HF2901

Purpose of the Bill

The bill aims to expand the ways in which funds from the Minnesota housing tax credit contribution account can be used. Specifically, it seeks to include the funding of supportive services within supportive housing as an allowable use of these funds.

Main Provisions

• The bill proposes an amendment to Minnesota Statutes 2024, section 462A.40, subdivision 2.
• It allows the awarded funds to be used for a range of housing-related activities including gap financing, new construction, acquisition, rehabilitation, demolition, construction financing, permanent financing, interest rate reduction, and refinancing.
• The bill introduces the use of funds for services in existing supportive housing as outlined in another statute.

Significant Changes

• The primary change involves expanding the allowable uses of Minnesota housing tax credit contributions to include funding for supportive services in supportive housing.
• This marks a shift from merely funding physical housing developments to supporting comprehensive service-based housing solutions aimed at individuals and families with low and moderate income.

Relevant Terms

supportive housing, housing tax credit contribution, multifamily developments, supportive services, gap financing, regulatory changes, cost reductions, site development standards.