Housing and redevelopment agencies authorized to utilize certain long-term equity investment authority, and investment types in which a qualifying government may invest modified.

This bill allows Minnesota housing and redevelopment agencies to invest their funds in specific types of long-term equity investments, expanding their investment options beyond traditional state board investments. The legislation permits these agencies to invest in index mutual funds tied to broad U.S. equity markets and in shares of companies registered with the SEC that focus on investment-grade fixed income securities and hold at least 80 percent of their assets in federally insured or guaranteed securities. To use this authority, local governing bodies must adopt a resolution or investment policy acknowledging the risk of loss, understanding the specific funds being invested, and certifying that all designated funds meet state board requirements. The changes apply to housing and redevelopment authorities in counties or cities that meet existing qualification criteria and take effect immediately upon enactment.