SF2681

Purpose of the Bill

This bill aims to improve housing opportunities in Minnesota by providing financial assistance for manufactured homes and supporting cooperative ownership of manufactured home parks. It involves transferring funds and appropriating money to specific housing programs.

Main Provisions

• Housing Development Fund Transfer: A one-time transfer of $10,000,000 from the general fund to the housing development fund will occur in fiscal year 2026. This is to support housing initiatives.

• Manufactured Home Down Payment Assistance Program:

  • Appropriation of $5,000,000 from the housing development fund to NeighborWorks Home Partners.
  • The funds will be used to administer a down payment assistance program and a related financing product for manufactured homes.
  • Eligible home buyers can combine this assistance with other potential aid, and loans are flexible in their priority positioning.

• Manufactured Home Park Cooperative Purchase Program:

  • Appropriation of $5,000,000 to the Northcountry Cooperative Foundation.
  • The funds will support financial assistance to help convert manufactured home parks to cooperative ownership, encouraging resident ownership.
  • Various financial structures may be provided, such as direct loans, interest rate subsidies, loan guarantees, and deferred or forgivable loans.
  • Any deed purchased with a loan must include a covenant ensuring the property is used as a manufactured home park for at least 30 years.

Significant Changes

• The bill introduces new funding and financial structures to aid in down payment assistance and the cooperative purchase of manufactured home parks.
• It emphasizes long-term residential use of manufactured home parks under cooperative ownership by including a 30-year use covenant.

Relevant Terms

• Housing Development Fund
• Manufactured Home
• Down Payment Assistance
• Cooperative Ownership
• Manufactured Home Park
• Loan Guarantees
• Interest Rate Subsidy
• Forgivable Loans