Minnesota2026Passed Legislature
HF4186
New Rules for Housing Agency Investments
Last scannedAug 22, 2026, 3:39 AM
In one sentence
This law allows housing and redevelopment agencies to invest in specific types of U.S.-registered companies that focus on fixed income securities and support local multifamily housing.
What it does
- Allows qualifying governments to buy shares in U.S. registered companies focused on investment grade fixed income securities.
- Requires these companies to hold at least 80 percent of their investments in federally insured or guaranteed assets, including those from government-sponsored entities.
- Mandates that the company must have a mission, in part, to provide direct investment in local multifamily housing development.
- Permits housing and redevelopment authorities meeting specific criteria to use this new investment option.
- Updates approval rules so agencies can adopt an investment policy instead of just a resolution before investing.
Who it affects
- Housing and redevelopment authorities in counties or statutory or home rule charter cities
- Qualifying governments managing public funds
Limits and unknowns
- The law states that these investments carry a risk of loss.
- Agencies must follow specific rules set by the Minnesota State Board of Investment if they use its services.
- Only agencies meeting certain criteria listed in existing laws can access this new investment option.
Plain language
Terms to know
- Multifamily housing development
- Projects that create multiple separate homes, such as apartment complexes.
- Fixed income securities
- Investments like bonds where the investor receives regular payments of a fixed amount.
Official record
Sources
Official summary
Housing and redevelopment agencies authorized to utilize certain long-term equity investment authority, and investment types in which a qualifying government may invest modified.
Official activity
Bill history
- See Senate file in House SF4367House
- Author added VirnigHouse
- Introduction and first reading, referred to Elections Finance and Government OperationsHouse