HF4926

Purpose

• Allow the state to raise funds for housing projects by issuing housing infrastructure bonds.
• Expand the agency’s authority to borrow, supporting additional housing-related investments.

Main provisions

• Adds a new subdivision (Subd. 2l) to Minnesota Statutes 2024, section 462A.37 (Additional authorization).
• The agency may issue up to $50,000,000 in housing infrastructure bonds, in one or more series.
• Payments on these bonds may be pledged to secure the bonds under this section.
• The bill involves appropriating money to support this bonding authority and amends Minnesota Statutes 2025 Supplement, section 462A.37, subdivision 5, to reflect the additional authorization.
• This builds on existing bonding authorities in subdivisions 1–2 to 2k and 3a, adding the new $50 million capacity.

Significant changes to existing law

• Creates a new bonding authorization (Subd. 2l) that adds up to $50 million in housing infrastructure bonds.
• Allows bond payments to be pledged as security for these bonds.
• Expands the state’s ability to finance housing infrastructure through the agency, and updates related statutory references to include the new subdivision and its terms.

How it works in practice (simplified)

• The agency issues housing infrastructure bonds up to $50 million.
• The payments (debt service) for those bonds may be pledged, meaning pledged revenues or payments are used to repay the bonds.
• The law is amended to incorporate this new authority into current housing finance rules.

Potential impact (high level)

• Increases financing options for housing projects by adding a new, dedicated bond authority.
• Could accelerate funding for housing initiatives via bond-backed financing.

Relevant Terms housing infrastructure bonds up to $50,000,000 one or more series pledged payments section 462A.37 Subd. 2l Additional authorization Minnesota Statutes 2024 Minnesota Statutes 2025 Supplement 462A.37 subdivision 5 agency housing finance / housing infrastructure financing bonding authority