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HF 4901

Minneapolis Public Housing Authority bonds issued for the Glendale Townhomes development project.

2025-2026 Regular Session Introduced by Mohamud Noor

Authorizes up to $7 million in housing infrastructure bonds to fund a MPHA grant for Glendale Townhomes redevelopment, with annual debt service transfers from the General Fund.

Introduction and first reading, referred to Housing Finance and Policy
#bonds #citiesandtowns-specific #housingandhousingfinanceagency
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Bill Summary · HF 4901

Bill Summary: HF 4901 (Minnesota 2025-2026) — Glendale Townhomes Bonds for Minneapolis Public Housing Authority

Purpose and intent

  • Authorizes the issuance of housing infrastructure bonds (HIBs) to finance a grant to the Minneapolis Public Housing Authority (MPHA) for the redevelopment of the Glendale Townhomes in Minneapolis.
  • Adds a new subdivision to Minnesota Statutes, enabling up to $7,000,000 in HIBs to be issued for this purpose, with proceeds awarded as a grant to MPHA or affiliated entities in which MPHA has an ownership or management interest.
  • Clarifies the relationship between bond issuance, debt service, and annual transfers to the HIB account to support debt service.

Key provisions and changes

  • Section 1 (New Subdivision in §462A.37):

    • Authorization of up to $7,000,000 in housing infrastructure bonds (in one or more series) whose payments may be pledged to service these bonds.
    • Proceeds must be awarded as a grant to MPHA or to entities in which MPHA has an ownership interest or serves as managing member or general partner, for the Glendale Townhomes redevelopment project in Minneapolis.
    • Effective date: day after enactment.

  • Section 2 (Amendments to §462A.37, Subd. 5 – Additional appropriation):

    • Annual certification requirement: the agency must certify the actual annual debt service for each bond series.
    • Transfer mechanism: various annual transfers (from the General Fund via the Commissioner of Management and Budget) to the Housing Infrastructure Bond Account to cover debt service. The statute enumerates a series of, and deadlines for, transfers tied to outstanding bonds in different subdivisions (2a through 2l), each with specified start years, end years, and transfer limits (e.g., up to $6,400,000 annually; $800,000 annually; $2,800,000 annually; and continued transfers as bonds remain outstanding).
    • The transfers are appropriated from the General Fund to the Commissioner of Management and Budget to fund debt service.
    • The agency may pledge to the payment of the HIBs the payments that the state would otherwise make under this section (i.e., pledge of future state payments to bondholders is allowed).

  • Effective date: day after final enactment.

Who would be affected

  • Minneapolis Public Housing Authority (MPHA): would receive a grant financed by HIB proceeds for Glendale Townhomes redevelopment and would be involved as the beneficiary and/or managing entity for the funding.
  • Minnesota Department of Management and Budget (MDMB) and the state General Fund: affected via annual debt service certifications and mandatory transfers to the HIB account to support bond debt service.
  • Glendale Townhomes redevelopment project: the primary project financed by the grant, with potential implications for residents, construction activity, and long-term affordability outcomes.
  • Bondholders and lenders: would be impacted by the availability of dedicated state debt service transfers and the secured bond payments.

Procedural and timeline aspects

  • First reading and referral to the House Committee on Housing Finance and Policy occurred on April 9, 2026.
  • The bill follows the canonical legislative path for authorizing state-backed bonds and establishing annual debt service transfers, with annual certifications to the budget office and scheduled transfers if bonds remain outstanding (from 2015–2049/2048/2049 ranges depending on subdivision; the bill’s allocations extend over multiple decades).
  • Effective date is the day after enactment.

Bottom line

HF 4901 would authorize up to $7 million in housing infrastructure bonds to fund a MPHA grant for Glendale Townhomes redevelopment, with a structured framework for annual debt service certification and quarterly/annual transfers from the General Fund to the HIB account to ensure bond repayment. The bill codifies pledge rights and expands MPHA’s role in the project through potential ownership or management arrangements.

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

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