HF 1141: Housing finance and policy bill. - Minnesota

1st Unofficial Engrossment → 3rd Engrossment · 10 edits · May 15, 2026

MAJOR

The bill was updated from the 1st to the 3rd engrossment, reflecting significant substantive changes including the removal of over 200 legislative sections and the addition of new funding and policy provisions. The most critical changes involve the establishment of a new $10 million appropriation for supportive housing grants to address funding gaps for federal Continuum of Care programs, the authorization of an additional $100 million in housing infrastructure bonds, and the expansion of investment authority for housing and redevelopment authorities. The bill also introduces a pilot program for seniors to share homes, modifies rent increase limits in manufactured home parks to one per year, and clarifies agency meeting requirements using interactive technology.

Scope change

The bill's scope expanded to include new investment options for housing authorities and a specific pilot program for senior housing sharing, while the scope of manufactured home park regulations was narrowed by removing exemptions for certain family transfers and sales.

FISCAL

Added a new $10 million appropriation for supportive housing grants to assist federal Continuum of Care grantees with funding gaps, with $9 million specifically for emergency supplemental support.

Authorized the issuance of up to $100 million in additional housing infrastructure bonds to expand funding for housing projects.

Created a new $150,000 grant for the Minnesota Nice HomeShare pilot program to help seniors reduce living expenses by matching homeowners with spare rooms to adults in need of affordable housing.

ELIGIBILITY

Expanded investment authority to allow housing and redevelopment authorities to invest in index mutual funds and specific fixed-income securities, previously limited to the State Board of Investment.

REQUIREMENT

Changed the rent increase limit in manufactured home parks from two increases per year to one increase per year, with a presumption that any increase over 3% is unreasonable.

Updated agency meeting requirements to allow participation via interactive technology (video conferencing) while ensuring at least one member is physically present and all votes are recorded by roll call.

SCOPE

Removed exemptions from the opportunity-to-purchase provisions for sales to family members (spouses, children, parents, grandparents) and certain transfers between joint tenants or partners.

Deleted a large section of the bill (Sections 17 through 26) which likely contained repealed or superseded text, streamlining the final version of the legislation.

DEFINITION

Added a new definition for 'lived-experience engagement' to exempt income earned from community reviewing or feedback gathering from being counted as income for public assistance eligibility.

TIMELINE

Extended the reporting requirements for housing infrastructure bond debt service through 2049, covering various bond series issued between 2015 and 2028.

2nd Engrossment → 1st Unofficial Engrossment · 7 edits · May 7, 2026

MODERATE

This bill significantly overhauled Minnesota's housing laws, replacing a budget-focused version with a comprehensive reform package. The changes shift the focus from simple funding allocations to strict regulations on manufactured home parks, including new rules on rent increases, utility billing, and digital payment platforms. It also introduces stronger protections for residents against eviction and establishes a formal 'opportunity to purchase' process for manufactured home communities.

Scope change

The bill's scope expanded from a supplemental budget act to a broad regulatory framework affecting manufactured home parks, housing finance agency operations, and tax credit programs.

ELIGIBILITY

Replaced a specific budget appropriation for workforce housing with a new tax credit program that requires 50% of credits to be reserved for projects in Greater Minnesota.

REQUIREMENT

Mandated that manufactured home parks limit rent increases to one per 12-month period, presuming any increase over 3% is unreasonable unless proven otherwise.

Required park owners to offer residents alternative payment methods (like cash or checks) and prohibited charging fees for using these alternatives.

Established a formal process requiring park owners to notify residents and the state agency before selling the park, giving residents a 60-day window to submit a purchase offer.

Required park owners to provide detailed financial disclosures to residents upon request, including utility costs, insurance premiums, and total park income.

ENFORCEMENT

Created strong eviction protections, making it an affirmative defense for landlords if they evict a resident due to payment delays caused by digital platform outages.

DEFINITION

Added specific definitions for terms like 'Greater Minnesota,' 'Metropolitan area,' and 'Digital payment platform' to clarify regulatory application.

1st Engrossment → 2nd Engrossment · 3 edits · Apr 27, 2026

MINOR

The bill was updated from the 1st to the 2nd engrossment, reflecting a change in the posting date from April 20, 2026, to May 7, 2026. A key substantive change requires the transfer of $22.3 million from the housing development fund to the general fund to occur on or before June 29, 2026, rather than strictly on that date. Additionally, the reporting requirement for the housing agency was modified to track fees and charges paid into the fund instead of those appropriated to the agency.

Scope change

The bill's scope regarding the housing development fund remains the same, but the timeline for a specific financial transfer was adjusted to allow for earlier execution.

TIMELINE

The deadline for transferring $22.3 million from the housing development fund to the general fund was changed from a fixed date to 'on or before' June 29, 2026, providing flexibility in timing.

REQUIREMENT

The annual report requirement for the housing agency was updated to report on fees and charges paid into the housing development fund, rather than fees appropriated to the agency.

TECHNICAL

The bill version was updated from 1st Engrossment to 2nd Engrossment, and the posting date was updated to reflect the new version.

Introduction → 1st Engrossment · 6 edits · Apr 20, 2026

MODERATE

The bill was renumbered and updated from its introduction to its first engrossment, reflecting significant substantive changes. The most critical update is a major increase in housing funding, raising the total appropriation to $101.1 million and specifically boosting workforce housing funding from $2 million to $22 million. The bill also introduces a new one-time $150,000 grant program for seniors in three specific counties to share spare rooms with adults in need, and it adds a new exemption ensuring income from 'lived-experience engagement' does not disqualify individuals from public assistance.

Scope change

The bill's scope expanded to include a new specific pilot program for senior housing sharing and a new statutory exemption for income derived from lived-experience engagement in public policy.

FISCAL

Total housing appropriation increased from $82.8 million to $101.1 million, and workforce housing funding increased from $2 million to $22 million.

A new one-time $150,000 appropriation was created for the 'Minnesota Nice HomeShare' pilot program to help seniors in Lake, St. Louis, and Washington counties.

ELIGIBILITY

Income received from 'lived-experience engagement' (such as serving as a community reviewer or providing feedback) is now exempt from counting as income or assets for public assistance eligibility.

REQUIREMENT

The agency must now annually distribute earnings from investments of state appropriations to their original programs, rather than retaining them indefinitely.

The agency is now required to notify legislative committee chairs before transferring unencumbered balances between accounts or before retaining appropriated funds.

TIMELINE

The bond authorization limit was reduced from $400 million to $100 million, and the schedule for transferring bond proceeds to the housing fund was adjusted to begin in 2028 instead of 2026.

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