Minnesota 2025-2026 Regular Session

Minnesota House Bill HF2740 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to housing; requiring a report on the affordable housing industry; setting
3	3	1.3 a maximum compliance period for certain low-income tax credit commitment
4	4	1.4 requirements; requiring the commissioner of the Minnesota Housing Finance
5	5	1.5 Agency to identify avenues for potential regulatory relief to affordable housing
6	6	1.6 providers; transferring money; appropriating money; amending Minnesota Statutes
7	7	1.7 2024, sections 462A.07, subdivision 19, by adding a subdivision; 462A.222, by
8	8	1.8 adding a subdivision.
9	9	1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
10	10	1.10 Section 1. Minnesota Statutes 2024, section 462A.07, subdivision 19, is amended to read:
11	11	1.11 Subd. 19.Report to the legislature.(a) By February 15 each year, the commissioner
12	12	1.12must submit a report to the chairs and ranking minority members of the legislative committees
13	13	1.13having jurisdiction over housing finance and policy containing the following information:
14	14	1.14 (1) the total number of applications for funding;
15	15	1.15 (2) the amount of funding requested;
16	16	1.16 (3) the amounts of funding awarded; and
17	17	1.17 (4) the number of housing units that are affected by funding awards, including the number
18	18	1.18of:
19	19	1.19 (i) newly constructed owner-occupied units;
20	20	1.20 (ii) renovated owner-occupied units;
21	21	1.21 (iii) newly constructed rental units; and
22	22	1.22 (iv) renovated rental units.
23	23	1Section 1.
24	24	REVISOR MS/ES 25-0459103/12/25
25	25	State of Minnesota
26	26	This Document can be made available
27	27	in alternative formats upon request
28	28	HOUSE OF REPRESENTATIVES
29	29	H. F. No. 2740
30	30	NINETY-FOURTH SESSION
31	31	Authored by Howard and Momanyi-Hiltsley03/24/2025
32	32	The bill was read for the first time and referred to the Committee on Housing Finance and Policy 2.1 (b) This reporting requirement applies to appropriations for competitive development
33	33	2.2programs made in Laws 2023 and in subsequent laws.
34	34	2.3 (c) By January 5 each year, the commissioner must report on the financial stability of
35	35	2.4the affordable housing industry. The report must include:
36	36	2.5 (1) the ratio of operating expenses to revenue in affordable rental housing projects; and
37	37	2.6 (2) the percent of rents collected on time, divided into four regions of the state:
38	38	2.7 (i) the cities of St. Paul and Minneapolis;
39	39	2.8 (ii) the metropolitan counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
40	40	2.9Washington, except for the cities of St. Paul and Minneapolis;
41	41	2.10 (iii) urban greater Minnesota, including the cities of Duluth, Mankato, Moorhead,
42	42	2.11Rochester, and St. Cloud; and
43	43	2.12 (iv) rural greater Minnesota, which includes all of Minnesota, except for the places listed
44	44	2.13in items (i), (ii), and (iii).
45	45	2.14 Sec. 2. Minnesota Statutes 2024, section 462A.07, is amended by adding a subdivision to
46	46	2.15read:
47	47	2.16 Subd. 21.Local affordable housing aid annual meeting.At least once each year, the
48	48	2.17commissioner must convene a meeting with the Interagency Council to End Homelessness
49	49	2.18and the cities and counties receiving local affordable housing aid under section 477A.35.
50	50	2.19The purpose of the meeting is to discuss: (1) the impacts of local affordable housing aid;
51	51	2.20(2) regional needs for affordable housing; and (3) recommendations for the collaborative
52	52	2.21use of funds to effectively address homelessness, housing insecurity, security of affordable
53	53	2.22housing, and the lack of housing supply.
54	54	2.23 Sec. 3. Minnesota Statutes 2024, section 462A.222, is amended by adding a subdivision
55	55	2.24to read:
56	56	2.25 Subd. 5.Commitment restriction.The commissioner may not require commitment
57	57	2.26terms longer than the compliance period required under section 42 of the Internal Revenue
58	58	2.27Code of 1986, as amended.
59	59	2Sec. 3.
60	60	REVISOR MS/ES 25-0459103/12/25 3.1 Sec. 4. POLICY FRAMEWORK FOR TARGETED STABILIZATION OF
61	61	3.2REGULATED AFFORDABLE HOUSING.
62	62	3.3 (a) The commissioner of the Minnesota Housing Finance Agency must develop a policy
63	63	3.4framework for targeted stabilization of affordable rental housing. In developing this
64	64	3.5framework, the commissioner must identify strategies, tools, and funding mechanisms for
65	65	3.6targeted stabilization of affordable rental housing and recapitalization of distressed properties.
66	66	3.7The commissioner must identify potential improvements for regulatory relief for affordable
67	67	3.8rental housing providers and implement these improvements where feasible.
68	68	3.9 (b) By January 5, 2026, the commissioner must report to the chairs and ranking minority
69	69	3.10members of the legislative committees with jurisdiction over housing finance and policy
70	70	3.11on the policy framework, improvements implemented, and propose legislation that may be
71	71	3.12needed to support targeted stabilization of regulated affordable housing and recapitalization
72	72	3.13of distressed properties.
73	73	3.14 Sec. 5. INTERAGENCY STABILIZATION GROUP.
74	74	3.15 The commissioner of the Minnesota Housing Finance Agency may convene regular
75	75	3.16meetings of public funders and affordable housing stakeholders to seek funding solutions
76	76	3.17that support preservation and stabilization of affordable properties.
77	77	3.18 Sec. 6. TRANSFER; HOUSING DEVELOPMENT FUND.
78	78	3.19 $....... in fiscal year 2026 and $....... in fiscal year 2027 are transferred from the general
79	79	3.20fund to the housing development fund. This transfer is $....... in fiscal year 2028 and each
80	80	3.21year thereafter.
81	81	3.22 Sec. 7. APPROPRIATION; TARGETED STABILIZATION POLICY
82	82	3.23FRAMEWORK.
83	83	3.24 $....... in fiscal year 2026 is appropriated from the housing development fund to the
84	84	3.25commissioner of the Minnesota Housing Finance Agency to develop a policy framework
85	85	3.26for targeted stabilization of affordable rental housing. This is a onetime appropriation.
86	86	3Sec. 7.
87	87	REVISOR MS/ES 25-0459103/12/25