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SF 5067

Homeownership opportunity fund establishment, community and household stability fund establishment, rental opportunity fund establishment, increasing the sales and use tax rate by three-eighths of one percent, appropriating money to deposit in the funds, councils establishment to direct fund expenditures

2025-2026 Regular Session Introduced by Ron Latz

The bill creates three housing funds funded by a 0.375% sales tax increase to expand homeownership, stability, and rental opportunities in Minnesota.

Referred to Housing and Homelessness Prevention
#appropriations #councils #housingandhousingfinanceagency #taxation-gambling #taxation-salesanduse
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Bill Summary · SF 5067

Summary of Minnesota SF 5067 (2025-2026 Session)

Overview

SF 5067 proposes establishing three targeted funds to support homeownership, community and household stability, and rental opportunities. The bill also proposes increasing the statewide sales and use tax rate by three-eighths of one percent (0.375%), and appropriating revenue to the newly created funds. It includes provisions for councils to direct expenditures from these funds.

  • Jurisdiction: Minnesota
  • Title focus: Establishment of Homeownership Opportunity Fund, Community and Household Stability Fund, and Rental Opportunity Fund; sales and use tax rate increase; appropriation of money to the funds; establishment of councils to direct fund expenditures
  • Introduced: 2026-04-09 (First Reading)
  • Referred to: Housing and Homelessness Prevention
  • Sponsor: Co-sponsor Ron Latz

Key Provisions

1) Tax Change

  • Sales and Use Tax Increase: The bill proposes increasing Minnesota’s sales and use tax rate by 3/8 of 1 percent (0.375 percentage points).
  • Revenue Allocation: The increased revenue is designated for the three new funds created by the bill, directing funds toward housing-related initiatives.

2) Funds Established

SF 5067 establishes three distinct funds designed to address different housing and stability needs:

  • Homeownership Opportunity Fund

    • Purpose: To support programs and activities that promote and expand homeownership opportunities for Minnesotans.
    • Potential uses (as inferred from fund title): down payment assistance, mortgage support, homebuyer education, and other barriers to homeownership.

  • Community and Household Stability Fund

    • Purpose: To foster stability within households and communities, potentially addressing housing insecurity, eviction prevention, rental assistance, utility support, and related stabilization measures.
    • Potential uses (inferred): short- to medium-term financial assistance, case management, and services that reduce housing disruption.

  • Rental Opportunity Fund

    • Purpose: To enhance access to rental housing opportunities and improve rental market conditions.
    • Potential uses (inferred): rental subsidies, security deposits, landlord-tenant mediation, and programs expanding affordable rental options.

3) Expenditure Governance

  • Councils to Direct Expenditures: Each fund is expected to have a council or similar governance body charged with directing how the funds are spent, including setting priorities and approving programs.
  • Administrative Structure: The bill designates organized oversight to ensure funds are used for the intended housing outcomes and to monitor effectiveness.

Who Would Be Affected

  • General Public / Households: Minnesotans seeking homeownership or rent affordability could benefit from programs funded by these new sources.
  • Renters and Homebuyers: Direct beneficiaries of subsidies, down payment assistance, eviction prevention, and rental support programs.
  • Housing Sector: Landlords, property managers, and housing developers may participate in or be affected by rental and homeownership initiatives and incentive programs.
  • Taxpayers: Broad tax base participants would experience an increased sales and use tax rate to fund these programs.

Procedural and Timeline Notes

  • Introduction and First Reading: April 9, 2026.
  • Committee Assignment: Referred to the Housing and Homelessness Prevention committee for consideration.
  • Next Steps: The bill would proceed through committee hearings, potential amendments, and votes in each chamber, followed by floor votes and reconciliation if needed before final passage and delivery to the governor.

Potential Implications

  • Fiscal Impact: Material tax rate increase to fund housing-oriented programs; actual fiscal impact depends on the enacted rate and elasticity of consumption.
  • Program Impact: If enacted, three dedicated funds with governance councils could centralize and focus funding on homeownership, stability, and rental opportunities, potentially altering access to housing support in Minnesota.
  • Policy Emphasis: The bill signals a policy emphasis on expanding homeownership access, stabilizing households, and increasing rental opportunities through state-supported financing and programs.

Note

As of the current status, SF 5067 is in the introductory phase and has not yet undergone committee hearings or floor amendments. Further analysis would be possible with the bill’s full text, including detailed definitions, funding amounts, allocation formulas, sunset clauses, and governance structure for the councils.

Compiled from official sources — confirm details with the bill’s official record.

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