Purpose of the Bill

The purpose of this bill is to appropriate funds from the Minnesota state general fund to enhance affordable housing support across various regions, including counties, tier I cities, and eligible Tribal Nations. The bill seeks to strengthen the financial resources available for housing aid and support the Minnesota Housing Finance Agency.

Main Provisions

• Annual Appropriations:

  • $6,800,000 is allocated annually from the general fund for counties.
  • $2,000,000 is allocated annually from the general fund for tier I cities.
  • $1,200,000 is allocated annually from the general fund for eligible Tribal Nations.

• Additional Appropriations for 2024 and 2025:

  • An additional $8,500,000 for counties.
  • An additional $2,500,000 for tier I cities.
  • An additional $1,500,000 for eligible Tribal Nations.

• Additional Appropriations for 2026 and 2027:

  • An additional $17,000,000 for counties.
  • An additional $5,000,000 for tier I cities.
  • An additional $3,000,000 for eligible Tribal Nations.

• Funds Transfer:

  • For fiscal years 2024 and 2025, a portion of the funds allocated to counties will be redirected to the Minnesota Housing Finance Agency to maintain a specific account balance of $2,250,000.

• The commissioner of revenue is given flexibility regarding the timing of aid payments and the computation of additional amounts in certain fiscal years.

Significant Changes to Existing Law

This bill modifies the existing statute by significantly increasing and redistributing the affordable housing aids across the state over specific fiscal periods. It adjusts the state’s funding commitment to affordable housing in response to rising needs and specific local demands.

Relevant Terms

• Affordable Housing
• General Fund
• Appropriations
• Counties
• Tier I Cities
• Tribal Nations
• Minnesota Housing Finance Agency
• Fiscal Years