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HF999 (Legislative Session 94 (2025-2026))

Community-based first-generation homebuyers assistance program modified, and money appropriated.

Related bill: SF1610

AI Generated Summary

This bill aims to modify and provide additional funding for the Community-Based First-Generation Homebuyers Assistance Program in Minnesota. The key points of the bill are:

  1. Increased Support: The Midwest Minnesota Community Development Corporation (MMCDC) is designated to administer the program, providing targeted assistance to eligible first-generation homebuyers. The assistance includes help with down payments, principal reduction, and closing costs.

  2. Eligibility Criteria:

    • The household income must be at or below 100% of the statewide median income.
    • At least one adult in the household must be preapproved for a first mortgage and has never owned a home or lost one to foreclosure.
    • An approved homebuyer education course must be completed before signing a purchase agreement.

  3. Financial Aid:

    • Assistance is capped at 10% of the purchase price of a one or two-unit home, not exceeding $32,000.
    • Starting in Fiscal Year 2027, the maximum assistance may adjust to 10% of the median home sales price from the previous year's Minnesota Realtors Annual Report.
    • The financial aid is presented as a no-interest loan that is forgivable over five years (20% forgiven annually).

  4. Program Fund Usage:

    • Funds can be used for down payments, closing costs, or principal reduction.
    • Recaptured funds may be retained by MMCDC to assist other eligible homebuyers.

  5. Administration and Reporting:

    • The program, administered by MMCDC, is available statewide and can include partnerships with other financial institutions and nonprofits.
    • MMCDC is responsible for yearly reporting to the legislature, detailing the usage and impact of the program including demographic breakdowns and the number of loans issued.

  6. Appropriation:

    • $25,000,000 is allocated for Fiscal Year 2026 and $50,000,000 for Fiscal Year 2027 from the general fund to MMCDC for program operation and management.
    • Unused funds are to be returned to the Minnesota Housing Finance Agency at the end of each biennium.

This legislation aims to increase home ownership among first-generation buyers by reducing financial barriers and providing educational resources, enhancing the stability and prosperity of communities across Minnesota.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 16, 2025HouseFloorActionIntroduction and first reading, referred toHousing Finance and Policy
March 11, 2025HouseFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references existing regulation regarding mortgage lending standards under the federal law.",
      "modified": [
        "Clarifies that funds must be used in conjunction with a mortgage loan meeting certain federal standards."
      ]
    },
    "citation": "Code of Federal Regulations title 12 section 1026.43"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references the existing Minnesota Statute 462A.38 for the administration of specific housing programs.",
      "modified": []
    },
    "citation": "462A.38"
  }
]

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