SF1913

This Minnesota Senate bill (S.F. No. 1913) proposes the establishment of a Locally Controlled Housing Fund under Minnesota Statutes, chapter 462A. The fund is designed to support cities, counties, tribal entities, and other eligible recipients in acquiring, rehabilitating, demolishing, or constructing housing. It may also be used for various types of financing (construction, permanent, interest rate reduction, refinancing, and gap financing) to increase locally controlled housing stock.

Key Provisions:

1. Eligibility:

   • Eligible recipients include cities, counties, federally recognized American Indian Tribes, tribal housing corporations, community land trusts, and local housing authorities.
   • Approved partners include nonprofit organizations or housing cooperatives.

2. Fund Operations:

   • The fund will function as a revolving loan fund.
   • Eligible recipients can reinvest proceeds from housing projects after repaying their initial awards.
   • The agency must allocate funding evenly between metropolitan and nonmetropolitan areas and prioritize accessibility in projects.

3. Income and Affordability Requirements:

   • Housing units must serve a mix of income levels, ensuring at least 30% of multifamily units are for households earning ≤50% area median income (AMI) and another 30% for households earning between 50%-100% AMI.
   • Single-family homes must be occupied by households earning at or below 50% of area median income.

4. Housing Protections:

   • Housing projects must comply with accessibility requirements.
   • Housing design must avoid segregation based on income or rent levels.
   • Lease agreements must include tenant protections similar to those in public housing.

5. Sale Restrictions:

   • Eligible recipients cannot sell their ownership stake in locally controlled housing without approval from the agency.
   • If sold, recipients must repay the locally controlled housing fund for any outstanding balance.

6. Administration and Reporting:

   • The Housing Finance Agency will employ a full-time director to oversee the fund.
   • An annual report on funded projects and expenditures must be submitted to the legislature starting January 15, 2026.

7. Appropriation:

   • Funding for the Locally Controlled Housing Fund will come from the general fund in fiscal year 2026.

Purpose:

This bill aims to create a sustainable financing mechanism to increase the availability of affordable, locally controlled housing in Minnesota, ensuring equitable investment across different regions and income levels.