SF4571

Purpose

• To modify which projects can receive grants under the Greater Minnesota Housing Infrastructure Grant Program and to provide funding for these grants through state general obligation bonds.

Main Provisions

• Section 1 (Eligibility modifications):
  • Expands eligible projects for grants under the Greater Minnesota housing infrastructure program to include:
  • Single-family or multifamily housing developments, regardless of whether the units are owner-occupied or rental.
  • Housing projects funded under section 462A.39.
  • Manufactured home developments that qualify for homestead treatment under Minnesota Statutes, section 273.124 (subdivision 1.3a).
• Section 2 (Funding and bond authority):
  • Subdivision 1. Appropriation: $15,000,000 is appropriated from the bond proceeds fund to the Minnesota Housing Finance Agency for grants under the Greater Minnesota housing infrastructure grant program (as authorized by section 462A.395).
  • Subdivision 2. Bond sale: The Commissioner of Management and Budget must sell and issue bonds of up to $15,000,000 from the bond proceeds fund to finance the appropriation, under the terms of Minnesota law (Minnesota Statutes sections 16A.631 to 16A.675) and the state constitution (Article XI, sections 4 to 7).

Changes to Existing Law

• Expands what counts as an eligible project for the grant program (adds manufactured home developments and projects funded under 462A.39; clarifies eligibility for both owner-occupied and rental units).
• Authorizes a new $15 million general obligation bond program to fund these grants, sourced from the bond proceeds fund, with standard state bonding procedures.

Fiscal and Administrative Implications

• Increases state spending authority for the Greater Minnesota housing infrastructure grants by $15,000,000, funded through state general obligation bonds.
• Requires the appropriate state agencies (Management and Budget and the Minnesota Housing Finance Agency) to manage and implement the bond issuance and grant distribution under existing bonding and procurement rules.

Significance

• Broadens access to infrastructure-related housing grants for more types of housing developments, including manufactured homes, potentially expanding affordable housing options in Greater Minnesota.
• Uses a bond-financed approach to fund the grants, affecting state debt and capital planning.

Relevant Terms

• Greater Minnesota housing infrastructure grant program
• Eligible projects
• Single-family housing
• Multifamily housing
• Owner-occupied
• Rental
• Manufactured home development
• Homestead treatment
• Minnesota Housing Finance Agency
• Bond proceeds fund
• Appropriation
• General obligation bonds
• Bond sale
• Minnesota Statutes 462A.395
• Minnesota Statutes 462A.39
• Minnesota Constitution Article XI
• 16A.631 to 16A.675