HF2693

Purpose of the Bill

This bill aims to enhance housing efforts within Minnesota by establishing a locally controlled housing fund and modifying the uses of housing infrastructure bonds. Additionally, it seeks to provide an appropriation for the sale and issuance of state bonds.

Main Provisions

• Locally Controlled Housing Fund: The bill establishes a program that allows cities, counties, American Indian Tribes, and Tribally designated housing entities to apply for grants to develop or acquire housing, with the ownership retained for at least 50 years.
• Housing Infrastructure Bonds: The bill authorizes the issuance of $30 million in housing infrastructure bonds. These bonds can be used for:
  • Supportive housing for people without permanent residences.
  • Acquisition and rehabilitation of abandoned or foreclosed properties for affordable rental or home ownership.
  • Development of senior and single-family housing.
  • Assistance for federally assisted rental housing projects.
  • Cooperatively owned housing for low and moderate-income households.
• Priority and Preference:
  • Preference is given to projects aiding veterans and those without permanent residences for over a year.
  • Projects ensuring affordability for extremely low-income households and senior-friendly services receive priority.
• Accessible Housing Requirements: New buildings with more than four units must include accessible and sensory-accessible units, built with soundproofing, low-fume materials, and non-fluorescent lighting.

Significant Changes to Existing Law

• Modification in Bond Use: The bill broadens the allowable use of housing infrastructure bonds to include more specific types of housing and renovation projects.
• Introduction of Locally Controlled Housing: Establishes new accounts within a housing development fund and bond proceeds fund to finance locally administered housing projects.
• Reporting Requirement: An annual report outlining the funded housing projects must be submitted to relevant legislative committees.

Relevant Terms

• Housing infrastructure bonds
• Locally controlled housing program
• Affordable housing
• Supportive housing
• Permanent residence
• Community land trusts
• Bond proceeds fund
• Accessibility provisions