MN HF3982

Establishes a local affordable housing aid program to help local governments develop and preserve affordable housing, prevent family homelessness, and assist those experiencing homelessness.

Distributes $80,000,000 annually to counties and $20,000,000 annually to cities based on the proportion of cost-burdened households (those spending over 30 percent of income on housing), with each county receiving a minimum of $15,000.

Eligible projects include construction, acquisition, rehabilitation, demolition, and financing of housing for households earning up to 115 percent of median income for homeownership and 80 percent for rental housing, with housing affordable to the local workforce.

Requires cities and counties to spend funds within three years and submit annual reports to the Minnesota Housing Finance Agency beginning in 2024, with penalties for non-compliance including repayment requirements and potential loss of future funding.

Takes effect beginning with aids payable in calendar year 2023.