Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF2298 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		1.1 A bill for an act
2	2		1.2 relating to housing; establishing budget for Minnesota Housing Finance Agency;
3	3		1.3 making policy, finance, and technical changes to housing provisions; establishing
4		-	1.4 a task force on homeowners and commercial property insurance; removing certain
5		-	1.5 real property recording fees; transferring money; requiring a report; appropriating
6		-	1.6 money; amending Minnesota Statutes 2024, sections 327C.095, subdivision 12;
7		-	1.7 462A.051, subdivision 2; 462A.07, subdivision 19, by adding a subdivision;
8		-	1.8 462A.2095, subdivision 3; 462A.222, by adding a subdivision; 462A.33,
9		-	1.9 subdivisions 2, 9; 462A.40, subdivision 3; 507.18, subdivisions 5, 6; Laws 2023,
10		-	1.10 chapter 37, article 1, section 2, subdivisions 20, 21, 29, as amended; article 2,
11		-	1.11 section 10; proposing coding for new law in Minnesota Statutes, chapter 462A;
12		-	1.12 repealing Minnesota Statutes 2024, sections 16A.287; 462A.43.
13		-	1.13BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
14		-	1.14 ARTICLE 1
15		-	1.15 APPROPRIATIONS
16		-	1.16Section 1. APPROPRIATIONS.
17		-	1.17 The sums shown in the columns marked "Appropriations" are appropriated to the agency
18		-	1.18for the purposes specified in this article. The appropriations are from the general fund, or
19		-	1.19another named fund, and are available for the fiscal years indicated for each purpose. The
20		-	1.20figures "2026" and "2027" used in this article mean that the appropriations listed under them
21		-	1.21are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively. "The
22		-	1.22first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium" is
23		-	1.23fiscal years 2026 and 2027.
24		-	1.24 APPROPRIATIONS
25		-	1.25 Available for the Year
26		-	1.26 Ending June 30
27		-	20271.27 2026
	4	+	1.4 a task force on homeowners and commercial property insurance; transferring
	5	+	1.5 money; requiring a report; appropriating money; amending Minnesota Statutes
	6	+	1.6 2024, sections 327C.095, subdivision 12; 462A.051, subdivision 2; 462A.07,
	7	+	1.7 subdivision 19, by adding a subdivision; 462A.2095, subdivision 3; 462A.33,
	8	+	1.8 subdivisions 2, 9; 462A.40, subdivision 3; Laws 2023, chapter 37, article 1, section
	9	+	1.9 2, subdivisions 20, 21, 29, as amended; article 2, section 10; proposing coding for
	10	+	1.10 new law in Minnesota Statutes, chapter 462A; repealing Minnesota Statutes 2024,
	11	+	1.11 sections 16A.287; 462A.43.
	12	+	1.12BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
	13	+	1.13 ARTICLE 1
	14	+	1.14 APPROPRIATIONS
	15	+	1.15Section 1. APPROPRIATIONS.
	16	+	1.16 The sums shown in the columns marked "Appropriations" are appropriated to the agency
	17	+	1.17for the purposes specified in this article. The appropriations are from the general fund, or
	18	+	1.18another named fund, and are available for the fiscal years indicated for each purpose. The
	19	+	1.19figures "2026" and "2027" used in this article mean that the appropriations listed under them
	20	+	1.20are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively. "The
	21	+	1.21first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium" is
	22	+	1.22fiscal years 2026 and 2027.
	23	+	1.23 APPROPRIATIONS
	24	+	1.24 Available for the Year
	25	+	1.25 Ending June 30
	26	+	20271.26 2026
28	27		1Article 1 Section 1.
29		-	S2298-~~3 3rd~~ EngrossmentSF2298 REVISOR MS
	28	+	S2298-2 2nd EngrossmentSF2298 REVISOR MS
30	29		SENATE
31	30		STATE OF MINNESOTA
32	31		S.F. No. 2298NINETY-FOURTH SESSION
33	32		(SENATE AUTHORS: PORT, Boldon, Clark and Putnam)
34	33		OFFICIAL STATUSD-PGDATE
35	34		Introduction and first reading70103/10/2025
36	35		Referred to Housing and Homelessness Prevention
37	36		Comm report: To pass as amended and re-refer to Finance1425a04/07/2025
38		-	Comm report: To pass as amended1741a04/10/2025
39		-	Second reading1784
40		-	Special Order: Amended3722a04/22/2025
41		-	Third reading Passed as amended3728 2.1Sec. 2. HOUSING FINANCE AGENCY
	37	+	Comm report: To pass as amended04/10/2025
	38	+	Second reading 2.1Sec. 2. HOUSING FINANCE AGENCY
42	39		82,798,000$96,948,000$2.2Subdivision 1.Total Appropriation
43	40		2.3(a) The amounts that may be spent for each
44	41		2.4purpose are specified in the following
45	42		2.5subdivisions.
46	43		2.6(b) Unless otherwise specified, the
47	44		2.7appropriations for the programs in this section
48	45		2.8are appropriated and made available for the
49	46		2.9purposes of the housing development fund.
50	47		2.10Except as otherwise indicated, the amounts
51	48		2.11appropriated are part of the agency's
52	49		2.12permanent budget base.
53	50		2.13(c) Notwithstanding Minnesota Statutes,
54	51		2.14section 16B.98, subdivision 14, the
55	52		2.15commissioner must not use any amount of this
56	53		2.16total appropriation for administrative costs.
57	54		12,925,00012,925,0002.17Subd. 2.Challenge Program
58	55		2.18(a) This appropriation is for the economic
59	56		2.19development and housing challenge program
60	57		2.20under Minnesota Statutes, section 462A.33
61	58		2.21and 462A.07, subdivision 14.
62	59		2.22(b) Of this amount, $1,208,000 each year shall
63	60		2.23be made available during the first 11 months
64	61		2.24of the fiscal year exclusively for housing
65	62		2.25projects for American Indians. Any funds not
66	63		2.26committed to housing projects for American
67	64		2.27Indians within the annual consolidated request
68	65		2.28for funding processes may be available for
69	66		2.29any eligible activity under Minnesota Statutes,
70	67		2.30sections 462A.33 and 462A.07, subdivision
71	68		2.3114.
72	69		2Article 1 Sec. 2.
73		-	S2298-~~3 3rd~~ EngrossmentSF2298 REVISOR MS 2,000,0002,000,0003.1Subd. 3.Workforce Housing Development
	70	+	S2298-2 2nd EngrossmentSF2298 REVISOR MS 2,000,0002,000,0003.1Subd. 3.Workforce Housing Development
74	71		3.2This appropriation is for the Greater
75	72		3.3Minnesota workforce housing development
76	73		3.4program under Minnesota Statutes, section
77	74		3.5462A.39. If requested by the applicant and
78	75		3.6approved by the agency, funded properties
79	76		3.7may include a portion of income and rent
80	77		3.8restricted units. Funded properties may include
81	78		3.9owner-occupied homes.
82	79		1,000,0001,000,0003.10Subd. 4.Manufactured Home Park
83	80		3.11Infrastructure Grants
84	81		3.12This appropriation is for manufactured home
85	82		3.13park infrastructure grants under Minnesota
86	83		3.14Statutes, section 462A.2035, subdivision 1b.
87	84		250,000250,0003.15Subd. 5.Workforce Homeownership Program
88	85		3.16This appropriation is for the workforce
89	86		3.17homeownership program under Minnesota
90	87		3.18Statutes, section 462A.38.
91	88		23,000,00023,000,0003.19Subd. 6.Rent Assistance Program
92	89		3.20This appropriation is for the rent assistance
93	90		3.21program under Minnesota Statutes, section
94	91		3.22462A.2095.
95	92		11,646,00011,646,0003.23Subd. 7.Housing Trust Fund
96	93		3.24This appropriation is for deposit in the housing
97	94		3.25trust fund account created under Minnesota
98	95		3.26Statutes, section 462A.201, and may be used
99	96		3.27for the purposes provided in that section.
100	97		2,750,0002,750,0003.28Subd. 8.Homework Starts with Home
101	98		3.29This appropriation is for the homework starts
102	99		3.30with home program under Minnesota Statutes,
103	100		3.31sections 462A.201, subdivision 2, paragraph
104	101		3.32(a), clause (4), and 462A.204, subdivision 8,
105	102		3.33to provide assistance to homeless families,
106	103		3Article 1 Sec. 2.
107		-	S2298-~~3 3rd~~ EngrossmentSF2298 REVISOR MS 4.1those at risk of homelessness, or highly mobile
	104	+	S2298-2 2nd EngrossmentSF2298 REVISOR MS 4.1those at risk of homelessness, or highly mobile
108	105		4.2families.
109	106		5,338,0005,338,0004.3Subd. 9.Rental Assistance for Mentally Ill
110	107		4.4(a) This appropriation is for the rental housing
111	108		4.5assistance program for persons with a mental
112	109		4.6illness or families with an adult member with
113	110		4.7a mental illness under Minnesota Statutes,
114	111		4.8section 462A.2097. Among comparable
115	112		4.9proposals, the agency shall prioritize those
116	113		4.10proposals that target, in part, eligible persons
117	114		4.11who desire to move to more integrated,
118	115		4.12community-based settings.
119	116		4.13(b) Notwithstanding any law to the contrary,
120	117		4.14this appropriation may be used for risk
121	118		4.15mitigation funds, landlord incentives, or other
122	119		4.16costs necessary to decrease the risk of
123	120		4.17homelessness, as determined by the agency.
124	121		10,269,00020,419,0004.18Subd. 10.Family Homeless Prevention
125	122		4.19(a) This appropriation is for the family
126	123		4.20homeless prevention and assistance program
127	124		4.21under Minnesota Statutes, section 462A.204.
128	125		4.22(b) Notwithstanding any law to the contrary,
129	126		4.23this appropriation may be used for program
130	127		4.24costs necessary to decrease the risk of
131	128		4.25homelessness and improve the effectiveness
132	129		4.26of the program, as determined by the agency.
133	130		4.27(c) When a new grantee works with a current
134	131		4.28or former grantee in a given geographic area,
135	132		4.29a new grantee may work with either an
136	133		4.30advisory committee as required under
137	134		4.31Minnesota Statutes, section 462A.204,
138	135		4.32subdivision 6, or the local continuum of care
139	136		4.33and is not required to meet the requirements
140	137		4Article 1 Sec. 2.
141		-	S2298-~~3 3rd~~ EngrossmentSF2298 REVISOR MS 5.1of Minnesota Statutes, section 462A.204,
	138	+	S2298-2 2nd EngrossmentSF2298 REVISOR MS 5.1of Minnesota Statutes, section 462A.204,
142	139		5.2subdivision 4.
143	140		885,000885,0005.3Subd. 11.Home Ownership Assistance Fund
144	141		5.4This appropriation is for the home ownership
145	142		5.5assistance program under Minnesota Statutes,
146	143		5.6section 462A.21, subdivision 8. The agency
147	144		5.7shall continue to strengthen its efforts to
148	145		5.8address the disparity gap in the
149	146		5.9homeownership rate between white
150	147		5.10households and indigenous American Indians
151	148		5.11and communities of color. To better
152	149		5.12understand and address the disparity gap, the
153	150		5.13agency is required to collect, on a voluntary
154	151		5.14basis, demographic information regarding
155	152		5.15race, color, national origin, and sex of
156	153		5.16applicants for agency programs intended to
157	154		5.17benefit homeowners and homebuyers.
158	155		4,218,0004,218,0005.18Subd. 12.Affordable Rental Investment Fund
159	156		5.19(a) This appropriation is for the affordable
160	157		5.20rental investment fund program under
161	158		5.21Minnesota Statutes, section 462A.21,
162	159		5.22subdivision 8b, to finance the acquisition,
163	160		5.23rehabilitation, and debt restructuring of
164	161		5.24federally assisted rental property and for
165	162		5.25making equity take-out loans under Minnesota
166	163		5.26Statutes, section 462A.05, subdivision 39.
167	164		5.27(b) The owner of federally assisted rental
168	165		5.28property must agree to participate in the
169	166		5.29applicable federally assisted housing program
170	167		5.30and to extend any existing low-income
171	168		5.31affordability restrictions on the housing for
172	169		5.32the maximum term permitted.
173	170		5.33(c) The appropriation also may be used to
174	171		5.34finance the acquisition, rehabilitation, and debt
175	172		5Article 1 Sec. 2.
176		-	S2298-~~3 3rd~~ EngrossmentSF2298 REVISOR MS 6.1restructuring of existing supportive housing
	173	+	S2298-2 2nd EngrossmentSF2298 REVISOR MS 6.1restructuring of existing supportive housing
177	174		6.2properties and naturally occurring affordable
178	175		6.3housing as determined by the commissioner.
179	176		6.4For purposes of this paragraph, "supportive
180	177		6.5housing" means affordable rental housing with
181	178		6.6links to services necessary for individuals,
182	179		6.7youth, and families with children to maintain
183	180		6.8housing stability.
184	181		2,772,0002,772,000
185	182		6.9Subd. 13.Owner-Occupied Housing
186	183		6.10Rehabilitation
187	184		6.11(a) This appropriation is for the rehabilitation
188	185		6.12of owner-occupied housing under Minnesota
189	186		6.13Statutes, section 462A.05, subdivisions 14 and
190	187		6.1414a.
191	188		6.15(b) Notwithstanding any law to the contrary,
192	189		6.16grants or loans under this subdivision may be
193	190		6.17made without rent or income restrictions of
194	191		6.18owners or tenants. To the extent practicable,
195	192		6.19grants or loans must be made available
196	193		6.20statewide.
197	194		3,743,0003,743,0006.21Subd. 14.Rental Housing Rehabilitation
198	195		6.22(a) This appropriation is for the rehabilitation
199	196		6.23of eligible rental housing under Minnesota
200	197		6.24Statutes, section 462A.05, subdivision 14. In
201	198		6.25administering a rehabilitation program for
202	199		6.26rental housing, the agency may apply the
203	200		6.27processes and priorities adopted for
204	201		6.28administration of the economic development
205	202		6.29and housing challenge program under
206	203		6.30Minnesota Statutes, section 462A.33, and may
207	204		6.31provide grants or forgivable loans if approved
208	205		6.32by the agency.
209	206		6.33(b) Notwithstanding any law to the contrary,
210	207		6.34grants or loans under this subdivision may be
211	208		6.35made without rent or income restrictions of
212	209		6Article 1 Sec. 2.
213		-	S2298-~~3 3rd~~ EngrossmentSF2298 REVISOR MS 7.1owners or tenants. To the extent practicable,
	210	+	S2298-2 2nd EngrossmentSF2298 REVISOR MS 7.1owners or tenants. To the extent practicable,
214	211		7.2grants or loans must be made available
215	212		7.3statewide.
216	213		857,000857,0007.4Subd. 15.Homeownership Education,
217	214		7.5Counseling, and Training
218	215		7.6This appropriation is for the homeownership
219	216		7.7education, counseling, and training program
220	217		7.8under Minnesota Statutes, section 462A.209.
221	218		645,000645,0007.9Subd. 16.Capacity Building Grants
222	219		7.10This appropriation is for capacity building
223	220		7.11grants under Minnesota Statutes, section
224	221		7.12462A.21, subdivision 3b.
225	222		500,000500,0007.13Subd. 17.Build Wealth MN
226	223		7.14This appropriation is for a grant to Build
227	224		7.15Wealth Minnesota to provide a family
228	225		7.16stabilization plan program including program
229	226		7.17outreach, financial literacy education, and
230	227		7.18budget and debt counseling.
231	228		-0-2,000,000
232	229		7.19Subd. 18.Greater Minnesota Housing
233	230		7.20Infrastructure Grant Program
234	231		7.21This appropriation is for the greater Minnesota
235	232		7.22housing infrastructure grant program under
236	233		7.23Minnesota Statutes, section 462A.395. The
237	234		7.24base for this appropriation is $500,000 in fiscal
238	235		7.25year 2028 and each year thereafter.
239	236		-0-2,000,000
240	237		7.26Subd. 19.Community-Based First-Generation
241	238		7.27Homebuyers Down Payment Assistance
242	239		7.28Program
243	240		7.29This appropriation is for a grant to Midwest
244	241		7.30Minnesota Community Development
245	242		7.31Corporation (MMCDC), through its wholly
246	243		7.32owned subsidiary CDC Investments, Inc., for
247	244		7.33the community-based first-generation
248	245		7.34homebuyers down payment assistance
249	246		7Article 1 Sec. 2.
250		-	S2298-~~3 3rd~~ EngrossmentSF2298 REVISOR MS 8.1program under Minnesota Statutes, section
	247	+	S2298-2 2nd EngrossmentSF2298 REVISOR MS 8.1program under Minnesota Statutes, section
251	248		8.2462A.415. At the end of each biennium,
252	249		8.3MMCDC must remit any unused funds to the
253	250		8.4Minnesota Housing Finance Agency. Funds
254	251		8.5remitted to the agency under this subdivision
255	252		8.6are appropriated to the agency to administer
256	253		8.7the workforce and affordable homeownership
257	254		8.8development program under Minnesota
258	255		8.9Statutes, section 462A.38. The base for this
259	256		8.10appropriation is $450,000 in fiscal year 2028
260	257		8.11and each year thereafter.
261	258		8.12Subd. 20.Availability and Transfer of Funds
262	259		8.13Money appropriated in the first year in this
263	260		8.14article is available the second year. The
264	261		8.15commissioner may shift or transfer money in
265	262		8.16the second year in subdivisions 2, 3, 4, 5, 12,
266	263		8.1713, and 14 to address high-priority housing
267	264		8.18needs.
268	265		-0-$200,000$
269	266		8.19Sec. 3. LEGISLATIVE COORDINATING
270	267		8.20COMMISSION
271	268		8.21$200,000 the first year is to provide
272	269		8.22administrative support to the Task Force on
273	270		8.23Homeowners and Commercial Property
274		-	8.24Insurance established in article 2, section 18.
	271	+	8.24Insurance established in article 2, section 13.
275	272		8.25This is a onetime appropriation.
276	273		8.26 Sec. 4. Laws 2023, chapter 37, article 1, section 2, subdivision 29, as amended by Laws
277	274		8.272024, chapter 127, article 14, section 11, is amended to read:
278	275		8.28 70,000,000
279	276		60,000,00045,000,0008.29Subd. 29.Community Stabilization
280	277		8.30(a) This appropriation is for the community
281	278		8.31stabilization program. This a onetime
282	279		8.32appropriation.
283	280		8.33(b) The first year and second year
284	281		8.34appropriations are available as follows:
285	282		8Article 1 Sec. 4.
286		-	S2298-~~3 3rd~~ EngrossmentSF2298 REVISOR MS 9.1(1) $10,000,000 is for a grant to AEON for
	283	+	S2298-2 2nd EngrossmentSF2298 REVISOR MS 9.1(1) $10,000,000 is for a grant to AEON for
287	284		9.2Huntington Place;
288	285		9.3(2) notwithstanding Minnesota Statutes,
289	286		9.4sections 16B.98, subdivisions 5 and 12, and
290	287		9.516B.981, subdivision 2, $3,250,000 is for a
291	288		9.6grant to the Wilder Park Association to assist
292	289		9.7with the cost of a major capital repair project
293	290		9.8for the rehabilitation of portions of the
294	291		9.9owner-occupied senior high-rise facility. The
295	292		9.10grantee must verify that 50 percent of units
296	293		9.11are occupied by households with incomes at
297	294		9.12or below 60 percent of area median income;
298	295		9.13(3) $41,750,000 is for multiunit rental housing;
299	296		9.14and
300	297		9.15(4) $10,000,000 is for single-family housing;
301	298		9.16and
302	299		9.17(5) (4) $50,000,000 is for recapitalization of
303	300		9.18distressed buildings. Of this amount, up to
304	301		9.19$15,000,000 is for preservation or
305	302		9.20recapitalization of housing that includes
306	303		9.21supportive housing.
307	304		9.22(c) Notwithstanding Minnesota Statutes,
308	305		9.23section 16B.98, subdivision 14, the
309	306		9.24commissioner may use up to one percent of
310	307		9.25this appropriation for administrative costs for
311	308		9.26the grants in paragraph (b), clauses (1) and
312	309		9.27(2). This is a onetime appropriation.
313	310		9.28 EFFECTIVE DATE.This section is effective the day following final enactment.
314	311		9.29 Sec. 5. TRANSFER; HOUSING SUPPORT ACCOUNT.
315	312		9.30 The commissioner of management and budget must transfer any unencumbered balance
316	313		9.31from the housing support account under Minnesota Statutes, section 462A.43, to the general
317	314		9.32fund by June 15, 2025.
318	315		9.33 EFFECTIVE DATE.This section is effective the day following final enactment.
319	316		9Article 1 Sec. 5.
320		-	S2298-~~3 3rd~~ EngrossmentSF2298 REVISOR MS 10.1 Sec. 6. REPEALER.
	317	+	S2298-2 2nd EngrossmentSF2298 REVISOR MS 10.1 Sec. 6. REPEALER.
321	318		10.2 (a) Minnesota Statutes 2024, section 16A.287, is repealed.
322	319		10.3 (b) Minnesota Statutes 2024, section 462A.43, is repealed.
323	320		10.4 EFFECTIVE DATE.Paragraph (a) is effective the day following final enactment.
324	321		10.5 ARTICLE 2
325	322		10.6 POLICY
326	323		10.7 Section 1. Minnesota Statutes 2024, section 327C.095, subdivision 12, is amended to read:
327	324		10.8 Subd. 12.Payment to the Minnesota manufactured home relocation trust fund.(a)
328	325		10.9If a manufactured home owner is required to move due to the conversion of all or a portion
329	326		10.10of a manufactured home park to another use, the closure of a park, or cessation of use of
330	327		10.11the land as a manufactured home park, the manufactured park owner shall, upon the change
331	328		10.12in use, pay to the Minnesota Housing Finance Agency for deposit in the Minnesota
332	329		10.13manufactured home relocation trust fund under section 462A.35, the lesser amount of the
333	330		10.14actual costs of moving or purchasing the manufactured home approved by the neutral third
334	331		10.15party and paid by the Minnesota Housing Finance Agency under subdivision 13, paragraph
335	332		10.16(a) or (e), or $3,250 for each single section manufactured home, and $6,000 for each
336	333		10.17multisection manufactured home, for which a manufactured home owner has made
337	334		10.18application for payment of relocation costs under subdivision 13, paragraph (c). The
338	335		10.19manufactured home park owner shall make payments required under this section to the
339	336		10.20Minnesota manufactured home relocation trust fund within 60 days of receipt of invoice
340	337		10.21from the neutral third party.
341	338		10.22 (b) A manufactured home park owner is not required to make the payment prescribed
342	339		10.23under paragraph (a), nor is a manufactured home owner entitled to compensation under
343	340		10.24subdivision 13, paragraph (a) or (e), if:
344	341		10.25 (1) the manufactured home park owner relocates the manufactured home owner to
345	342		10.26another space in the manufactured home park or to another manufactured home park at the
346	343		10.27park owner's expense;
347	344		10.28 (2) the manufactured home owner is vacating the premises and has informed the
348	345		10.29manufactured home park owner or manager of this prior to the mailing date of the closure
349	346		10.30statement under subdivision 1;
350	347		10.31 (3) a manufactured home owner has abandoned the manufactured home, or the
351	348		10.32manufactured home owner is not current on the monthly lot rental, personal property taxes;
352	349		10Article 2 Section 1.
353		-	S2298-~~3 3rd~~ EngrossmentSF2298 REVISOR MS 11.1 (4) the manufactured home owner has a pending eviction action for nonpayment of lot
	350	+	S2298-2 2nd EngrossmentSF2298 REVISOR MS 11.1 (4) the manufactured home owner has a pending eviction action for nonpayment of lot
354	351		11.2rental amount under section 327C.09, which was filed against the manufactured home owner
355	352		11.3prior to the mailing date of the closure statement under subdivision 1, and the writ of recovery
356	353		11.4has been ordered by the district court;
357	354		11.5 (5) the conversion of all or a portion of a manufactured home park to another use, the
358	355		11.6closure of a park, or cessation of use of the land as a manufactured home park is the result
359	356		11.7of a taking or exercise of the power of eminent domain by a governmental entity or public
360	357		11.8utility; or
361	358		11.9 (6) the owner of the manufactured home is not a resident of the manufactured home
362	359		11.10park, as defined in section 327C.015, subdivision 14; the owner of the manufactured home
363	360		11.11is a resident, but came to reside in the manufactured home park after the mailing date of
364	361		11.12the closure statement under subdivision 1; or the owner of the manufactured home has not
365	362		11.13paid the $15 assessment when due under paragraph (c).
366	363		11.14 (c) If the unencumbered fund balance in the manufactured home relocation trust fund
367	364		11.15is less than $2,000,000 as of June 30 of each year, the Minnesota Housing Finance Agency
368	365		11.16shall assess each manufactured home park owner by mail the total amount of $15 for each
369	366		11.17licensed lot in their park, payable on or before December 15 of that year. Failure to notify
370	367		11.18and timely assess the manufactured home park owner by July 31 of any year shall waive
371	368		11.19the assessment and payment obligations of the manufactured home park owner for that year.
372	369		11.20Together with said assessment notice, each year the Minnesota Housing Finance Agency
373	370		11.21shall prepare and distribute to park owners a letter explaining whether funds are being
374	371		11.22collected for that year, information about the collection, an invoice for all licensed lots, a
375	372		11.23notice for distribution to the residents, and a sample form for the park owners to collect
376	373		11.24information on which park residents and lots have been accounted for. The agency must
377	374		11.25also include information in the letter about the tax credit available for sales of manufactured
378	375		11.26home parks to cooperatives in section 290.0694 and about notice requirements for unsolicited
379	376		11.27sales in section 327C.097. The agency may include additional information in the letter about
380	377		11.28programs and resources available to manufactured home park residents and owners. In a
381	378		11.29font no smaller than 14-point, the notice provided by the Minnesota Housing Finance Agency
382	379		11.30for distribution to residents by the park owner will include the payment deadline of October
383	380		11.3131 and the following language: "THIS IS NOT AN OPTIONAL FEE. IF YOU OWN A
384	381		11.32MANUFACTURED HOME ON A LOT YOU RENT IN A MANUFACTURED HOME
385	382		11.33PARK, AND YOU RESIDE IN THAT HOME, YOU MUST PAY WHEN PROVIDED
386	383		11.34NOTICE." If assessed under this paragraph, the park owner may recoup the cost of the $15
387	384		11.35assessment as a lump sum or as a monthly fee of no more than $1.25 collected from park
388	385		11Article 2 Section 1.
389		-	S2298-~~3 3rd~~ EngrossmentSF2298 REVISOR MS 12.1residents together with monthly lot rent as provided in section 327C.03, subdivision 6. If,
	386	+	S2298-2 2nd EngrossmentSF2298 REVISOR MS 12.1residents together with monthly lot rent as provided in section 327C.03, subdivision 6. If,
390	387		12.2by September 15, a park owner provides the notice to residents for the $15 lump sum, a
391	388		12.3park owner may adjust payment for lots in their park that are vacant or otherwise not eligible
392	389		12.4for contribution to the trust fund under section 327C.095, subdivision 12, paragraph (b),
393	390		12.5and for park residents who have not paid the $15 assessment when due to the park owner
394	391		12.6by October 31, and deduct from the assessment accordingly. The Minnesota Housing Finance
395	392		12.7Agency shall deposit any payments in the Minnesota manufactured home relocation trust
396	393		12.8fund and maintain an annual record for each manufactured home park of the amount received
397	394		12.9for that park and the number of deductions made for each of the following reasons: vacant
398	395		12.10lots, ineligible lots, and uncollected fees.
399	396		12.11 (d) This subdivision and subdivision 13, paragraph (c), clause (5), are enforceable by
400	397		12.12the neutral third party, on behalf of the Minnesota Housing Finance Agency, or by action
401	398		12.13in a court of appropriate jurisdiction. The court may award a prevailing party reasonable
402	399		12.14attorney fees, court costs, and disbursements.
403	400		12.15Sec. 2. Minnesota Statutes 2024, section 462A.051, subdivision 2, is amended to read:
404	401		12.16 Subd. 2.Application.This section applies to all forms of financial assistance provided
405	402		12.17by the Minnesota Housing Finance Agency, as well as the allocation and award of federal
406	403		12.18low-income housing credits by all allocating agencies as defined under section 462A.221,
407	404		12.19for the development, construction, rehabilitation, renovation, or retrofitting of multiunit
408	405		12.20residential multifamily housing, including loans, grants, tax credits, loan guarantees, loan
409	406		12.21insurance, and other financial assistance.
410	407		12.22Sec. 3. Minnesota Statutes 2024, section 462A.07, subdivision 19, is amended to read:
411	408		12.23 Subd. 19.Report to the legislature.(a) By February 15 each year, the commissioner
412	409		12.24must submit a report to the chairs and ranking minority members of the legislative committees
413	410		12.25having jurisdiction over housing finance and policy containing the following information:
414	411		12.26 (1) the total number of applications for funding;
415	412		12.27 (2) the amount of funding requested;
416	413		12.28 (3) the amounts of funding awarded; and
417	414		12.29 (4) the number of housing units that are affected by funding awards, including the number
418	415		12.30of:
419	416		12.31 (i) newly constructed owner-occupied units;
420	417		12Article 2 Sec. 3.
421		-	S2298-~~3 3rd~~ EngrossmentSF2298 REVISOR MS 13.1 (ii) renovated owner-occupied units;
	418	+	S2298-2 2nd EngrossmentSF2298 REVISOR MS 13.1 (ii) renovated owner-occupied units;
422	419		13.2 (iii) newly constructed rental units; and
423	420		13.3 (iv) renovated rental units.
424	421		13.4 (b) This reporting requirement applies to appropriations for competitive development
425	422		13.5programs made in Laws 2023 and in subsequent laws.
426	423		13.6 (c) By January 5 each year, the commissioner must report on the financial stability of
427	424		13.7the affordable housing industry. The report must include:
428	425		13.8 (1) the ratio of operating expenses to revenue in affordable rental housing projects; and
429	426		13.9 (2) the percent of rents collected on time, divided into four regions of the state:
430	427		13.10 (i) the cities of St. Paul and Minneapolis;
431	428		13.11 (ii) the metropolitan counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
432	429		13.12Washington, except for the cities of St. Paul and Minneapolis;
433	430		13.13 (iii) urban greater Minnesota, including the cities of Duluth, Mankato, Moorhead,
434	431		13.14Rochester, and St. Cloud; and
435	432		13.15 (iv) rural greater Minnesota, which includes all of Minnesota except for the places listed
436	433		13.16in items (i), (ii), and (iii).
437	434		13.17Sec. 4. Minnesota Statutes 2024, section 462A.07, is amended by adding a subdivision to
438	435		13.18read:
439	436		13.19 Subd. 21.Affordable housing annual meeting.At least once each year, the
440	437		13.20commissioner must convene a meeting with the Interagency Council to End Homelessness
441	438		13.21and the cities and counties with high levels of cost-burdened households, meaning the cities
442	439		13.22and counties where gross rent or homeownership costs are 30 percent or more of household
443	440		13.23income. The purpose of the meeting is to discuss:
444	441		13.24 (1) resources received by cities and counties;
445	442		13.25 (2) regional needs for affordable housing; and
446	443		13.26 (3) recommendations for the collaborative use of funds to effectively address
447	444		13.27homelessness, housing insecurity, security of affordable housing, and the lack of housing
448	445		13.28supply.
449	446		13Article 2 Sec. 4.
450		-	S2298-~~3 3rd~~ EngrossmentSF2298 REVISOR MS 14.1 Sec. 5. Minnesota Statutes 2024, section 462A.2095, subdivision 3, is amended to read:
	447	+	S2298-2 2nd EngrossmentSF2298 REVISOR MS 14.1 Sec. 5. Minnesota Statutes 2024, section 462A.2095, subdivision 3, is amended to read:
451	448		14.2 Subd. 3.Grants to program administrators.(a) The agency may make grants to
452	449		14.3program administrators to provide rental assistance for eligible households. Notwithstanding
453	450		14.4section 16C.06, the commissioner may use a formula to determine award amounts to program
454	451		14.5administrators. For both tenant-based and project-based assistance, program administrators
455	452		14.6shall pay assistance directly to housing providers. Rental assistance may be provided in the
456	453		14.7form of tenant-based assistance or project-based assistance. Notwithstanding the amounts
457	454		14.8awarded under subdivision 1, paragraph (b), and to the extent practicable, the agency must
458	455		14.9make grants statewide in proportion to the number of households eligible for assistance in
459	456		14.10each county according to the most recent American Community Survey of the United States
460	457		14.11Census Bureau. The agency may, at its discretion, redistribute unused or underutilized
461	458		14.12money among eligible program administrators to increase program efficiency and
462	459		14.13effectiveness.
463	460		14.14 (b) The program administrator may use its existing procedures to administer the rent
464	461		14.15assistance program or may develop alternative procedures with the goals of reaching
465	462		14.16households most in need and incentivizing landlord participation. The agency must approve
466	463		14.17a program administrator's alternative procedures. Priority for rental assistance shall be given
467	464		14.18to households with children 18 years of age and under, and annual incomes of up to 30
468	465		14.19percent of the area median income. Program administrators may establish additional priority
469	466		14.20populations based on local need.
470		-	14.21Sec. 6. Minnesota Statutes 2024, section 462A.222, is amended by adding a subdivision
471		-	14.22to read:
472		-	14.23 Subd. 5.Limitation on rental increases.A project awarded tax credits under this section
473		-	14.24must not increase rent in any 12-month period by a percentage exceeding the lesser of:
474		-	14.25 (1) the percent change in the Consumer Price Index for all urban consumers, as published
475		-	14.26by the Bureau of Labor Statistics of the Department of Labor, for the most recent 12-month
476		-	14.27period; or
477		-	14.28 (2) the percent change in the area median income levels for a household size of four
478		-	14.29between the current and previous calendar years.
479		-	14.30 EFFECTIVE DATE.This section is effective August 1, 2025, and applies to rent
480		-	14.31increases that take effect on or after that date.
481		-	14Article 2 Sec. 6.
482		-	S2298-3 3rd EngrossmentSF2298 REVISOR MS 15.1 Sec. 7. Minnesota Statutes 2024, section 462A.33, subdivision 2, is amended to read:
483		-	15.2 Subd. 2.Eligible recipients.Challenge grants or loans may be made to a city,; a federally
484		-	15.3recognized American Indian Tribe or subdivision located in Minnesota,; a Tribal housing
485		-	15.4corporation,; a private developer,; a nonprofit organization,; a school district,; a cooperative
486		-	15.5unit, as defined in section 123A.24, subdivision 2,; a charter school,; a contract alternative
487		-	15.6school; a Tribal contract school; or the owner of the housing, including individuals. For the
488		-	15.7purpose of this section, "city" has the meaning given it in section 462A.03, subdivision 21.
489		-	15.8To the extent practicable, grants and loans shall be made so that an approximately equal
490		-	15.9number of housing units are financed in the metropolitan area and in the nonmetropolitan
491		-	15.10area.
492		-	15.11Sec. 8. Minnesota Statutes 2024, section 462A.33, subdivision 9, is amended to read:
493		-	15.12 Subd. 9.Grant funding to schools.A school district; a cooperative unit, as defined in
494		-	15.13section 123A.24, subdivision 2; or a charter school; a contract alternative school; or a Tribal
495		-	15.14contract school may receive funding under this section in the form of a grant less than
496		-	15.15$100,000. A school district,; intermediate district, or; charter school; contract alternative
497		-	15.16school; or Tribal contract school that uses a grant under this section to construct a home for
498		-	15.17owner occupancy must require the future occupant to participate in the homeownership
499		-	15.18education counseling and training program under section 462A.209.
500		-	15.19Sec. 9. Minnesota Statutes 2024, section 462A.40, subdivision 3, is amended to read:
501		-	15.20 Subd. 3.Eligible recipients; definitions; restrictions; use of funds.(a) The agency
502		-	15.21may award a grant or a loan to any recipient that qualifies under subdivision 2. The agency
503		-	15.22must not award a grant or a loan to a disqualified individual or disqualified business.
504		-	15.23 (b) For the purposes of this subdivision disqualified individual means:
505		-	15.24 (1) an individual who or an individual whose immediate family member made a
506		-	15.25contribution to the account in the current or prior taxable year and received a credit certificate;
507		-	15.26 (2) an individual who or an individual whose immediate family member owns the housing
508		-	15.27for which the grant or loan will be used;
509		-	15.28 (3) an individual who meets the following criteria:
510		-	15.29 (i) the individual is an officer or principal of a business entity; and
511		-	15.30 (ii) that business entity made a contribution to the account in the current or previous
512		-	15.31taxable year and received a credit certificate; or
513		-	15Article 2 Sec. 9.
514		-	S2298-3 3rd EngrossmentSF2298 REVISOR MS 16.1 (4) an individual who meets the following criteria:
515		-	16.2 (i) the individual directly owns, controls, or holds the power to vote 20 percent or more
516		-	16.3of the outstanding securities of a business entity; and
517		-	16.4 (ii) that business entity made a contribution to the account in the current or previous
518		-	16.5taxable year and received a credit certificate.
519		-	16.6 (c) For the purposes of this subdivision disqualified business means a business entity
520		-	16.7that:
521		-	16.8 (1) made a contribution to the account in the current or prior taxable year and received
522		-	16.9a credit certificate;
523		-	16.10 (2) has an officer or principal who is an individual who made a contribution to the
524		-	16.11account in the current or previous taxable year and received a credit certificate; or
525		-	16.12 (3) meets the following criteria:
526		-	16.13 (i) the business entity is directly owned, controlled, or is subject to the power to vote 20
527		-	16.14percent or more of the outstanding securities by an individual or business entity; and
528		-	16.15 (ii) that controlling individual or business entity made a contribution to the account in
529		-	16.16the current or previous taxable year and received a credit certificate.
530		-	16.17 (d) For purposes of this subdivision, "immediate family" means the taxpayer's spouse,
531		-	16.18parent or parent's spouse, sibling or sibling's spouse, or child or child's spouse. For a married
532		-	16.19couple filing a joint return, the limitations in this subdivision apply collectively to the
533		-	16.20taxpayer and spouse.
534		-	16.21 (e) For purposes of this subdivision, "officer or principal" excludes an individual serving
535		-	16.22as a volunteer board member of a nonprofit organization governed by chapter 317A.
536		-	16.23 (e) (f) Before applying for a grant or loan, all recipients must sign a disclosure that the
537		-	16.24disqualifications under this subdivision do not apply. The Minnesota Housing Finance
538		-	16.25Agency must prescribe the form of the disclosure. The Minnesota Housing Finance Agency
539		-	16.26may rely on the disclosure to determine the eligibility of recipients under paragraph (a).
540		-	16.27 (f) (g) The agency may award grants or loans to a city as defined in section 462A.03,
541		-	16.28subdivision 21; a federally recognized American Indian tribe or subdivision located in
542		-	16.29Minnesota; a tribal housing corporation; a private developer; a nonprofit organization; a
543		-	16.30housing and redevelopment authority under sections 469.001 to 469.047; a public housing
544		-	16.31authority or agency authorized by law to exercise any of the powers granted by sections
545		-	16.32469.001 to 469.047; or the owner of the housing. The provisions of subdivision 2, and
	467	+	14.21Sec. 6. Minnesota Statutes 2024, section 462A.33, subdivision 2, is amended to read:
	468	+	14.22 Subd. 2.Eligible recipients.Challenge grants or loans may be made to a city,; a federally
	469	+	14.23recognized American Indian Tribe or subdivision located in Minnesota,; a Tribal housing
	470	+	14.24corporation,; a private developer,; a nonprofit organization,; a school district,; a cooperative
	471	+	14.25unit, as defined in section 123A.24, subdivision 2,; a charter school,; a contract alternative
	472	+	14.26school; a Tribal contract school; or the owner of the housing, including individuals. For the
	473	+	14.27purpose of this section, "city" has the meaning given it in section 462A.03, subdivision 21.
	474	+	14.28To the extent practicable, grants and loans shall be made so that an approximately equal
	475	+	14.29number of housing units are financed in the metropolitan area and in the nonmetropolitan
	476	+	14.30area.
	477	+	14.31Sec. 7. Minnesota Statutes 2024, section 462A.33, subdivision 9, is amended to read:
	478	+	14.32 Subd. 9.Grant funding to schools.A school district; a cooperative unit, as defined in
	479	+	14.33section 123A.24, subdivision 2; or a charter school; a contract alternative school; or a Tribal
	480	+	14Article 2 Sec. 7.
	481	+	S2298-2 2nd EngrossmentSF2298 REVISOR MS 15.1contract school may receive funding under this section in the form of a grant less than
	482	+	15.2$100,000. A school district,; intermediate district, or; charter school; contract alternative
	483	+	15.3school; or Tribal contract school that uses a grant under this section to construct a home for
	484	+	15.4owner occupancy must require the future occupant to participate in the homeownership
	485	+	15.5education counseling and training program under section 462A.209.
	486	+	15.6 Sec. 8. Minnesota Statutes 2024, section 462A.40, subdivision 3, is amended to read:
	487	+	15.7 Subd. 3.Eligible recipients; definitions; restrictions; use of funds.(a) The agency
	488	+	15.8may award a grant or a loan to any recipient that qualifies under subdivision 2. The agency
	489	+	15.9must not award a grant or a loan to a disqualified individual or disqualified business.
	490	+	15.10 (b) For the purposes of this subdivision disqualified individual means:
	491	+	15.11 (1) an individual who or an individual whose immediate family member made a
	492	+	15.12contribution to the account in the current or prior taxable year and received a credit certificate;
	493	+	15.13 (2) an individual who or an individual whose immediate family member owns the housing
	494	+	15.14for which the grant or loan will be used;
	495	+	15.15 (3) an individual who meets the following criteria:
	496	+	15.16 (i) the individual is an officer or principal of a business entity; and
	497	+	15.17 (ii) that business entity made a contribution to the account in the current or previous
	498	+	15.18taxable year and received a credit certificate; or
	499	+	15.19 (4) an individual who meets the following criteria:
	500	+	15.20 (i) the individual directly owns, controls, or holds the power to vote 20 percent or more
	501	+	15.21of the outstanding securities of a business entity; and
	502	+	15.22 (ii) that business entity made a contribution to the account in the current or previous
	503	+	15.23taxable year and received a credit certificate.
	504	+	15.24 (c) For the purposes of this subdivision disqualified business means a business entity
	505	+	15.25that:
	506	+	15.26 (1) made a contribution to the account in the current or prior taxable year and received
	507	+	15.27a credit certificate;
	508	+	15.28 (2) has an officer or principal who is an individual who made a contribution to the
	509	+	15.29account in the current or previous taxable year and received a credit certificate; or
	510	+	15.30 (3) meets the following criteria:
	511	+	15Article 2 Sec. 8.
	512	+	S2298-2 2nd EngrossmentSF2298 REVISOR MS 16.1 (i) the business entity is directly owned, controlled, or is subject to the power to vote 20
	513	+	16.2percent or more of the outstanding securities by an individual or business entity; and
	514	+	16.3 (ii) that controlling individual or business entity made a contribution to the account in
	515	+	16.4the current or previous taxable year and received a credit certificate.
	516	+	16.5 (d) For purposes of this subdivision, "immediate family" means the taxpayer's spouse,
	517	+	16.6parent or parent's spouse, sibling or sibling's spouse, or child or child's spouse. For a married
	518	+	16.7couple filing a joint return, the limitations in this subdivision apply collectively to the
	519	+	16.8taxpayer and spouse.
	520	+	16.9 (e) For purposes of this subdivision, "officer or principal" excludes an individual serving
	521	+	16.10as a volunteer board member of a nonprofit organization governed by chapter 317A.
	522	+	16.11 (e) (f) Before applying for a grant or loan, all recipients must sign a disclosure that the
	523	+	16.12disqualifications under this subdivision do not apply. The Minnesota Housing Finance
	524	+	16.13Agency must prescribe the form of the disclosure. The Minnesota Housing Finance Agency
	525	+	16.14may rely on the disclosure to determine the eligibility of recipients under paragraph (a).
	526	+	16.15 (f) (g) The agency may award grants or loans to a city as defined in section 462A.03,
	527	+	16.16subdivision 21; a federally recognized American Indian tribe or subdivision located in
	528	+	16.17Minnesota; a tribal housing corporation; a private developer; a nonprofit organization; a
	529	+	16.18housing and redevelopment authority under sections 469.001 to 469.047; a public housing
	530	+	16.19authority or agency authorized by law to exercise any of the powers granted by sections
	531	+	16.20469.001 to 469.047; or the owner of the housing. The provisions of subdivision 2, and
	532	+	16.21paragraphs (a) to (e) (f) and (g) (h) of this subdivision, regarding the use of funds and eligible
	533	+	16.22recipients apply to grants and loans awarded under this paragraph.
	534	+	16.23 (g) (h) Except for projects receiving funding under section 462A.39, eligible recipients
	535	+	16.24must use the funds to serve households that meet the income limits as provided in section
	536	+	16.25462A.33, subdivision 5.
	537	+	16.26Sec. 9. [462A.415] COMMUNITY-BASED FIRST-GENERATION HOMEBUYERS
	538	+	16.27DOWN PAYMENT ASSISTANCE PROGRAM.
	539	+	16.28 Subdivision 1.Establishment.A community-based first-generation homebuyers down
	540	+	16.29payment assistance program is established as a noncompetitive program under the
	541	+	16.30administration of a community development financial institution (CDFI) as defined under
	542	+	16.31the Riegle Community Development and Regulatory Improvement Act of 1994 to provide
	543	+	16.32targeted assistance to eligible homebuyers.
546	544		16Article 2 Sec. 9.
547		-	S2298-3 3rd EngrossmentSF2298 REVISOR MS 17.1paragraphs (a) to (e) (f) and (g) (h) of this subdivision, regarding the use of funds and eligible
548		-	17.2recipients apply to grants and loans awarded under this paragraph.
549		-	17.3 (g) (h) Except for projects receiving funding under section 462A.39, eligible recipients
550		-	17.4must use the funds to serve households that meet the income limits as provided in section
551		-	17.5462A.33, subdivision 5.
552		-	17.6 Sec. 10. [462A.415] COMMUNITY-BASED FIRST-GENERATION HOMEBUYERS
553		-	17.7DOWN PAYMENT ASSISTANCE PROGRAM.
554		-	17.8 Subdivision 1.Establishment.A community-based first-generation homebuyers down
555		-	17.9payment assistance program is established as a noncompetitive program under the
556		-	17.10administration of a community development financial institution (CDFI) as defined under
557		-	17.11the Riegle Community Development and Regulatory Improvement Act of 1994 to provide
558		-	17.12targeted assistance to eligible homebuyers.
559		-	17.13 Subd. 2.Administration.The community-based first-generation homebuyers down
560		-	17.14payment assistance program is available statewide and shall be administered by a designated
561		-	17.15central CDFI. The administering CDFI may originate and service funds and authorize other
562		-	17.16CDFIs, Tribal entities, and nonprofit organizations administering down payment assistance
563		-	17.17to reserve, originate, fund, and service funds for eligible homebuyers. Administrative costs
564		-	17.18must not exceed ten percent of the fiscal year appropriation.
565		-	17.19 Subd. 3.Eligible homebuyer.For purposes of this section, "eligible homebuyer" means
566		-	17.20an adult person:
567		-	17.21 (1) whose income is at or below 100 percent of the statewide median income at the time
568		-	17.22of application;
569		-	17.23 (2) who is preapproved for a first mortgage loan; and
570		-	17.24 (3)(i) who either never owned a home or who owned a home but lost it due to foreclosure;
571		-	17.25and
572		-	17.26 (ii) whose parent or prior legal guardian either never owned a home or owned a home
573		-	17.27but lost it due to foreclosure.
574		-	17.28The eligible homebuyer must complete an approved homebuyer education course prior to
575		-	17.29signing a purchase agreement and, following the purchase of the home, must occupy it as
576		-	17.30their primary residence.
577		-	17.31 Subd. 4.Use of funds.Assistance under this section is limited to ten percent of the
578		-	17.32purchase price of a one unit or two unit home, not to exceed $32,000. Beginning in fiscal
579		-	17Article 2 Sec. 10.
580		-	S2298-3 3rd EngrossmentSF2298 REVISOR MS 18.1year 2027, the maximum amount of assistance may be increased to up to ten percent of the
581		-	18.2median home sales price as reported in the previous year's Minnesota Realtors Annual
582		-	18.3Report on the Minnesota Housing Market. Funds are reserved at the issuance of preapproval.
583		-	18.4Reservation of funds is not contingent on having an executed purchase agreement. The
584		-	18.5assistance must be provided in the form of a no-interest loan that is forgiven over five years,
585		-	18.6forgivable at a rate of 20 percent per year on the day after the anniversary date of the note,
586		-	18.7with the final 20 percent forgiven on the down payment assistance loan maturity date. There
587		-	18.8is no monthly pro rata or partial-year credit. The loan has no monthly payment and does
588		-	18.9not accrue interest. The prorated balance due is repayable if the property converts to
589		-	18.10nonowner occupancy, is sold, is subjected to an ineligible refinance, is subjected to an
590		-	18.11unauthorized transfer of title, or is subjected to a completed foreclosure action within the
591		-	18.12five-year loan term. Recapture can be waived in the event of financial or personal hardship.
592		-	18.13The administering CDFI may retain recaptured funds for assisting eligible homebuyers as
593		-	18.14provided in this section. Funds may be used for closing costs, down payment, or principal
594		-	18.15reduction. The eligible household may select any first mortgage lender or broker of their
595		-	18.16choice, provided that the funds are used in conjunction with a conforming first mortgage
596		-	18.17loan that is fully amortizing and meets the standards of a qualified mortgage or meets the
597		-	18.18minimum standards for exemption under Code of Federal Regulations, title 12, section
598		-	18.191026.43. Funds may be used in conjunction with other programs the eligible household may
599		-	18.20qualify for and the loan placed in any priority position.
600		-	18.21 Subd. 5.Report to legislature.By January 15 each year, the administering CDFI must
601		-	18.22report to the chairs and ranking minority members of the legislative committees with
602		-	18.23jurisdiction over housing finance and policy the following information:
603		-	18.24 (1) the number and amounts of loans closed;
604		-	18.25 (2) the mean and median loan amount;
605		-	18.26 (3) the number and amounts of loans issued by race or ethnic categories;
606		-	18.27 (4) the mean and median home purchase price;
607		-	18.28 (5) the interest rates and types of mortgages;
608		-	18.29 (6) the total amount returned to the fund;
609		-	18.30 (7) the number and amounts of loans issued by county;
610		-	18.31 (8) the number of each type of housing purchased, including but not limited to
611		-	18.32single-family houses, townhouses, condominiums, and manufactured housing; and
	545	+	S2298-2 2nd EngrossmentSF2298 REVISOR MS 17.1 Subd. 2.Administration.The community-based first-generation homebuyers down
	546	+	17.2payment assistance program is available statewide and shall be administered by a designated
	547	+	17.3central CDFI. The administering CDFI may originate and service funds and authorize other
	548	+	17.4CDFIs, Tribal entities, and nonprofit organizations administering down payment assistance
	549	+	17.5to reserve, originate, fund, and service funds for eligible homebuyers. Administrative costs
	550	+	17.6must not exceed ten percent of the fiscal year appropriation.
	551	+	17.7 Subd. 3.Eligible homebuyer.For purposes of this section, "eligible homebuyer" means
	552	+	17.8an adult person:
	553	+	17.9 (1) whose income is at or below 100 percent of the statewide median income at the time
	554	+	17.10of application;
	555	+	17.11 (2) who is preapproved for a first mortgage loan; and
	556	+	17.12 (3)(i) who either never owned a home or who owned a home but lost it due to foreclosure;
	557	+	17.13and
	558	+	17.14 (ii) whose parent or prior legal guardian either never owned a home or owned a home
	559	+	17.15but lost it due to foreclosure.
	560	+	17.16The eligible homebuyer must complete an approved homebuyer education course prior to
	561	+	17.17signing a purchase agreement and, following the purchase of the home, must occupy it as
	562	+	17.18their primary residence.
	563	+	17.19 Subd. 4.Use of funds.Assistance under this section is limited to ten percent of the
	564	+	17.20purchase price of a one unit or two unit home, not to exceed $32,000. Beginning in fiscal
	565	+	17.21year 2027, the maximum amount of assistance may be increased to up to ten percent of the
	566	+	17.22median home sales price as reported in the previous year's Minnesota Realtors Annual
	567	+	17.23Report on the Minnesota Housing Market. Funds are reserved at the issuance of preapproval.
	568	+	17.24Reservation of funds is not contingent on having an executed purchase agreement. The
	569	+	17.25assistance must be provided in the form of a no-interest loan that is forgiven over five years,
	570	+	17.26forgivable at a rate of 20 percent per year on the day after the anniversary date of the note,
	571	+	17.27with the final 20 percent forgiven on the down payment assistance loan maturity date. There
	572	+	17.28is no monthly pro rata or partial-year credit. The loan has no monthly payment and does
	573	+	17.29not accrue interest. The prorated balance due is repayable if the property converts to
	574	+	17.30nonowner occupancy, is sold, is subjected to an ineligible refinance, is subjected to an
	575	+	17.31unauthorized transfer of title, or is subjected to a completed foreclosure action within the
	576	+	17.32five-year loan term. Recapture can be waived in the event of financial or personal hardship.
	577	+	17.33The administering CDFI may retain recaptured funds for assisting eligible homebuyers as
	578	+	17.34provided in this section. Funds may be used for closing costs, down payment, or principal
	579	+	17Article 2 Sec. 9.
	580	+	S2298-2 2nd EngrossmentSF2298 REVISOR MS 18.1reduction. The eligible household may select any first mortgage lender or broker of their
	581	+	18.2choice, provided that the funds are used in conjunction with a conforming first mortgage
	582	+	18.3loan that is fully amortizing and meets the standards of a qualified mortgage or meets the
	583	+	18.4minimum standards for exemption under Code of Federal Regulations, title 12, section
	584	+	18.51026.43. Funds may be used in conjunction with other programs the eligible household may
	585	+	18.6qualify for and the loan placed in any priority position.
	586	+	18.7 Subd. 5.Report to legislature.By January 15 each year, the administering CDFI must
	587	+	18.8report to the chairs and ranking minority members of the legislative committees with
	588	+	18.9jurisdiction over housing finance and policy the following information:
	589	+	18.10 (1) the number and amounts of loans closed;
	590	+	18.11 (2) the median loan amount;
	591	+	18.12 (3) the number and amounts of loans issued by race or ethnic categories;
	592	+	18.13 (4) the median home purchase price;
	593	+	18.14 (5) the interest rates and types of mortgages;
	594	+	18.15 (6) the total amount returned to the fund; and
	595	+	18.16 (7) the number and amounts of loans issued by county.
	596	+	18.17Sec. 10. Laws 2023, chapter 37, article 1, section 2, subdivision 20, is amended to read:
	597	+	-0-100,000,000
	598	+	18.18Subd. 20.Community-Based First-Generation
	599	+	18.19Homebuyers Down Payment Assistance
	600	+	18.20This appropriation is for a grant to Midwest
	601	+	18.21Minnesota Community Development
	602	+	18.22Corporation (MMCDC) to act as the
	603	+	18.23administrator of the community-based
	604	+	18.24first-generation homebuyers down payment
	605	+	18.25assistance program. The funds shall be
	606	+	18.26available to MMCDC for a three-year period
	607	+	18.27commencing with issuance of the funds to
	608	+	18.28MMCDC. At the expiration of that period, any
	609	+	18.29unused funds shall be remitted to the agency.
	610	+	18.30Any funds recaptured by MMCDC after the
	611	+	18.31expiration of that period shall be remitted to
	612	+	18.32the agency. Funds remitted to the agency
612	613		18Article 2 Sec. 10.
613		-	S2298-3 3rd EngrossmentSF2298 REVISOR MS 19.1 (9) the mean and median price of each type of housing, including but not limited to
614		-	19.2single-family houses, townhouses, condominiums, and manufactured housing.
615		-	19.3 Sec. 11. Minnesota Statutes 2024, section 507.18, subdivision 5, is amended to read:
616		-	19.4 Subd. 5.Discharge of restrictive covenants related to protected classes.The owner
617		-	19.5of any interest in real property may record, at no cost, the statutory form provided in
618		-	19.6subdivision 6 in the office of the county recorder of any county where the real property is
619		-	19.7located to discharge and release a restrictive covenant related to a protected class permanently
620		-	19.8from the title. This subdivision does not apply to real property registered under chapters
621		-	19.9508 and 508A. The discharge of the restrictive covenant is valid and enforceable under the
622		-	19.10law of Minnesota when the statutory form provided in subdivision 6 is properly recorded,
623		-	19.11but the instrument containing such restrictive covenants shall have full force in all other
624		-	19.12respects and shall be construed as if no such restrictive covenant were contained therein. A
625		-	19.13restrictive covenant affecting a protected class is void regardless of whether a statutory form
626		-	19.14as provided for in this section has been recorded in the office of the county recorder in the
627		-	19.15county where the real property affected by the restrictive covenant is located.
628		-	19.16 EFFECTIVE DATE.This section is effective the day following final enactment.
629		-	19.17Sec. 12. Minnesota Statutes 2024, section 507.18, subdivision 6, is amended to read:
630		-	19.18 Subd. 6.Filing; recording.(a) The county recorder must accept the statutory form
631		-	19.19provided in this subdivision for recording when the form:
632		-	19.20 (1) has been executed before a notary;
633		-	19.21 (2) contains the legal description of the real property affected by the restrictive covenant
634		-	19.22related to a protected class;
635		-	19.23 (3) contains the date of recording of the instrument containing the restrictive covenant,
636		-	19.24and the volume and page number or document number of the instrument; and
637		-	19.25 (4) complies with all other recording requirements, and applicable recording fees have
638		-	19.26been paid.
639		-	19.27 (b) The commissioner of commerce must provide electronic copies of the statutory form
640		-	19.28in this subdivision to the public free of at no cost.
641		-	19.29 (c) The recording of this form does not alter or affect the duration or expiration of
642		-	19.30covenants, conditions, or restrictions under section 500.20 and may not be used to extend
643		-	19.31the effect of a covenant, condition, or restriction.
644		-	19Article 2 Sec. 12.
645		-	S2298-3 3rd EngrossmentSF2298 REVISOR MS 20.1 (d) The statutory form that follows may be used to discharge restrictive covenants on
646		-	20.2property that limit the ownership, occupancy, use, or financing based on protected class:
647		-	20.3DISCHARGE OF RESTRICTIVE COVENANT AFFECTING PROTECTED CLASSES
648		-	20.4 Pursuant to Minnesota Statutes, section 507.18, any restrictive covenant affecting a
649		-	20.5protected class, including covenants which were placed on the real property with the intent
650		-	20.6of restricting the use, occupancy, ownership, or financing because of a person's race, color,
651		-	20.7creed, national origin, or religious beliefs, is discharged and released from the land described
652		-	20.8herein.
653		-	20.9 State of Minnesota, County of ....................
654		-	20.10 I/we, .............................................................................................., having an ownership
655		-	20.11or other interest in all or part of the real property described herein, solemnly swear that the
656		-	20.12contents of this form are true to the best of my/our knowledge, except as to those matters
657		-	20.13stated on information and belief, and that as to those matters I/we believe them to be true.
658		-	20.14 Name and Address of Owner(s) .............................................................................................
659		-	20.15 The real property owned by owner(s) is located in ................................. County,
660		-	20.16Minnesota, and is legally described as follows:
661		-	20.17 OWNER(s), ...................................................................................., swears and affirms
662		-	20.18that Owner(s) is/are 18 years of age or older and is/are not under any legal incapacity and
663		-	20.19that the information provided in this form is true and correct based on the information
664		-	20.20available and based on reasonable information and belief:
665		-	20.21 (1) a restrictive covenant which had the intent to restrict the use, occupancy, ownership,
666		-	20.22or financing of this property based on a protected class, including race, color, creed, national
667		-	20.23origin, or religion, existed at one time related to the property described in this form;
668		-	20.24 (2) the restrictive covenant is contained in an instrument dated ........................., and
669		-	20.25recorded as Document Number ....................... (or in Book ............... of .............., Page........)
670		-	20.26in the Office of the County Recorder of .................., Minnesota;
671		-	20.27 (3) restrictive covenants relating to or affecting protected classes are unenforceable and
672		-	20.28void pursuant to Minnesota Statutes, sections 507.18 and 363A.09, the United States
673		-	20.29Constitution, and the Minnesota Constitution;
674		-	20.30 (4) Minnesota Statutes, section 507.18, provides for the discharge of a restrictive covenant
675		-	20.31of the nature described herein through the use of this statutory form to permanently discharge
676		-	20Article 2 Sec. 12.
677		-	S2298-3 3rd EngrossmentSF2298 REVISOR MS 21.1such covenants from the land described herein and release the current and future landowner(s)
678		-	21.2from any such restrictive covenant related to or affecting protected classes;
679		-	21.3 (5) the instrument containing such restrictive covenants shall have full force in all other
680		-	21.4respects and shall be construed as if no such restrictive covenant was contained therein; and
681		-	21.5 (6) the filing of this form does not alter or change the duration or expiration of covenants,
682		-	21.6conditions, or restrictions under Minnesota Statutes, section 500.20.
683		-	21.7 The affiant(s) know(s) the matters herein stated are true and make(s) this affidavit for
684		-	21.8the purpose of documenting the discharge of the illegal and unenforceable restrictive
685		-	21.9covenants affecting protected classes.
686		-	21.10 ............................................................................
687		-	21.11 Affiant (Owner(s) Signature)
688		-	21.12Signed and sworn before me on
689		-	21.13........................ (Date), by
690		-	21.14.......................................(Affiant/Owner)
691		-	21.15 ............................................................................
692		-	21.16 Signature of Notary
693		-	21.17Stamp
694		-	21.18My commission expires .........................
695		-	21.19 EFFECTIVE DATE.This section is effective the day following final enactment.
696		-	21.20Sec. 13. Laws 2023, chapter 37, article 1, section 2, subdivision 20, is amended to read:
697		-	-0-100,000,000
698		-	21.21Subd. 20.Community-Based First-Generation
699		-	21.22Homebuyers Down Payment Assistance
700		-	21.23This appropriation is for a grant to Midwest
701		-	21.24Minnesota Community Development
702		-	21.25Corporation (MMCDC) to act as the
703		-	21.26administrator of the community-based
704		-	21.27first-generation homebuyers down payment
705		-	21.28assistance program. The funds shall be
706		-	21.29available to MMCDC for a three-year period
707		-	21.30commencing with issuance of the funds to
708		-	21.31MMCDC. At the expiration of that period, any
709		-	21.32unused funds shall be remitted to the agency.
710		-	21.33Any funds recaptured by MMCDC after the
711		-	21.34expiration of that period shall be remitted to
712		-	21Article 2 Sec. 13.
713		-	S2298-3 3rd EngrossmentSF2298 REVISOR MS 22.1the agency. Funds remitted to the agency
714		-	22.2under this paragraph are appropriated to the
715		-	22.3agency for administration of the
716		-	22.4first-generation homebuyers down payment
717		-	22.5assistance fund.
718		-	22.6 Sec. 14. Laws 2023, chapter 37, article 1, section 2, subdivision 21, is amended to read:
719		-	-0-4,800,00022.7Subd. 21.Local Housing Trust Fund Grants
720		-	22.8(a) This appropriation is for deposit in the
721		-	22.9housing development fund for grants to local
722		-	22.10housing trust funds established under
723		-	22.11Minnesota Statutes, section 462C.16, to
724		-	22.12incentivize local funding. This is a onetime
725		-	22.13appropriation.
726		-	22.14(b) A grantee is eligible to receive a grant
727		-	22.15amount equal to 100 percent of the public
728		-	22.16revenue committed to the local housing trust
729		-	22.17fund from any source other than the state or
730		-	22.18federal government, up to $150,000, and in
731		-	22.19addition, an amount equal to 50 percent of the
732		-	22.20public revenue committed to the local housing
733		-	22.21trust fund from any source other than the state
734		-	22.22or federal government that is more than
735		-	22.23$150,000 but not more than $300,000.
736		-	22.24(c) A grantee must use grant funds within eight
737		-	22.25five years of receipt for purposes (1)
738		-	22.26authorized under Minnesota Statutes, section
739		-	22.27462C.16, subdivision 3, and (2) benefiting
740		-	22.28households with incomes at or below 115
741		-	22.29percent of the state median income. A grantee
742		-	22.30must return any grant funds not used for these
743		-	22.31purposes within eight years of receipt to the
744		-	22.32commissioner of the Minnesota Housing
745		-	22.33Finance Agency for deposit into the housing
746		-	22.34development fund.
747		-	22Article 2 Sec. 14.
748		-	S2298-3 3rd EngrossmentSF2298 REVISOR MS 23.1 Sec. 15. Laws 2023, chapter 37, article 2, section 10, is amended to read:
749		-	23.2 Sec. 10. HIGH-RISE SPRINKLER SYSTEM GRANT AND LOAN PROGRAM.
750		-	23.3 Subdivision 1.Definitions.(a) The definitions in this subdivision apply to this section.
751		-	23.4 (b) "Eligible building" means an existing residential building in which:
752		-	23.5 (1) at least one story used for human occupancy is the building is seven stories or more
753		-	23.6in height or 75 feet or more above the lowest level of fire department vehicle access; and
754		-	23.7 (2) at least two-thirds of its units are affordable to households with an annual income at
755		-	23.8or below 50 60 percent of the area median income as determined by the United States
756		-	23.9Department of Housing and Urban Development, adjusted for family size, that is paying
757		-	23.10no more than 30 percent of annual income on rent.
758		-	23.11 (c) "Sprinkler system" means the same as the term "fire protection system" as defined
759		-	23.12in Minnesota Statutes, section 299M.01.
760		-	23.13 Subd. 2.Grant program Use of funds.The commissioner of the Housing Finance
761		-	23.14Agency must make grants or loans to owners of eligible buildings for installation of sprinkler
762		-	23.15systems and, if necessary, for relocation of residents during the installation of sprinkler
763		-	23.16systems. Priority shall be given to nonprofit applicants. The maximum grant per eligible
764		-	23.17building shall be $2,000,000. Each grant to a nonprofit organization shall require a 25
765		-	23.18percent match. Each grant to a for-profit organization shall require a 50 percent match.
766		-	23.19Sec. 16. POLICY FRAMEWORK FOR TARGETED STABILIZATION OF
767		-	23.20REGULATED AFFORDABLE HOUSING.
768		-	23.21 (a) The commissioner of the Housing Finance Agency must work with affordable housing
769		-	23.22stakeholders, including the Interagency Stabilization Group, to develop a policy framework
770		-	23.23for targeted stabilization of affordable rental housing. In developing this framework, the
771		-	23.24commissioner must identify:
772		-	23.25 (1) strategies, tools, and funding mechanisms for targeted stabilization of affordable
773		-	23.26rental housing and recapitalization of distressed properties;
774		-	23.27 (2) potential improvements for regulatory relief for affordable rental housing providers
775		-	23.28and must implement these improvements where feasible;
776		-	23.29 (3) a specific plan for relief when an operator of permanent housing cannot identify and
777		-	23.30secure adequate service funding that matches the tenants' needs; and
778		-	23Article 2 Sec. 16.
779		-	S2298-3 3rd EngrossmentSF2298 REVISOR MS 24.1 (4) a strategy with the commissioner of human services to integrate the awarding of state
780		-	24.2service dollars to permanent supportive housing so that state service dollars can accompany
781		-	24.3capital awards in the consolidated request for proposal process.
782		-	24.4 (b) The commissioner of the Housing Finance Agency must report quarterly to the
783		-	24.5Minnesota Housing Finance Agency Board of Directors on the policy framework,
784		-	24.6improvements implemented, and any potential changes to legislation that may be needed
785		-	24.7to support targeted stabilization of regulated affordable housing and recapitalization of
786		-	24.8distressed properties.
787		-	24.9 (c) By January 5, 2026, the commissioner of the Housing Finance Agency must report
788		-	24.10to the chairs and ranking minority members of the legislative committees having jurisdiction
789		-	24.11over housing finance and policy on the policy framework, improvements implemented, and
790		-	24.12any potential changes to legislation that may be needed to support targeted stabilization of
791		-	24.13regulated affordable housing and recapitalization of distressed properties.
792		-	24.14Sec. 17. INTERAGENCY STABILIZATION GROUP.
793		-	24.15 The commissioner of the Housing Finance Agency may convene regular meetings of
794		-	24.16public funders and affordable housing stakeholders to seek funding solutions that support
795		-	24.17the preservation and stabilization of affordable properties.
796		-	24.18Sec. 18. TASK FORCE ON HOMEOWNERS AND COMMERCIAL PROPERTY
797		-	24.19INSURANCE.
798		-	24.20 Subdivision 1.Establishment.A task force is established to evaluate issues and provide
799		-	24.21recommendations relating to insurance affordability of single-family housing and multifamily
800		-	24.22rental housing and for preventing disruptions or loss to the development, preservation, and
801		-	24.23long-term sustainability of Minnesota's housing infrastructure.
802		-	24.24 Subd. 2.Membership.(a) The task force consists of the following:
803		-	24.25 (1) one member appointed by the commissioner of commerce;
804		-	24.26 (2) one member appointed by the speaker of the house;
805		-	24.27 (3) one member appointed by the house minority leader;
806		-	24.28 (4) one member appointed by the senate majority leader;
807		-	24.29 (5) one member appointed by the senate minority leader;
808		-	24.30 (6) one member appointed by the Minnesota Consortium of Community Developers;
809		-	24Article 2 Sec. 18.
810		-	S2298-3 3rd EngrossmentSF2298 REVISOR MS 25.1 (7) two members appointed by the Insurance Federation of Minnesota, one with expertise
811		-	25.2in homeowners insurance and one with expertise in commercial insurance;
812		-	25.3 (8) one member appointed by Big I Minnesota;
813		-	25.4 (9) one member appointed by the Minnesota Realtors;
814		-	25.5 (10) one member appointed by the Minnesota Community Development Financial
815		-	25.6Institutions Coalition;
816		-	25.7 (11) one member appointed by the Minnesota Homeownership Center;
817		-	25.8 (12) one member appointed by the Housing Justice Center;
818		-	25.9 (13) one member appointed by the Professional Insurance Agents of Minnesota;
819		-	25.10 (14) one member appointed by the Minnesota Bankers Association;
820		-	25.11 (15) one member appointed by the Minnesota Commercial Real Estate Association;
821		-	25.12 (16) one member appointed by the Minnesota Multi Housing Association; and
822		-	25.13 (17) one member appointed by Ceres with expertise in climate risk mitigation and
823		-	25.14insurance markets.
824		-	25.15 (b) The appointing authorities must make the appointments by August 15, 2025.
825		-	25.16 Subd. 3.Duties.(a) The task force must identify recommendations to strengthen and
826		-	25.17stabilize the homeowners and commercial property insurance industry.
827		-	25.18 (b) The task force must consult with the commissioner of the Housing Finance Agency,
828		-	25.19the commissioner of employment and economic development, other relevant state and local
829		-	25.20agencies, and key stakeholders in the insurance and housing industries.
830		-	25.21 (c) The task force must review:
831		-	25.22 (1) risk mitigation and property resilience to natural hazards, and the effect on insurance
832		-	25.23costs;
833		-	25.24 (2) the effect of liability laws on insurance costs and whether tort reform could reduce
834		-	25.25costs;
835		-	25.26 (3) minimum notice for coverage changes, including enforcement and oversight;
836		-	25.27 (4) public reporting of aggregated data relating to insurance plan costs and coverage;
837		-	25.28 (5) the reinsurance market for homeowners and commercial property insurance;
838		-	25Article 2 Sec. 18.
839		-	S2298-3 3rd EngrossmentSF2298 REVISOR MS 26.1 (6) the current state-supported insurance program and the potential to expand the program
840		-	26.2to include a catastrophic reinsurance fund and a self-insured pool;
841		-	26.3 (7) factors that increase claim costs, including but not limited to post-loss contractors,
842		-	26.4fraudulent claims, climate, inflation, and discontinued building materials;
843		-	26.5 (8) regulatory factors that increase insurance costs or decrease access to insurance
844		-	26.6products; and
845		-	26.7 (9) other areas that would strengthen and stabilize the homeowners and commercial
846		-	26.8property insurance industry.
847		-	26.9 Subd. 4.Administration.The Legislative Coordinating Commission must provide
848		-	26.10administrative support to the task force. Upon request of the task force, the commissioners
849		-	26.11of commerce, the Housing Finance Agency, and employment and economic development
850		-	26.12must provide technical support and expertise.
851		-	26.13 Subd. 5.Meetings.(a) The Legislative Coordinating Commission must ensure the first
852		-	26.14meeting of the task force convenes no later than September 15, 2025, and must provide
853		-	26.15accessible physical or virtual meeting space as necessary for the task force to conduct work.
854		-	26.16 (b) At the first meeting, the task force must elect a chair or cochairs from those appointed
855		-	26.17by the house and senate by a majority vote of those members present and may elect a
856		-	26.18vice-chair as necessary.
857		-	26.19 (c) The task force must establish a schedule for meetings and must meet as necessary
858		-	26.20to accomplish the duties under subdivision 3.
859		-	26.21 (d) The task force is subject to Minnesota Statutes, chapter 13D.
860		-	26.22 Subd. 6.Report required.(a) The task force must submit a report to the commissioners
861		-	26.23of commerce, the Housing Finance Agency, and employment and economic development
862		-	26.24and the chairs and ranking minority members of the legislative committees having jurisdiction
863		-	26.25over the agencies listed in this paragraph by February 15, 2026.
864		-	26.26 (b) The report must:
865		-	26.27 (1) summarize the activities of the task force;
866		-	26.28 (2) provide findings and recommendations adopted by the task force;
867		-	26.29 (3) make recommendations related to tort reform that could reduce insurance costs;
868		-	26.30 (4) include any draft legislation required to implement recommendations; and
869		-	26.31 (5) include other information the task force believes is necessary to report.
870		-	26Article 2 Sec. 18.
871		-	S2298-3 3rd EngrossmentSF2298 REVISOR MS 27.1 Subd. 7.Expiration.The task force expires upon submission of the report required
872		-	27.2under subdivision 6.
873		-	27.3 EFFECTIVE DATE.This section is effective the day following final enactment.
874		-	27Article 2 Sec. 18.
875		-	S2298-3 3rd EngrossmentSF2298 REVISOR MS Page.Ln 1.14APPROPRIATIONS...............................................................................ARTICLE 1
	614	+	S2298-2 2nd EngrossmentSF2298 REVISOR MS 19.1under this paragraph are appropriated to the
	615	+	19.2agency for administration of the
	616	+	19.3first-generation homebuyers down payment
	617	+	19.4assistance fund.
	618	+	19.5 Sec. 11. Laws 2023, chapter 37, article 1, section 2, subdivision 21, is amended to read:
	619	+	-0-4,800,00019.6Subd. 21.Local Housing Trust Fund Grants
	620	+	19.7(a) This appropriation is for deposit in the
	621	+	19.8housing development fund for grants to local
	622	+	19.9housing trust funds established under
	623	+	19.10Minnesota Statutes, section 462C.16, to
	624	+	19.11incentivize local funding. This is a onetime
	625	+	19.12appropriation.
	626	+	19.13(b) A grantee is eligible to receive a grant
	627	+	19.14amount equal to 100 percent of the public
	628	+	19.15revenue committed to the local housing trust
	629	+	19.16fund from any source other than the state or
	630	+	19.17federal government, up to $150,000, and in
	631	+	19.18addition, an amount equal to 50 percent of the
	632	+	19.19public revenue committed to the local housing
	633	+	19.20trust fund from any source other than the state
	634	+	19.21or federal government that is more than
	635	+	19.22$150,000 but not more than $300,000.
	636	+	19.23(c) A grantee must use grant funds within eight
	637	+	19.24five years of receipt for purposes (1)
	638	+	19.25authorized under Minnesota Statutes, section
	639	+	19.26462C.16, subdivision 3, and (2) benefiting
	640	+	19.27households with incomes at or below 115
	641	+	19.28percent of the state median income. A grantee
	642	+	19.29must return any grant funds not used for these
	643	+	19.30purposes within eight years of receipt to the
	644	+	19.31commissioner of the Minnesota Housing
	645	+	19.32Finance Agency for deposit into the housing
	646	+	19.33development fund.
	647	+	19Article 2 Sec. 11.
	648	+	S2298-2 2nd EngrossmentSF2298 REVISOR MS 20.1 Sec. 12. Laws 2023, chapter 37, article 2, section 10, is amended to read:
	649	+	20.2 Sec. 10. HIGH-RISE SPRINKLER SYSTEM GRANT AND LOAN PROGRAM.
	650	+	20.3 Subdivision 1.Definitions.(a) The definitions in this subdivision apply to this section.
	651	+	20.4 (b) "Eligible building" means an existing residential building in which:
	652	+	20.5 (1) at least one story used for human occupancy is the building is seven stories or more
	653	+	20.6in height or 75 feet or more above the lowest level of fire department vehicle access; and
	654	+	20.7 (2) at least two-thirds of its units are affordable to households with an annual income at
	655	+	20.8or below 50 60 percent of the area median income as determined by the United States
	656	+	20.9Department of Housing and Urban Development, adjusted for family size, that is paying
	657	+	20.10no more than 30 percent of annual income on rent.
	658	+	20.11 (c) "Sprinkler system" means the same as the term "fire protection system" as defined
	659	+	20.12in Minnesota Statutes, section 299M.01.
	660	+	20.13 Subd. 2.Grant program Use of funds.The commissioner of the Housing Finance
	661	+	20.14Agency must make grants or loans to owners of eligible buildings for installation of sprinkler
	662	+	20.15systems and, if necessary, for relocation of residents during the installation of sprinkler
	663	+	20.16systems. Priority shall be given to nonprofit applicants. The maximum grant per eligible
	664	+	20.17building shall be $2,000,000. Each grant to a nonprofit organization shall require a 25
	665	+	20.18percent match. Each grant to a for-profit organization shall require a 50 percent match.
	666	+	20.19Sec. 13. POLICY FRAMEWORK FOR TARGETED STABILIZATION OF
	667	+	20.20REGULATED AFFORDABLE HOUSING.
	668	+	20.21 (a) The commissioner of the Housing Finance Agency must work with affordable housing
	669	+	20.22stakeholders, including the Interagency Stabilization Group, to develop a policy framework
	670	+	20.23for targeted stabilization of affordable rental housing. In developing this framework, the
	671	+	20.24commissioner must identify:
	672	+	20.25 (1) strategies, tools, and funding mechanisms for targeted stabilization of affordable
	673	+	20.26rental housing and recapitalization of distressed properties;
	674	+	20.27 (2) potential improvements for regulatory relief for affordable rental housing providers
	675	+	20.28and must implement these improvements where feasible;
	676	+	20.29 (3) a specific plan for relief when an operator of permanent housing cannot identify and
	677	+	20.30secure adequate service funding that matches the tenants' needs; and
	678	+	20Article 2 Sec. 13.
	679	+	S2298-2 2nd EngrossmentSF2298 REVISOR MS 21.1 (4) a strategy with the commissioner of human services to integrate the awarding of state
	680	+	21.2service dollars to permanent supportive housing so that state service dollars can accompany
	681	+	21.3capital awards in the consolidated request for proposal process.
	682	+	21.4 (b) The commissioner of the Housing Finance Agency must report quarterly to the
	683	+	21.5Minnesota Housing Finance Agency Board of Directors on the policy framework,
	684	+	21.6improvements implemented, and any potential changes to legislation that may be needed
	685	+	21.7to support targeted stabilization of regulated affordable housing and recapitalization of
	686	+	21.8distressed properties.
	687	+	21.9 (c) By January 5, 2026, the commissioner of the Housing Finance Agency must report
	688	+	21.10to the chairs and ranking minority members of the legislative committees having jurisdiction
	689	+	21.11over housing finance and policy on the policy framework, improvements implemented, and
	690	+	21.12any potential changes to legislation that may be needed to support targeted stabilization of
	691	+	21.13regulated affordable housing and recapitalization of distressed properties.
	692	+	21.14Sec. 14. INTERAGENCY STABILIZATION GROUP.
	693	+	21.15 The commissioner of the Housing Finance Agency may convene regular meetings of
	694	+	21.16public funders and affordable housing stakeholders to seek funding solutions that support
	695	+	21.17the preservation and stabilization of affordable properties.
	696	+	21.18Sec. 15. TASK FORCE ON HOMEOWNERS AND COMMERCIAL PROPERTY
	697	+	21.19INSURANCE.
	698	+	21.20 Subdivision 1.Establishment.A task force is established to evaluate issues and provide
	699	+	21.21recommendations relating to insurance affordability of single-family housing and multifamily
	700	+	21.22rental housing and for preventing disruptions or loss to the development, preservation, and
	701	+	21.23long-term sustainability of Minnesota's housing infrastructure.
	702	+	21.24 Subd. 2.Membership.(a) The task force consists of the following:
	703	+	21.25 (1) one member appointed by the commissioner of commerce;
	704	+	21.26 (2) one member appointed by the speaker of the house;
	705	+	21.27 (3) one member appointed by the house minority leader;
	706	+	21.28 (4) one member appointed by the senate majority leader;
	707	+	21.29 (5) one member appointed by the senate minority leader;
	708	+	21.30 (6) one member appointed by the Minnesota Consortium of Community Developers;
	709	+	21Article 2 Sec. 15.
	710	+	S2298-2 2nd EngrossmentSF2298 REVISOR MS 22.1 (7) one member appointed by the Insurance Federation of Minnesota;
	711	+	22.2 (8) one member appointed by Big I Minnesota;
	712	+	22.3 (9) one member appointed by the Minnesota Realtors;
	713	+	22.4 (10) one member appointed by the Minnesota Community Development Financial
	714	+	22.5Institutions Coalition;
	715	+	22.6 (11) one member appointed by the Minnesota Homeownership Center;
	716	+	22.7 (12) one member appointed by the Housing Justice Center; and
	717	+	22.8 (13) one member with climate science expertise.
	718	+	22.9 (b) The appointing authorities must make the appointments by August 15, 2025.
	719	+	22.10 Subd. 3.Duties.(a) The task force must identify recommendations to strengthen and
	720	+	22.11stabilize the homeowners and commercial property insurance industry.
	721	+	22.12 (b) The task force must consult with the commissioner of the Housing Finance Agency,
	722	+	22.13the commissioner of employment and economic development, other relevant state and local
	723	+	22.14agencies, and key stakeholders in the insurance and housing industries.
	724	+	22.15 (c) The task force must review:
	725	+	22.16 (1) risk mitigation and property resilience to natural hazards, and the effect on insurance
	726	+	22.17costs;
	727	+	22.18 (2) liability laws impacting insurance costs;
	728	+	22.19 (3) minimum notice for coverage changes, including enforcement and oversight;
	729	+	22.20 (4) public reporting of aggregated data relating to insurance plan costs and coverage;
	730	+	22.21 (5) the reinsurance market for homeowners and commercial property insurance;
	731	+	22.22 (6) the current state-supported insurance program and the potential to expand the program
	732	+	22.23to include a catastrophic reinsurance fund and a self-insured pool;
	733	+	22.24 (7) factors that increase claim costs, including but not limited to post-loss contractors,
	734	+	22.25fraudulent claims, climate, inflation, and discontinued building materials; and
	735	+	22.26 (8) other areas that would strengthen and stabilize the homeowners and commercial
	736	+	22.27property insurance industry.
	737	+	22.28 Subd. 4.Administration.The Legislative Coordinating Commission must provide
	738	+	22.29administrative support to the task force. Upon request of the task force, the commissioners
	739	+	22Article 2 Sec. 15.
	740	+	S2298-2 2nd EngrossmentSF2298 REVISOR MS 23.1of commerce, the Housing Finance Agency, and employment and economic development
	741	+	23.2must provide technical support and expertise.
	742	+	23.3 Subd. 5.Meetings.(a) The Legislative Coordinating Commission must ensure the first
	743	+	23.4meeting of the task force convenes no later than September 15, 2025, and must provide
	744	+	23.5accessible physical or virtual meeting space as necessary for the task force to conduct work.
	745	+	23.6 (b) At the first meeting, the task force must elect a chair or cochairs from those appointed
	746	+	23.7by the house and senate by a majority vote of those members present and may elect a
	747	+	23.8vice-chair as necessary.
	748	+	23.9 (c) The task force must establish a schedule for meetings and must meet as necessary
	749	+	23.10to accomplish the duties under subdivision 3.
	750	+	23.11 (d) The task force is subject to Minnesota Statutes, chapter 13D.
	751	+	23.12 Subd. 6.Report required.(a) The task force must submit a report to the commissioners
	752	+	23.13of commerce, the Housing Finance Agency, and employment and economic development
	753	+	23.14and the chairs and ranking minority members of the legislative committees having jurisdiction
	754	+	23.15over the agencies listed in this paragraph by February 15, 2026.
	755	+	23.16 (b) The report must:
	756	+	23.17 (1) summarize the activities of the task force;
	757	+	23.18 (2) provide findings and recommendations adopted by the task force;
	758	+	23.19 (3) include any draft legislation required to implement recommendations; and
	759	+	23.20 (4) include other information the task force believes is necessary to report.
	760	+	23.21 Subd. 7.Expiration.The task force expires upon submission of the report required
	761	+	23.22under subdivision 6.
	762	+	23.23 EFFECTIVE DATE.This section is effective the day following final enactment.
	763	+	23Article 2 Sec. 15.
	764	+	S2298-2 2nd EngrossmentSF2298 REVISOR MS Page.Ln 1.13APPROPRIATIONS...............................................................................ARTICLE 1
876	765		Page.Ln 10.5POLICY..................................................................................................ARTICLE 2
877	766		1
878	767		APPENDIX
879		-	Article locations for S2298-3 16A.287 TRANSFER; HOUSING SUPPORT.
	768	+	Article locations for S2298-2 16A.287 TRANSFER; HOUSING SUPPORT.
880	769		In fiscal year 2025 and each year thereafter, the commissioner of management and budget must
881	770		transfer $450,000 from the general fund to the housing support account, under section 462A.43.
882	771		462A.43 HOUSING SUPPORT ACCOUNT.
883	772		The commissioner of management and budget shall establish the housing support account in
884	773		the special revenue fund for the deposit of certain funds provided by law. Money appropriated from
885	774		the account by law must provide housing support for Minnesotans.
886	775		1R
887	776		APPENDIX
888		-	Repealed Minnesota Statutes: S2298-3
	777	+	Repealed Minnesota Statutes: S2298-2