SF4867
Local affordable housing aid distribution modification
Legislative Session 94 (2025-2026)
Related bill: HF5014
AI Generated Summary
Purpose
This bill changes how the proceeds from Minnesota’s metropolitan sales tax are divided to support local affordable housing and rent assistance. It creates and directs funds to three specific accounts within the housing assistance system and sets up annual funding to cities.
Main Provisions
Distribution of metropolitan sales tax proceeds
- 25 percent goes to the state rent assistance account (in the housing assistance fund) under section 462A.2095.
- 25 percent goes to the metropolitan city aid account (in the housing assistance fund) under section 477A.37.
- 50 percent goes to the metropolitan county aid account (in the housing assistance fund) under section 477A.37.
- These distributions are specified “notwithstanding” other rules, meaning they are mandatory allocations as described.
Establishment and use of the metropolitan city aid account
- A metropolitan city aid account is created within the housing assistance fund.
- The account’s money comes from the 297A.9925 distribution and any other money donated, allotted, transferred, or otherwise provided.
- Money in this account is annually appropriated to the commissioner of revenue to make payments to cities as allowed under section 477A.35.
Significance and Potential Effects
- Creates explicit, dedicated funding streams within the housing assistance framework for city and county aid and for rent assistance.
- Shifts or locks in how metropolitan sales tax revenue supports local housing programs, with a formal mechanism for annual city payments.
- Aligns funding with existing statute sections (462A.2095, 477A.37, 297A.9925, 477A.35), clarifying administration and distribution.
Administrative Notes
- The text references specific Minnesota Statutes (e.g., 297A.9925, 477A.37, 462A.2095, 477A.35) and their subsections, indicating where the funds are sourced and how they are disbursed.
Potential Clarifications
- The distribution条 shows a total of 25% + 25% + 50% = 100%. The printed text has a formatting quirk around the “50 2 75 percent” segment, but it appears to intend 50 percent to the metropolitan county aid account.
Language to Watch
- Metropolitan sales tax
- State rent assistance account
- Housing assistance fund
- Metropolitan city aid account
- Metropolitan county aid account
- Sections: 462A.2095, 477A.37, 297A.9925, 477A.35
Relevant Terms - metropolitan sales tax - state rent assistance account - housing assistance fund - metropolitan city aid account - metropolitan county aid account - Minnesota Statutes 2024 section 462A.2095 - Minnesota Statutes 2024 section 477A.37 - Minnesota Statutes 2024 section 297A.9925 - Minnesota Statutes 2024 section 477A.35 - payments to cities - annual appropriation - local affordable housing aid - taxes and housing funding
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 26, 2026 | Senate | Action | Introduction and first reading | ||
| March 26, 2026 | Senate | Action | Referred to | Taxes |
Citations
[
{
"analysis": {
"added": [
"Allocates 25 percent of the proceeds to the state rent assistance account under section 462A.2095.",
"Allocates 25 percent of the proceeds to the metropolitan city aid account in the housing assistance fund under section 477A.37.",
"Allocates 50 percent of the proceeds to the metropolitan county aid account in the housing assistance fund under section 477A.37."
],
"removed": [],
"summary": "This section is amended to restructure the distribution of metropolitan sales tax proceeds among housing assistance fund accounts.",
"modified": [
"Revises the distribution formula for metropolitan sales tax proceeds to a 25/25/50 split among state rent assistance, metropolitan city aid, and metropolitan county aid accounts."
]
},
"citation": "297A.9925",
"subdivision": "subd. 4"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references the state rent assistance account under section 462A.2095 as the recipient for a portion of proceeds; the underlying statute itself is not amended by this text.",
"modified": []
},
"citation": "462A.2095",
"subdivision": ""
},
{
"analysis": {
"added": [
"Creation of the metropolitan city aid account in the housing assistance fund and definition of its sources.",
"Provision that money in the metropolitan city aid account is annually appropriated to the commissioner of revenue for payments to cities as provided under section 477A.35."
],
"removed": [],
"summary": "This section is amended to establish and fund the metropolitan city aid account within the housing assistance fund and to specify annual appropriations related to payments to cities.",
"modified": [
"Subd. 3 is amended to implement the metropolitan city aid account and its annual appropriation mechanism."
]
},
"citation": "477A.37",
"subdivision": "subd. 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill uses a Notwithstanding clause referencing section 297A.94 in relation to the distribution of metropolitan sales tax proceeds; no direct amendment to 297A.94 itself is shown.",
"modified": []
},
"citation": "297A.94",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references section 477A.35 as the basis for payments to cities from the metropolitan city aid account; there is no direct amendment to 477A.35 in this text.",
"modified": []
},
"citation": "477A.35",
"subdivision": ""
}
]Progress through the legislative process
In Committee