create the Minnesota affordable housing fund to increase housing for low-income families.

 

The purpose of this bill is to establish the Minnesota affordable housing fund to support the construction and

preservation affordable housing throughout the state. The goal is to make housing more affordable and reduce

homelessness for low- and moderate-income residents.

 

Minnesota faces a serious housing shortage, especially for families with low incomes. According to Minnesota housing

finance agency over half of renters earning below 50% of the state median income spend more than 30% of their home

income on rent.

Many working families, seniors and young adults, struggle to find safe affordable homes near jobs and schools. By

creating this fund, the state can encourage construction of affordable homes, preserve older rental properties and help

more Minnesota’s live in stable, secure housing. This will improve health, education and economic outcomes across the

state.

 

Affordable Housing: Housing that costs no more than 30% of a household’s gross income.

Low-Income Household: A household earning less than 80% of the Area Median Income (AMI).

MHFA: The Minnesota Housing Finance Agency, which manages state housing programs.

Eligible Developer: Any city, county, tribe, or nonprofit organization that builds or preserves affordable housing.

 

 

The Minnesota Affordable Housing Fund will receive $250 million from the state’s general fund.

Distribution of funds:

60% for construction of new affordable homes and apartments.

25% for renovation or preservation of existing affordable housing.

10% for down-payment or rental assistance programs for families under 80% AMI.

5% for program administration and annual evaluation.

The MHFA may partner with private investors and apply for federal grants to expand funding.

 

 

Any group that misuses money from the Minnesota Affordable Housing Fund must:

Pay back all the money they received plus a 50% penalty,

Be banned from all future state housing funding, and

Be reported to the Minnesota Attorney General for possible criminal charges.

The Minnesota Housing Finance Agency (MHFA) will review all projects and release a yearly public report showing how

funds were used and listing any violations.

Anyone who lies, forges documents, or provides false information to get funding may face fines up to $100,000 and

possible criminal prosecution.

 

This act shall take effect on July 1, 2026.