HF4826

Purpose

• Establish a new pilot housing program called the Justice 4 Us The People Pilot Program.
• Provide a one-time funding boost to support acquiring vacant, distressed, or foreclosed properties and turning them into housing for people with low incomes (specifically at or below 50% of the area median income).

What the bill would do

• In fiscal year 2027, appropriate $10 million from the general fund to the Minnesota Housing Finance Agency (MHFA).
• MHFA would grant this money to Justice 4 Us The People, a 501(c)(3) nonprofit, to create a program that:
  • Acquires vacant, distressed, or foreclosed properties that can be used for residential purposes.
  • Pre-designs, designs, constructs, or renovates housing so it can be sold or rented to households at or below 50% of area median income (AMI).

Participant requirements

• People who acquire or rent the homes must:
  • participate in Justice 4 Us The People’s homeownership training and counseling program,
  • contribute to the construction or renovation of the home with capital or in-kind contributions,
  • commit to maintaining the home while they occupy it.

Funding use and limits

• The program may use up to 10% of the appropriation for homeownership training and counseling.
• This is a one-time appropriation and is available until June 30, 2029.

Administration and oversight

• Administered through MHFA as a pilot program.
• The funding is provided as a grant to the Justice 4 Us The People organization to implement the housing program.

Timeline and sunset

• Funds are available for fiscal year 2027 and the program is set as a one-time, time-limited effort ending with availability on June 30, 2029.

Significant changes to existing law (new program)

• Creates the Justice 4 Us The People Pilot Program and designates a dedicated one-time General Fund appropriation to MHFA for a grant to Justice 4 Us The People.
• Establishes participation requirements for homebuyers/renters and sets a limit on how much can be used for training and counseling.

Relevant Terms - Justice 4 Us The People Pilot Program - Minnesota Housing Finance Agency (MHFA) - General Fund - Foreclosed / Distressed / Vacant properties - Residential housing - 50% of area median income (AMI) - Homeownership training and counseling - Capital contributions - In-kind contributions - Maintenance obligations - 501(c)(3) nonprofit - One-time appropriation - Fiscal year 2027 - Available until June 30, 2029