HF1340

HF1340 (Legislative Session 94 (2025-2026))

Use of housing infrastructure bonds allowed on adaptive reuse to develop supportive housing and permanent housing for households at or below 50 percent of the area median income.

Related bill: SF1799

AI Generated Summary

This bill proposes an amendment to Minnesota Statutes 2024, section 462A.37, subdivision 2, governing the use of housing infrastructure bonds. The key provisions include:

Expansion of Housing Infrastructure Bond Usage: The bill allows these bonds to be used for adaptive reuse projects to develop supportive and permanent housing for households earning at or below 50% of the area median income.
Authorized Bond Issuance: The Minnesota Housing Finance Agency (MHFA) is authorized to issue up to $30 million in housing infrastructure bonds.
Eligible Housing Projects: The funds can be used for:
- Construction, acquisition, rehabilitation, and adaptive reuse of supportive housing for individuals and families without a permanent residence.
- Purchase and renovation of foreclosed or abandoned housing for affordable rental or homeownership.
- Financing of land acquisition for community land trusts serving low- and moderate-income homebuyers.
- Acquisition and improvement of manufactured home parks.
- Development of senior housing.
- Acquisition, rehabilitation, or replacement of federally assisted rental housing.
- Construction, rehabilitation, and adaptive reuse of single-family housing.
- Development of cooperatively owned housing affordable for low- and moderate-income households.
Prioritization of Projects:
- Preference for permanent supportive housing targeting veterans and individuals experiencing long-term or repeated homelessness.
- Senior housing projects demonstrating affordability commitments, leveraging additional funding sources, providing services for aging residents, and prioritizing extremely low-income households (below 30% of area median income).
- A balance of funding between metropolitan and non-metropolitan areas, including prioritization of small and large community projects.
Accessibility Requirements for New Construction:
- Buildings with more than four units must include at least one (or 5%) of units as:
  - Fully accessible (featuring roll-in showers, accessible water closets, and kitchen work surfaces).
  - Sensory-accessible (including soundproofing, non-fluorescent lighting, low-fume paint, and low-chemical carpet and adhesives).

The bill aims to address affordable housing needs, give priority to vulnerable populations, and promote accessibility in housing developments.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 23, 2025	House	Floor	Action	Introduction and first reading, referred to	Housing Finance and Policy
February 25, 2025	House	Floor	Action	Author added
April 01, 2025	House	Floor	Action	Author added

Citations

[
  {
    "analysis": {
      "added": [
        "Provision to use housing infrastructure bonds for manufactured home parks improvement."
      ],
      "removed": [
        "N/A"
      ],
      "summary": "Financing provisions for acquisition, improvement, and infrastructure of manufactured home parks under section 462A.2035.",
      "modified": [
        "Clarified on the financing amount and use cases for existing parks."
      ]
    },
    "citation": "462A.2035"
  }
]