1.1 A bill for an act
1.2 relating to housing; granting exceptions to income limits of the Minnesota housing
1.3 tax credit contribution account grant and loan program for certain workforce
1.4 housing projects; modifying the matching requirements of the workforce housing
1.5 development program; amending Minnesota Statutes 2024, sections 462A.39,
1.6 subdivision 5; 462A.40, subdivisions 2, 3.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2024, section 462A.39, subdivision 5, is amended to read:
1.9 Subd. 5.Allocation.The amount of a grant or deferred loans may not exceed 50 percent
1.10of the rental housing development project cost. The commissioner shall not award a grant
1.11or deferred loans to an eligible project area without certification by the eligible project area
1.12that the amount of the grant or deferred loans shall be matched by a local unit of government,
1.13business, nonprofit organization, or federally recognized Tribe, with $1 for every $2 provided
1.14in grant or deferred loans funds. If an eligible project area is selected for an award of a grant
1.15or loan under section 462A.40 and the award is funded by contributions to the Minnesota
1.16housing tax credit account that are intended for a specific project in the eligible project area,
1.17the amount of the award may count toward the matching requirement of this subdivision.
1.18 Sec. 2. Minnesota Statutes 2024, section 462A.40, subdivision 2, is amended to read:
1.19 Subd. 2.Use of funds; grant and loan program.(a) The agency may award grants and
1.20loans to be used for workforce housing and for multifamily and single family developments
1.21for persons and families of low and moderate income. Allowable use of the funds include:
1.22gap financing, as defined in section 462A.33, subdivision 1; new construction; acquisition;
1Sec. 2.
REVISOR MS/ES 25-0289101/28/25
State of Minnesota
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HOUSE OF REPRESENTATIVES
H. F. No. 1067
NINETY-FOURTH SESSION
Authored by Dotseth and Igo02/17/2025
The bill was read for the first time and referred to the Committee on Housing Finance and Policy 2.1rehabilitation; demolition or removal of existing structures; construction financing; permanent
2.2financing; interest rate reduction; and refinancing.
2.3 (b) The agency may give preference for grants and loans to comparable proposals that
2.4include regulatory changes or waivers that result in identifiable cost avoidance or cost
2.5reductions, including but not limited to increased density, flexibility in site development
2.6standards, or zoning code requirements.
2.7 Sec. 3. Minnesota Statutes 2024, section 462A.40, subdivision 3, is amended to read:
2.8 Subd. 3.Eligible recipients; definitions; restrictions; use of funds.(a) The agency
2.9may award a grant or a loan to any recipient that qualifies under subdivision 2. The agency
2.10must not award a grant or a loan to a disqualified individual or disqualified business.
2.11 (b) For the purposes of this subdivision disqualified individual means:
2.12 (1) an individual who or an individual whose immediate family member made a
2.13contribution to the account in the current or prior taxable year and received a credit certificate;
2.14 (2) an individual who or an individual whose immediate family member owns the housing
2.15for which the grant or loan will be used;
2.16 (3) an individual who meets the following criteria:
2.17 (i) the individual is an officer or principal of a business entity; and
2.18 (ii) that business entity made a contribution to the account in the current or previous
2.19taxable year and received a credit certificate; or
2.20 (4) an individual who meets the following criteria:
2.21 (i) the individual directly owns, controls, or holds the power to vote 20 percent or more
2.22of the outstanding securities of a business entity; and
2.23 (ii) that business entity made a contribution to the account in the current or previous
2.24taxable year and received a credit certificate.
2.25 (c) For the purposes of this subdivision disqualified business means a business entity
2.26that:
2.27 (1) made a contribution to the account in the current or prior taxable year and received
2.28a credit certificate;
2.29 (2) has an officer or principal who is an individual who made a contribution to the
2.30account in the current or previous taxable year and received a credit certificate; or
2Sec. 3.
REVISOR MS/ES 25-0289101/28/25 3.1 (3) meets the following criteria:
3.2 (i) the business entity is directly owned, controlled, or is subject to the power to vote 20
3.3percent or more of the outstanding securities by an individual or business entity; and
3.4 (ii) that controlling individual or business entity made a contribution to the account in
3.5the current or previous taxable year and received a credit certificate.
3.6 (d) For purposes of this subdivision, "immediate family" means the taxpayer's spouse,
3.7parent or parent's spouse, sibling or sibling's spouse, or child or child's spouse. For a married
3.8couple filing a joint return, the limitations in this subdivision apply collectively to the
3.9taxpayer and spouse.
3.10 (e) Before applying for a grant or loan, all recipients must sign a disclosure that the
3.11disqualifications under this subdivision do not apply. The Minnesota Housing Finance
3.12Agency must prescribe the form of the disclosure. The Minnesota Housing Finance Agency
3.13may rely on the disclosure to determine the eligibility of recipients under paragraph (a).
3.14 (f) The agency may award grants or loans to a city as defined in section 462A.03,
3.15subdivision 21; a federally recognized American Indian tribe or subdivision located in
3.16Minnesota; a tribal housing corporation; a private developer; a nonprofit organization; a
3.17housing and redevelopment authority under sections 469.001 to 469.047; a public housing
3.18authority or agency authorized by law to exercise any of the powers granted by sections
3.19469.001 to 469.047; or the owner of the housing. The provisions of subdivision 2, and
3.20paragraphs (a) to (e) and (g) of this subdivision, regarding the use of funds and eligible
3.21recipients apply to grants and loans awarded under this paragraph.
3.22 (g) Eligible recipients must use the funds to serve households that meet the income limits
3.23as provided in section 462A.33, subdivision 5. This requirement does not apply to a project
3.24meeting the requirements of section 462A.39, subdivision 4, paragraph (a).
3Sec. 3.
REVISOR MS/ES 25-0289101/28/25