SF4967

Purpose

• This bill provides a one-time appropriation to support a housing program. Specifically, it allocates funds to expand and administer a Special Purpose Credit Loan program run by Build Wealth MN, using a revolving loan pool to help underserved borrowers in communities of color access affordable mortgage financing.

Main Provisions

• Fiscal year 2027 General Fund amount: $2,000,000.
• Source and recipient: the appropriation is to the Commissioner of the Housing Finance Agency (HFA) as a grant to Build Wealth MN.
• Program purpose: to expand and administer a Special Purpose Credit Loan (SPCL) program.
• Financial mechanism: creation/use of a revolving loan pool.
• Target beneficiaries: underserved borrowers in communities of color.
• Nature of funding: this is a one-time appropriation (not ongoing funding).

Significance and Changes to Law

• Establishes or expands the SPCL program through Build Wealth MN, funded by a one-time General Fund grant.
• Provides a dedicated financing mechanism (revolving loan pool) to offer affordable mortgage options to targeted communities.
• Represents a new or expanded targeted housing finance effort, with funding tied to a specific fiscal year (2027) and not ongoing appropriations.

Fiscal Impact

• Amount: $2,000,000 from the General Fund.
• Timing: available in Fiscal Year 2027.
• Use: to grant to Build Wealth MN for the SPCL program and revolving loan pool.

Agencies and Entities Involved

• Minnesota Housing Finance Agency (HFA) – administers the appropriation to distribute as a grant.
• Build Wealth MN – recipient of the grant to expand and administer the SPCL program.

Implementation Notes

• The bill specifies a one-time appropriation; ongoing funding or program expansion beyond FY2027 would require additional legislation or appropriations.
• The revolving loan pool is described as part of the SPCL program to provide affordable mortgage financing to the targeted populations.

---

Relevant Terms Build Wealth MN Special Purpose Credit Loan program (SPCL) revolving loan pool affordable mortgage financing underserved borrowers communities of color Housing Finance Agency (HFA) general fund grant one-time appropriation fiscal year 2027