Housing and redevelopment agencies authorized to utilize certain long-term equity investment authority, and investment types in which a qualifying government may invest modified.

A bill for an act

relating to local government; authorizing housing and redevelopment agencies to

utilize certain long-term equity investment authority; modifying investment types

in which a qualifying government may invest; amending Minnesota Statutes 2024,

section 118A.09, subdivisions 2, 4, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 118A.09, subdivision 2, is amended to read:

Subd. 2.

Additional investment authority.

Qualifying governments may invest the

amount described in subdivision 3:

(1) in index mutual funds based in the United States and indexed to a broad market

United States equity index, on the condition that index mutual fund investments must be

made directly with the main sales office of the fund;
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or
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(2)
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in shares of a company that:
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(i) is registered with the United States Securities and Exchange Commission;

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(ii) concentrates in investment grade fixed income securities;

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(iii) holds, at the time of purchase, at least 80 percent of its investments in federally

insured or guaranteed securities, including by government sponsored entities; and

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(iv) has a mission, in part, to provide direct investment in local multifamily housing

development; or

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(3)
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with the Minnesota State Board of Investment subject to such terms and minimum

amounts as may be adopted by the board.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 2.

Minnesota Statutes 2024, section 118A.09, is amended by adding a subdivision to

read:

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Subd. 3a.

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Housing and redevelopment authorities; investment authority.

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A housing

and redevelopment authority created in a county or statutory or home rule charter city that

meets the criteria of subdivision 1, paragraph (a), clause (1) or (2), may invest its funds in

investments that meet the criteria of subdivision 2, clause (2), subject to the limitations and

requirements for qualifying governments under subdivisions 3 and 4.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 3.

Minnesota Statutes 2024, section 118A.09, subdivision 4, is amended to read:

Subd. 4.

Approval.

Before investing pursuant to this section, the governing body of the

qualifying government must adopt a resolution
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or investment policy
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that includes the

following statements:

(1) the governing body understands that investments under subdivision 2 have a risk of

loss;

(2) the governing body understands the type of funds that are being invested and the

specific investment itself; and

(3) the governing body certifies that all funds designated for investment through the

State Board of Investment meet the requirements of this section and the policies and

procedures established by the State Board of Investment.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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