for a grant or a loan, all potential recipients must sign a disclosure affirming that none of the disqualifications apply to them. The Minnesota Housing Finance Agency will rely on these disclosures to determine recipient eligibility.

Overall, this bill aims to modify and clarify the funding and eligibility processes for housing development projects intended to support workforce housing initiatives and to support low and moderate-income families in Minnesota, ensuring proper management of conflicts of interest and focusing on cost-effective measures.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 16, 2025HouseFloorActionIntroduction and first reading, referred toHousing Finance and Policy
February 19, 2025HouseFloorActionCommittee report, to adopt and re-refer toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Aligns grant awards with tax credit account specifications."
      ],
      "removed": [],
      "summary": "This bill modifies aspects of the workforce housing development program eligibility requirements under section 462A.39.",
      "modified": [
        "Adjusts matching fund requirements for eligible project areas."
      ]
    },
    "citation": "462A.39"
  },
  {
    "analysis": {
      "added": [
        "Preference is given to projects with cost-reducing regulatory changes."
      ],
      "removed": [],
      "summary": "Amendments in this bill impact the use of funds and eligibility criteria for the workforce housing grant and loan program under section 462A.40.",
      "modified": [
        "Clarifying disqualifications for individuals and entities from receiving grants or loans."
      ]
    },
    "citation": "462A.40"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references income limits as outlined in section 462A.33 related to eligibility for certain housing funding.",
      "modified": [
        "Serves as a reference for household income requirements considering use of funds."
      ]
    },
    "citation": "462A.33"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references section 469.001 as it relates to the powers granted to housing authorities.",
      "modified": []
    },
    "citation": "469.001"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references section 469.047 in conjunction with section 469.001 on housing authority powers.",
      "modified": []
    },
    "citation": "469.047"
  }
]

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