MN SF4298

Appropriates $50,000,000 in fiscal year 2021 from the general fund to the Minnesota Housing Finance Agency for loans or grants to preserve Naturally Occurring Affordable Housing (NOAH) properties at risk of increased rents.

Funding applicants must demonstrate sufficient capital and reserves to maintain the property for at least 15 years and must maintain one of three affordability levels via deed restriction for that period.

Loan or grant recipients must accept Section 8 vouchers if subsidy payment standards are no more than 5 percent below marketplace rent, and may receive up to 40 percent of acquisition costs but no more than $50,000 per rental unit.

Loans may have terms up to 15 years at no- or low-interest rates, and the agency or statewide intermediary may prioritize applications that reserve at least 15 units for homeless households.

Appropriation is available until June 30, 2023, and recipients must report required information to the administering agency or intermediary.