SF2976

Purpose of the Bill

The purpose of this bill is to expand the use of funds in the Minnesota housing tax credit contribution account. It aims to allow these funds to be used not only for housing developments but also for supportive services in existing supportive housing.

Main Provisions

• The bill amends Minnesota Statutes 2024, specifically section 462A.40, subdivision 2.
• It specifies that funds may now be used for supportive services in supportive housing. Previously, funds could be used for multifamily and single-family developments for low and moderate-income families, including activities such as new construction, acquisition, rehabilitation, and more.
• The use of funds is broadened to include gap financing, demolition, and refinancing activities.
• The agency in charge may give preference to proposals that include regulatory changes or waivers resulting in cost savings, like increased density and flexible zoning.

Significant Changes to Existing Law

• The amendment explicitly adds funding for supportive services in supportive housing to the list of allowable uses for funds from the Minnesota housing tax credit contribution account. This broadens the scope of funding from purely infrastructure-related purposes to include service-related support.

Relevant Terms

Minnesota housing tax credit, supportive services, supportive housing, low-income families, tax credit account, gap financing, regulatory changes, cost reductions.