MN HF4269

$170,000,000 appropriated in fiscal year 2023 from general fund to Housing Finance Agency for grant to Midwest Minnesota Community Development Corporation (MMCDC) to establish a first-generation homebuyers down payment assistance fund as a pilot project.

Eligible first-generation homebuyers must have income at or below 100 percent of area median income, be first-time homebuyers, be preapproved for a first mortgage, have parents or prior legal guardians who never owned a home, and complete an approved homebuyer education course before purchase.

Assistance limited to 10 percent of home purchase price, not exceeding $30,000 per borrower, provided as a loan forgivable at 20 percent per year; balance becomes due if property converts to non-owner occupancy, is sold, refinanced ineligibly, subjected to unauthorized title transfer, or foreclosed within five years.

MMCDC administers the statewide fund and may authorize other community development financial institutions, Tribal entities, and nonprofit organizations to originate and service loans, with administrative costs not exceeding $3,000 per loan.

MMCDC must submit annual reports by January 15 detailing number and amount of loans closed, median loan amount, loan distribution by race/ethnicity and county, home purchase prices, and mortgage types; program sunsets July 1, 2025.