HF 2445 Minnesota House · 2025-2026 Regular Session

Housing finance bill.

HF 2445 is a budget bill appropriating $82.7 million annually for Minnesota's Housing Finance Agency for fiscal years 2026-2027. It allocates funds to existing housing programs, including $23 million for rent assistance, $10.3 million for family homeless prevention, $5.3 million for rental aid targeting individuals with mental illness, and $1.2 million specifically for American Indian housing projects. These funds support low-income renters, homeless families, and vulnerable populations through established state housing programs under Minnesota Statutes. The bill does not create new policies but provides mandatory funding for current housing assistance initiatives.

Bill status in committee 1 of 4 stages cleared

Introduction

Mar 2025

Committee Review

Floor Vote

Governor

Introduced Mar 17, 2025 Last action Apr 21, 2025

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What changed between versions

Introduction → 1st Engrossment · 10 edits · Apr 21, 2025

MAJOR

This bill significantly increases funding for the Minnesota Housing Finance Agency, raising the total budget from approximately $82.8 million to $158.7 million. The changes include new one-time appropriations for tenant education and an accessible housing task force, expanded bonding authority to issue up to $100 million in new bonds, and a repeal of the housing support account. Additionally, the bill introduces new reporting requirements and modifies eligibility criteria for homebuyer assistance programs.

Scope change

The bill's scope expanded to include new administrative bodies (Accessible Housing Task Force) and new funding mechanisms (housing infrastructure bonds), while removing the existing housing support account.

FISCAL

Total agency budget increased from $82.8 million to $158.7 million, with specific increases to workforce housing, manufactured home park grants, and rental assistance programs.

New $20 million one-time appropriation established for a statewide tenant education and hotline service providing legal advice to renters.

New $150,000 one-time appropriation created to administer a new Accessible Housing Task Force.

Authority added to issue up to $100 million in new housing infrastructure bonds to fund affordable housing projects.

The Housing Support Account was repealed, and any remaining unencumbered funds must be transferred to the general fund by June 15, 2025.

The maximum down payment assistance for first-generation homebuyers was increased from a fixed $32,000 cap to 10% of the median home sales price starting in fiscal year 2027.

ELIGIBILITY

Eligibility for the community-based first-generation homebuyers program was expanded to include any adult person who is preapproved for a mortgage and whose parent or guardian never owned a home or lost a home to foreclosure.

REQUIREMENT

New reporting requirements mandate quarterly reports on the financial stability of the affordable housing industry, including operating expense ratios and rent collection rates by region.

New criteria were established to prioritize funding for jurisdictions that allow multifamily housing in 75% of commercial zones and have relaxed parking and lot size mandates.

TIMELINE

New effective dates were set for the repeal of the housing support account (June 30, 2025) and the new reporting requirements (January 5, 2026).

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 21, 2025

Lower · Passed

Committee report, to adopt as amended and re-refer to Ways and Means

lower

Mar 17, 2025

Introduced

Introduction and first reading, referred to Housing Finance and Policy

lower

1 primary · 1 co-sponsor