MN HF4555

Adds "supportive services for residents" to the purpose of the local affordable housing aid program under Minnesota Statutes section 477A.35.

Defines "locally funded housing expenditures" to include expenditures from general funds, property tax levies, or unrestricted money for qualifying activities such as rental assistance, down payment assistance, housing construction/rehabilitation, and emergency shelter operations.

Requires aid recipients to prioritize projects serving households at or below 80 percent of area median income for homeownership and 50 percent for rental housing, with flexibility to prioritize projects reducing homelessness, housing cost burden, or housing instability.

Establishes a maintenance of effort requirement as a condition of receiving aid, requiring recipients to maintain locally funded housing expenditures at levels not less than the average of the three preceding fiscal years.

Adds annual reporting requirements beginning in 2025, with penalties including fund repayment if recipients fail to spend funds timely, spend on non-qualifying projects, fail to report, or fail to meet maintenance of effort requirements.