Portion of local government aid dedicated to cities for pre-1940 housing improvements.

HF 563 requires Minnesota cities receiving certain local government aid to dedicate a specific portion of that funding - calculated as their pre-1940 housing percentage multiplied by their city formula aid amount - to improve housing built before 1940. This dedicated funding can be used directly for urban renewal projects or as grants/low-interest loans to property owners, covering updates to utilities, infrastructure, wiring, plumbing, insulation, heating, cooling, or energy efficiency systems. Cities must dedicate this amount unless it totals less than $100 (in which case no minimum is required), and this funding is in addition to other existing housing program resources. The requirement applies to aid payable in 2025 and future years.