Local public housing program funding provided, bonds issued, and money appropriated.

2025-2026 Regular Session Introduced by Esther Agbaje

Provides $15 million for Local Public Housing capital projects via state bonds now and a $15 million general fund appropriation in FY 2027.

Introduction and first reading, referred to Capital Investment

#appropriations #bonds #housingandhousingfinanceagency

Purpose and intent

HF 5068 seeks to support the Local Public Housing Program by providing capital funding through bonded indebtedness and by making a future general fund appropriation. The bill authorizes a state bond sale to finance a $15 million appropriation for qualified capital projects under the Local Public Housing Program (Minnesota Statutes, § 462A.44) and establishes a corresponding annual appropriation from the general fund in a subsequent fiscal year.

Key provisions

Section 1: Local Public Housing Program – Bond-funded appropriation

Appropriation amount: $15,000,000 is appropriated from the Bond Proceeds Fund to the Minnesota Housing Finance Agency (MHFA) for the Local Public Housing Program under Minnesota Statutes, § 462A.44.

Use of funds: The $15 million must be used for qualified capital projects under the Local Public Housing Program.

Bond sale authorization: To provide the funds, the Commissioner of Management and Budget must sell and issue state bonds up to $15,000,000, in accordance with Minnesota law (Minnesota Statutes, §§ 16A.631 to 16A.675) and the Minnesota Constitution (Art. XI, §§ 4–7).

Effective date: The section becomes effective the day after final enactment.

Section 2: Local Public Housing Program – General fund appropriation

Future appropriation: $15,000,000 in FY 2027 is appropriated from the General Fund to the MHFA for the Local Public Housing Program under Minnesota Statutes, § 462A.44.

Effect on entities and stakeholders

Minnesota Housing Finance Agency (MHFA): Receives authority and funding (via bond proceeds and future general fund appropriation) to finance qualified capital projects under the Local Public Housing Program.

State of Minnesota (financing authorities): Authorized to issue up to $15 million in state bonds to fund the appropriation, subject to statutory bonding provisions and constitutional debt limits.

Local public housing projects: Potential beneficiaries of capital improvements funded through the Local Public Housing Program, funded by these new appropriations.

Procedural and timeline aspects

Bonding process: The bill mandates a bond sale up to $15 million, following state bonding statutes and constitutional provisions.

Effective timing: Section 1 becomes effective the day after final enactment; Section 2 specifies an FY 2027 general fund appropriation.

Introduced and referred: The bill was introduced on 2026-04-23 and referred to Capital Investment. Co-sponsor: Esther Agbaje.

Summary of impact

Provides a targeted $15 million in capital funding for local public housing projects through MHFA, financed via state bonds and a future general fund appropriation.

Establishes a two-pronged funding approach: immediate bond-backed funding and a stated FY 2027 general fund appropriation, enabling planning and execution of capital improvements in local housing.

Expands MHFA’s capacity to support capital projects under the Local Public Housing Program and may influence local housing development timelines through secured capital for qualified projects.

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