MN HF4819

Defines "distressed building" as existing rental housing restricted to households at or below 60 percent of area median income that is in foreclosure, has negative operating income for two or more years, has debt service coverage ratio below one for two or more years, or has repair costs exceeding available reserves.

Defines "recapitalization" as financing for physical and financial needs of distressed buildings including debt restructuring, principal and interest paydown, deferred maintenance, capital improvements, and supportive services funding.

Expands housing infrastructure bonds to finance recapitalization of distressed buildings and adds taxable bonds as eligible financing mechanism alongside existing qualified 501(c)(3) bonds and tax-exempt bonds.

Requires 50 percent of housing infrastructure bond awards exceeding $20,000,000 between July 1, 2024, and June 30, 2033, to be allocated for recapitalization, with at least $50,000,000 of the $100,000,000 appropriation designated for recapitalization.

Establishes 11-member task force to evaluate low-income housing tax credit and housing infrastructure bond award processes, with final recommendations due by April 30, 2025, and requires agency to process recapitalization applications on rolling basis with approval within 60 days and funding closure within 120 days.