Purpose

• This bill would provide a one-time grant from Minnesota’s general fund to support affordable housing. Specifically, it directs money to the Minnesota Housing Finance Agency to fund a grant to the Arrowhead Economic Opportunity Agency (AEOA).

Main provisions

• Amount and source: A one-time appropriation of $2,000,000 in fiscal year 2026 from the general fund.
• Recipient and administration: The grant goes to the Arrowhead Economic Opportunity Agency, with the Minnesota Housing Finance Agency administering the funds.
• Use of funds: The grant must be used as a revolving fund to acquire and rehabilitate properties that have been tax-forfeited.
• Occupancy and affordability: The properties acquired and rehabilitated with this fund are to be used for owner occupancy and must be affordable to the local workforce.
• Timeframe: This is a one-time appropriation (not a continuing funding program).

How it works

• The revolving fund structure means the money can be reused to acquire and rehabilitate additional tax-forfeited properties over time, expanding the supply of owner-occupied housing that is affordable to local workers.

Significance and changes to law

• Creates a new, one-time funding mechanism specifically aimed at leveraging tax-forfeited properties for owner-occupied, workforce-affordable housing in the Arrowhead region.
• No ongoing appropriation is created; the bill establishes the initial $2,000,000 grant and its revolving-use requirements.

Implementation considerations

• Oversight and administration would be handled by the Minnesota Housing Finance Agency, with eligibility tied to properties being tax-forfeited and intended for owner-occupancy by members of the local workforce.

Relevant Terms - appropriation - general fund - Minnesota Housing Finance Agency - Arrowhead Economic Opportunity Agency - revolving fund - tax-forfeited properties - owner occupancy - affordable to the local workforce - one-time appropriation - fiscal year 2026