MN SF4875

Adds "supportive services for residents" to the stated purpose of the local affordable housing aid program to help keep families from losing housing and assist those experiencing homelessness.

Defines "locally funded housing expenditures" to include costs funded from general funds, property tax levies, or unrestricted money spent on activities such as rental assistance, down payment assistance, shelter operations, and housing acquisition or construction.

Requires aid recipients to commit to maintaining locally funded housing expenditures at a level not less than the average level maintained for the three preceding fiscal years as a condition of receiving aid.

Establishes annual reporting requirements beginning in 2025 requiring tier I cities and counties to submit reports to the Minnesota Housing Finance Agency documenting unspent funds, completed projects, and locally funded housing expenditures for the three prior fiscal years.

Requires cities and counties that fail to meet the maintenance of effort requirement to repay funds to the Minnesota Housing Finance Agency by May 15, with repaid funds redirected to homeless prevention, housing development, and workforce homeownership programs.