SF1906

This bill (Senate File No. 1906) relates to housing policy in Minnesota, specifically addressing exceptions to income limits for certain workforce housing projects and modifying matching requirements for the workforce housing development program.

Key Provisions:

1. Grant and Loan Allocation (Amendment to Minn. Stat. 462A.39, Subd. 5):

   • A grant or deferred loan from the program cannot exceed 50% of a housing project’s cost.
   • Eligible project areas must provide matching funds, with every $2 of state funds requiring a $1 local match from a government, business, nonprofit, or federally recognized tribe.
   • If a project receives an award funded by Minnesota housing tax credit contributions designated for a specific project, those contributions can count towards the matching requirement.

2. Use of Funds for Workforce Housing (Amendment to Minn. Stat. 462A.40, Subd. 2):

   • Grants and loans can be used for workforce housing, as well as multi-family and single-family housing for low- and moderate-income households.
   • Allowable uses of funds include construction, acquisition, rehabilitation, demolition, construction financing, permanent financing, interest rate reduction, and refinancing.
   • Preference may be given to proposals that include regulatory changes—such as increased housing density or zoning flexibility—that reduce costs.

3. Eligibility and Restrictions (Amendment to Minn. Stat. 462A.40, Subd. 3):

   • Grants and loans cannot be awarded to individuals or businesses that previously contributed to the program’s tax credit account and received a credit certificate.
   • Definitions of "disqualified individual" and "disqualified business" are provided, based on connections to prior contributions.
   • Applicants must certify that they are not disqualified from receiving funds.
   • Grants and loans may be awarded to various housing-related entities, including cities, tribal housing corporations, private developers, nonprofit organizations, and housing authorities.
   • Recipients must generally use the funds to assist households within specified income limits, except for certain workforce housing projects.

This bill aims to improve access to workforce housing by adjusting funding mechanisms, streamlining regulatory processes, and ensuring responsible allocation of public funds.