Purpose of the Bill

This bill aims to create the African American Workforce and Affordable Homeownership Development Program. The program's goal is to increase affordable housing available to African Americans in Minnesota and utilize African Americans as part of the workforce to achieve this goal.

Main Provisions

• Creation of Grants: Establishes grants for cities, tribal governments, nonprofit organizations, cooperatives, and community land trusts to develop affordable housing projects specifically for African American communities.
• Use of Funds: Grants can be used for various activities including:
  • Land acquisition
  • Environmental cleanup
  • Design and rehabilitation costs
  • Construction training and job placement activities
  • Development of affordable single-family residential housing
• Support of African American Businesses and Programs: Grants may also be used to support the creation or expansion of African American-run business development, job training, job placement programs, and housing organizations.
• Targeted Households: The program targets African American households earning 80% or less of the median state income for African Americans.

Significant Changes

• The bill introduces a new section in Minnesota Statutes that explicitly focuses on utilizing African American communities both as recipients of affordable housing and as a workforce in the development of this housing.
• Appropriates funds specifically for this initiative starting in fiscal year 2026, drawing from the state's general fund.

Implementation

• The commissioner will develop forms and procedures for the grant application process, with input from African American stakeholders and the Council for Minnesotans of African Heritage.
• There will be specified deadlines for grant applications to be submitted and reviewed semiannually.

Relevant Terms

African American, workforce development, affordable homeownership, grant funds, nonprofit organizations, housing development, median income, business development programs, job training, job placement, community land trusts.