Omnibus Housing and Homelessness Prevention policy and appropriations

Criteria for competitive development program funding were changed to award points to jurisdictions allowing multifamily housing in at least 50% of commercial zones (down from 75%) and duplexes in 50% of single-family zones (down from 75%), and to remove parking mandates for both single-family and multifamily housing.

New criteria were added to award points to jurisdictions that offer density bonuses for affordable housing or have adopted inclusionary zoning policies.

A new requirement mandates that the commissioner conduct community engagement with municipalities and housing organizations when updating scoring criteria for competitive development programs.

The down payment assistance program was updated to clarify that assistance is limited to 10% of the purchase price or median sales price, and funds must be used as a no-interest loan with specific forgiveness terms.

A new effective date provision was added, stating that the new section applies to selection criteria and scoring systems developed on or after the day following final enactment.

Increased the total housing budget from approximately $97 million to $158.7 million, with specific increases for workforce housing, rental assistance, and infrastructure grants.

Created a new $500,000 one-time appropriation for a statewide tenant education and hotline service providing free legal advice to renters.

Established a new $150,000 appropriation for an Accessible Housing Task Force to address housing needs for people with disabilities.

Repealed the 'Community Stabilization' program and the 'Housing Support Account,' removing specific grants for Huntington Place and Wilder Park.

Reduced the 'Community-Based First-Generation Homebuyers' down payment assistance appropriation from $2 million to $500,000, while simultaneously increasing the total appropriation for this program in the bill's summary to $100 million.

Authorized the issuance of up to $100 million in new housing infrastructure bonds to fund future housing projects.

Mandated that the Housing Finance Agency convene an annual meeting with cities and counties experiencing high housing cost burdens to discuss homelessness and housing supply.

Required the agency to prioritize competitive development grants for jurisdictions that have adopted pro-development zoning policies, such as allowing multifamily housing in commercial zones.

Added a requirement for the agency to report annually on the financial stability of the affordable housing industry, including rent collection rates and operating expenses.

Modified the eligibility criteria for the first-generation homebuyer program to clarify that assistance is available statewide and expanded the definition of eligible homebuyers.

The posting date of the bill was updated from April 22, 2025, to May 18, 2025, reflecting the progression to the 3rd Engrossment.

New reporting requirements were added mandating the commissioner to submit an annual report on the financial stability of the affordable housing industry, including metrics on operating expenses, revenue ratios, and rent collection rates divided into four specific geographic regions.

A new section was added requiring the commissioner to hold an annual meeting focused on affordable housing.

The bill text was amended to explicitly include the removal of certain real property recording fees in its description of related actions.

The section number for the administrative funding of the Task Force on Homeowners and Commercial Property Insurance was updated from section 13 to section 18.

The funding description for the Task Force was changed from a specific fiscal year (2026) to a relative timeframe ('the first year'), allowing the appropriation to apply to whichever fiscal year the bill is enacted.

A new requirement was added to hold an annual meeting for affordable housing initiatives.

A section establishing or referencing the Task Force on Homeowners and Commercial Property Insurance was removed from the bill text.

The total appropriation for the Minnesota Housing Finance Agency increased from $82,798,000 to $96,948,000, with specific new allocations for community stabilization and a new Greater Minnesota Housing Infrastructure Grant Program.

A new requirement was added for the commissioner to submit an annual report on the financial stability of the affordable housing industry, including data on operating expenses, rent collection rates, and regional breakdowns.

The bill includes a new effective date provision stating that most sections become effective the day following final enactment.

The Housing Support Account was repealed, and funds remaining in that account must be transferred to the general fund by June 15, 2025.

Criteria for manufactured home relocation payments were updated to include new exemptions for owners who are not current on lot rentals or taxes and for those facing pending eviction actions.

New language was added to clarify that the Minnesota Housing Finance Agency must inform residents that the $15 manufactured home park assessment is mandatory and not optional.