This bill is an act to make housing afforable in the state of Minnesota making all new and old construction in Minnesota

thats is 2500 square feet or under cost $200,000 or less

 

The purpose of the Act is to reduce the cost of housing and improve the availability of housing units for poor and

middle-class families in the state.

 

The Legislature finds that affordable, stable, and accessible housing is central to the health, well-being, and

financial stability of families in Minnesota.

The Legislature finds that the state is facing an increasing number of housing-cost-burdened households—those spending

more than 30% of their income on housing—leading to rising homelessness.

 

For the purposes of the Act, the following are its definitions:* “Affordable Housing Unit” refers to any residential

structure, whether existing or new constructed, having a maximum total finished square footage of less than or equal to

2,500 square feet.* “Maximum Affordable Price” refers to the highest price that is allowed to be paid or appraised on

the “Affordable Housing Unit,” with the price capped at $200,000 or less, with the price readjusted annually according

to the inflation rate, taking into account the Cost of Living Adjustments determined by the Commissioner of Housing

Finance.

 

 

The “Minnesota Housing Affordability Fund” is hereby created in the State treasury.

There is hereby an extra 2% charge on the state income tax due from each taxpayer having an Adjusted Gross Income of

over $200,000 annually.

A taxpayer is eligible for the credit or rebate on the extra 2% charge, provided that the taxpayer is able to show that

100% of their properties are “in compliance with the pricing limit”.

 

 

 

Each city within the state of Minnesota must report annually its compliance with Section III to the County Assessor’s

Office.

Any city that neglects to submit the report of compliance within the stated time period will face a penalty of $500 per

month of violation. Enforcement Failure. In the event that, within one year from the enactment date of this Act, the

city fails to show substantial compliance with the price ceiling on Affordable Housing Units, said city will be

penalized with a one-time payment of $10,000, which will go to the Fund.

 

 

This Act shall fully commence on July 1, 2026, following the succeeding legislative session to accommodate necessary

preparatory work.