MN SF1752

Establishes a local affordable housing aid program funded through general fund appropriations of $210 million annually for counties and $60 million annually for cities, effective beginning with aids payable in calendar year 2024.

Distributes aid to counties based on a formula providing each county $6,000 plus a proportional share based on cost-burdened households, and distributes aid to cities based on their proportion of cost-burdened households within Minnesota cities.

Requires the Minnesota Housing Finance Agency to award grants of at least $25,000 to local governments that do not qualify for direct distribution, with priority given to areas with higher proportions of cost-burdened households.

Limits eligible projects to construction, acquisition, rehabilitation, financing, and gap financing for affordable housing serving households at or below 115 percent of median income for homeownership or 80 percent of median income for rental housing.

Imposes spending requirements that unspent funds must be returned to the commissioner of revenue by December 31 in the third year following receipt, with annual reporting requirements beginning in 2025 and penalties for non-compliance including suspension of future distributions.