SF1799

This bill, Minnesota Senate File No. 1799, pertains to housing infrastructure bonds and aims to expand their use to adaptive reuse projects for developing supportive and permanent housing for households earning at or below 50% of the area median income. The bill amends Minnesota Statutes 2024, Section 462A.37, Subdivision 2, to allow the Minnesota Housing Finance Agency to issue up to $30 million in housing infrastructure bonds for various types of affordable housing projects.

Key Provisions:

1. Expanded Use of Housing Infrastructure Bonds – The bonds may now be used for:

   • Adaptive reuse projects, converting existing structures into supportive and permanent housing.
   • Construction, acquisition, and rehabilitation of supportive housing where at least 50% of units are reserved for people experiencing homelessness.
   • Acquisition and rehabilitation of foreclosed or abandoned housing for affordable rental or homeownership.
   • Development of affordable senior housing and cooperatively owned housing.
   • Financing permanent housing for households earning ≤50% of area median income.

2. Prioritization for Certain Groups:

   • Preference for permanent supportive housing will be given to veterans and individuals/families who:
     • Have been homeless for at least 12 months or four times within the last three years.
     • Are at high risk of prolonged homelessness.
   • Priority for senior housing projects that:
     • Commit to long-term affordability.
     • Leverage additional funding sources (e.g., low-income housing tax credits).
     • Provide resident services that support aging in place.

3. Statewide Loan Distribution:

   • The Minnesota Housing Finance Agency must balance loans between metropolitan and greater Minnesota areas.
   • Further, loans for projects outside metro areas must be distributed equitably between small and large cities/counties.

4. Accessibility and Sensory-Friendly Requirements for New Construction:

   • Buildings with more than 4 units using bond-financed loans must include:
     • At least 5% accessible units with features such as roll-in showers and accessible kitchen work surfaces.
     • At least 5% sensory-accessible units, incorporating features like:
     • Soundproofing, non-fluorescent lighting, low-fume paint, and low-chemical carpeting.

This legislation seeks to address homelessness, affordability, and accessibility by expanding funding opportunities and prioritizing vulnerable populations, ensuring equitable housing development across Minnesota.