Housing development fund expenditure provisions modified, and allowed expenditures for the Minnesota Housing Finance Agency repealed.

This bill modifies how the Minnesota Housing Finance Agency manages its Housing Development Fund by updating rules on how money enters the fund and how it can be moved between different programs. Specifically, it clarifies that state funds must be tracked in separate accounts and allows the agency to transfer unused balances between loan and grant programs, while also repealing older statutes that listed specific allowable uses for the fund. The legislation removes the ability of the agency to make certain capacity-building grants and spend money on rental housing and full-cycle home ownership services without specific appropriations. These changes directly affect the Minnesota Housing Finance Agency and the specific housing programs it administers by tightening financial controls and limiting discretionary spending options.