This bill requires that a portion of the local government aid given to cities in Minnesota be used specifically for improvements to housing that was built before 1940. Cities receiving this aid must allocate a part of it—based on the percentage of pre-1940 housing they have—towards updating or improving older residential buildings. This can involve enhancing utilities, insulation, wiring, plumbing, and heating or cooling systems. The aid can be used directly or can be offered through grants or low-interest loans to property owners. If the calculated amount for these purposes is less than $100, then no funds are required to be dedicated to these improvements. This new requirement is in addition to any other funding the cities already allocate to housing programs.