Plain English Breakdown
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SF5067 • 2026
Homeownership opportunity fund establishment, community and household stability fund establishment, rental opportunity fund establishment, increasing the sales and use tax rate by three-eighths of one percent, appropriating money to deposit in the funds, councils establishment to direct fund expenditures
Homeownership opportunity fund establishment, community and household stability fund establishment, rental opportunity fund establishment, increasing the sales and use tax rate by three-eighths of one percent, appropriating money to deposit in the funds, councils establishment to direct fund expenditures
Housing
Taxes
Passed Legislature
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Bill History
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2026-04-09
House
Introduction and first reading
Official Summary Text
Homeownership opportunity fund establishment, community and household stability fund establishment, rental opportunity fund establishment, increasing the sales and use tax rate by three-eighths of one percent, appropriating money to deposit in the funds, councils establishment to direct fund expenditures
Current Bill Text
Read the full stored bill text
A bill for an act relating to housing; creating a homeownership opportunity fund, a community and household stability fund, and a rental opportunity fund; increasing the sales and use tax rate by three-eighths of one percent; appropriating money for deposit in the funds; creating councils to direct fund expenditures; providing appointments; requiring reports; amending Minnesota Statutes 2024, sections 297A.62, subdivision 1; 297A.65; 297F.25, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 256K; 462A. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. new text begin [256K.50] COMMUNITY AND HOUSEHOLD STABILITY FUND. new text end new text begin Subdivision 1. new text end new text begin Fund. new text end new text begin The community and household stability fund is established. All money earned by the fund must be credited to the fund. new text end new text begin Subd. 2. new text end new text begin Purpose. new text end new text begin The fund is established to help Minnesotans improve the condition of homes and communities and prevent homelessness and displacement from homes. new text end new text begin Subd. 3. new text end new text begin Appropriation; expenditures. new text end new text begin (a) $....... is appropriated annually from the general fund to the commissioner for use under this section. new text end new text begin (b) Amounts in the fund may be spent for: new text end new text begin (1) emergency assistance for households or individuals that are homeless or at risk of homelessness or displacement; new text end new text begin (2) legal services for households or individuals that are homeless or at risk of homelessness or displacement; new text end new text begin (3) outreach services for households or individuals that are homeless or at risk of homelessness or displacement; new text end new text begin (4) funding the operation of emergency shelters; and new text end new text begin (5) financing the acquisition, rehabilitation, adaptive reuse, or new construction of property to serve as emergency shelter, transitional housing, or permanent supportive housing. new text end new text begin Subd. 4. new text end new text begin Audit. new text end new text begin The legislative auditor must audit fund expenditures to ensure that the money is spent for the purposes for which it is dedicated and for which the money was appropriated. new text end new text begin Subd. 5. new text end new text begin Prevailing wages. new text end new text begin Contracts for projects funded by this fund must meet the requirements of contracts for state projects, as established in section 177.43. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2026. new text end Sec. 2. new text begin [256K.51] COMMUNITY AND HOUSEHOLD STABILITY COUNCIL. new text end new text begin Subdivision 1. new text end new text begin Establishment. new text end new text begin A Community and Household Stability Council is created to advise on the administration and implementation of the community and household stability fund under section 256K.50. The Housing Finance Agency must provide administrative support for the council. The members of the council must elect a chair from the voting members of the council. new text end new text begin Subd. 2. new text end new text begin Membership; appointment. new text end new text begin (a) Three members of the house of representatives, including two members from the majority party, appointed by the speaker of the house, and one member from the minority party, appointed by the minority leader, must serve at the pleasure of the appointing authority as nonvoting members of the council. Three members of the senate, including two members from the majority party and one member from the minority party, appointed according to the rules of the senate, must serve at the pleasure of the appointing authority as nonvoting members of the council. new text end new text begin (b) Twenty-four voting members must be appointed and must include: new text end new text begin (1) one representative of a labor union; new text end new text begin (2) the commissioner of the Housing Finance Agency; new text end new text begin (3) four representatives of organizations that work directly with under-resourced or underrepresented communities; new text end new text begin (4) four members who receive or previously received support services, emergency rental assistance, or homeless prevention services; new text end new text begin (5) two members representing a Tribal government; new text end new text begin (6) one member elected to or appointed by the governing body of a local government; new text end new text begin (7) one member that represents either a public housing authority or a housing and redevelopment authority; and new text end new text begin (8) one member representing the Council on Disability. new text end new text begin (c) Appointments must be made as follows: the governor, the senate majority leader, and the speaker of the house must each in turn appoint members required under paragraph (b) until 12 appointments have been made. The governor must appoint an additional eight members, ensuring that any outstanding requirements under paragraph (b) are satisfied. The house minority leader and the senate minority leader must then each appoint two members. Members appointed under this paragraph must not be registered lobbyists or legislators. new text end new text begin (d) Appointing authorities must ensure that appointees represent a diversity of backgrounds, including racial, ethnic, socioeconomic, and geographic backgrounds. new text end new text begin Subd. 3. new text end new text begin Conflict of interest. new text end new text begin A council member may not participate in or vote on a decision of the council relating to an organization in which the member has either a direct or indirect personal financial interest. While serving on the council, a member must avoid any potential conflict of interest. new text end new text begin Subd. 4. new text end new text begin Terms; compensation; removal. new text end new text begin The terms of members representing the state agencies are four years and are coterminous with the governor. The terms of other nonlegislative members of the council must be as provided in section 15.059, subdivision 2. Members may serve until their successors are appointed and qualify. Compensation and removal of nonlegislative council members is as provided in section 15.059, subdivisions 3 and 4. Compensation of legislative members is as determined by the appointing authority. The Department of Human Services may reimburse legislative members for expenses. A vacancy on the council may be filled by the appointing authority provided in subdivision 2 for the remainder of the unexpired term. new text end new text begin Subd. 5. new text end new text begin Strategic plan. new text end new text begin The council must adopt a strategic plan for recommending policy changes and making expenditures from the community and household stability fund that further the purpose in section 256K.50, subdivision 2, including identifying the priority areas for funding for the next six years. The council must issue a revised plan by December 1 each even-numbered year. The strategic plan must have clearly stated short- and long-term goals and strategies for fund expenditures, must provide measurable outcomes for expenditures, and must determine areas of emphasis for funding. The council's strategic plan must detail how the council will engage impacted individuals and communities and ensure council recommendations support the fund's purpose and the intention to reduce disparities, support community-based solutions, improve the condition of homes, increase accessibility, and improve energy and water efficiency. new text end new text begin Subd. 6. new text end new text begin Recommended appropriations. new text end new text begin The Community and Household Stability Council must recommend to the governor and the legislature the manner in which money from the community and household stability fund should be appropriated for the purposes stated in section 256K.50. new text end new text begin Subd. 7. new text end new text begin Reports to legislature. new text end new text begin (a) By January 15 of each odd-numbered year, the council must submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over housing, homelessness, and taxes on the activities for which money has been or will be spent for the current biennium and the activities for which money is recommended to be spent in the next biennium. new text end new text begin (b) By January 15 of each even-numbered year, the council may submit to the legislature supplemental recommendations on the manner in which money from the community and household stability fund should be appropriated in the next fiscal year. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2026. new text end Sec. 3. Minnesota Statutes 2024, section 297A.62, subdivision 1, is amended to read: Subdivision 1. Generally. Except as otherwise provided in subdivision 3 or in this chapter, a sales tax of deleted text begin 6.5 deleted text end new text begin 6.875 new text end percent is imposed on the gross receipts from retail sales as defined in section 297A.61, subdivision 4 , made in this state or to a destination in this state by a person who is required to have or voluntarily obtains a permit under section 297A.83, subdivision 1 . new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after June 30, 2026. new text end Sec. 4. Minnesota Statutes 2024, section 297A.65, is amended to read: 297A.65 LOTTERY TICKETS; IN LIEU TAX. Sales of State Lottery tickets are exempt from the tax imposed under section 297A.62 . The State Lottery must on or before the 20th day of each month transmit to the commissioner of revenue an amount equal to the gross receipts from the sale of lottery tickets for the previous month multiplied by deleted text begin the tax rate under section 297A.62, subdivision 1 deleted text end new text begin 6.5 percent new text end . The resulting payment is in lieu of the sales tax that otherwise would be imposed by this chapter. The commissioner shall deposit the money transmitted as provided by section 297A.94 and the money must be treated as other proceeds of the sales tax. For purposes of this section, "gross receipts" means the proceeds of the sale of tickets before deduction of a commission or other compensation paid to the vendor or retailer for selling tickets. new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after June 30, 2026. new text end Sec. 5. Minnesota Statutes 2024, section 297F.25, subdivision 1, is amended to read: Subdivision 1. Imposition. (a) A tax is imposed on distributors on the sale of cigarettes by a cigarette distributor to a retailer or cigarette subjobber for resale in this state. The tax is equal to deleted text begin the combined tax rate under section 297A.62 deleted text end new text begin 6.875 percent new text end , multiplied by the weighted average retail price and must be expressed in cents per pack rounded to the nearest one-tenth of a cent. The weighted average retail price must be determined annually, with new rates published by November 1, and effective for sales on or after January 1 of the following year. The weighted average retail price must be established by surveying cigarette retailers statewide in a manner and time determined by the commissioner. The commissioner shall make an inflation adjustment in accordance with the Consumer Price Index for all urban consumers inflation indicator as published in the most recent state budget forecast. The commissioner shall use the inflation factor for the calendar year in which the new tax rate takes effect. If the survey indicates that the average retail price of cigarettes has not increased relative to the average retail price in the previous year's survey, then the commissioner shall not make an inflation adjustment. The determination of the commissioner pursuant to this subdivision is not a "rule" and is not subject to the Administrative Procedure Act contained in chapter 14. For packs of cigarettes with other than 20 cigarettes, the tax must be adjusted proportionally. (b) Notwithstanding paragraph (a), and in lieu of a survey of cigarette retailers, the tax calculation of the weighted average retail price for the sales of cigarettes from August 1, 2011, through December 31, 2011, shall be calculated by: (1) increasing the average retail price per pack of 20 cigarettes from the most recent survey by the percentage change in a weighted average of the presumed legal prices for cigarettes during the year after completion of that survey, as reported and published by the Department of Commerce under section 325D.371 ; (2) subtracting the sales tax included in the retail price; and (3) adjusting for expected inflation. The rate must be published by May 1 and is effective for sales after July 31. If the weighted average of the presumed legal prices indicates that the average retail price of cigarettes has not increased relative to the average retail price in the most recent survey, then no inflation adjustment must be made. For packs of cigarettes with other than 20 cigarettes, the tax must be adjusted proportionally. new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after June 30, 2026. new text end Sec. 6. new text begin [462A.51] HOMEOWNERSHIP OPPORTUNITY FUND. new text end new text begin Subdivision 1. new text end new text begin Fund. new text end new text begin The homeownership opportunity fund is established. All money earned by the fund must be credited to the fund. new text end new text begin Subd. 2. new text end new text begin Purpose. new text end new text begin The fund is established to support Minnesotans and the communities in which they live, to eliminate racial disparities in homeownership, to ensure Minnesotans can accumulate wealth and assets, and to increase quality of life by helping more first-time home buyers afford and access homeownership. new text end new text begin Subd. 3. new text end new text begin Appropriation; expenditures. new text end new text begin (a) $....... is appropriated annually from the general fund to the commissioner for use under this section. new text end new text begin (b) Amounts in the fund may be spent for: new text end new text begin (1) financing the acquisition, rehabilitation, adaptive reuse, or new construction of property to serve as owner-occupied housing, including single-family housing, multifamily housing containing up to four units, housing on land leased by a community land trust, condominiums, and cooperatively owned housing, including cooperatively owned manufactured home parks; new text end new text begin (2) financing the conversion of rental property into owner-occupied property, including cooperatively owned housing and cooperatively owned manufactured home parks; new text end new text begin (3) down payment assistance; new text end new text begin (4) accessibility grants and loans for owner-occupied housing; new text end new text begin (5) financial assistance to borrowers who are delinquent on mortgage or contract for deed payments; and new text end new text begin (6) homeownership education, counseling, and training under section 462A.209. new text end new text begin Subd. 4. new text end new text begin Audit. new text end new text begin The legislative auditor must audit fund expenditures to ensure that the money is spent for the purposes for which it is dedicated and for which the money was appropriated. new text end new text begin Subd. 5. new text end new text begin Prevailing wages. new text end new text begin Contracts for projects funded by this fund must meet the requirements of contracts for state projects, as established in section 177.43. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2026. new text end Sec. 7. new text begin [462A.52] HOMEOWNERSHIP OPPORTUNITY COUNCIL. new text end new text begin Subdivision 1. new text end new text begin Establishment. new text end new text begin A Homeownership Opportunity Council is created to advise on the administration and implementation of the homeownership opportunity fund under section 462A.51. The Housing Finance Agency must provide administrative support for the council. The members of the council must elect a chair from the voting members of the council. new text end new text begin Subd. 2. new text end new text begin Membership; appointment. new text end new text begin (a) Three members of the house of representatives, including two members from the majority party, appointed by the speaker of the house, and one member from the minority party, appointed by the minority leader, must serve at the pleasure of the appointing authority as nonvoting members of the council. Three members of the senate, including two members from the majority party and one member from the minority party, appointed according to the rules of the senate, must serve at the pleasure of the appointing authority as nonvoting members of the council. new text end new text begin (b) Twenty-four voting members must be appointed and must include: new text end new text begin (1) the commissioner of the Housing Finance Agency; new text end new text begin (2) one member that represents either a public housing authority or a housing and redevelopment authority; new text end new text begin (3) one representative of a labor union; new text end new text begin (4) two members who purchased a Habitat for Humanity home; new text end new text begin (5) two members who purchased a community land trust home; new text end new text begin (6) two members who have been or are manufactured home park residents; new text end new text begin (7) two members who live in a cooperatively owned property; new text end new text begin (8) two representatives of organizations focused on producing new affordable homes for ownership; new text end new text begin (9) one representative of an organization that provides down payment assistance or home buyer preparation services to low-income households; new text end new text begin (10) two representatives of organizations that work directly with households on the path to homeownership; new text end new text begin (11) one member elected to or appointed by the governing body of a local government; new text end new text begin (12) two representatives of a Tribal government; new text end new text begin (13) one person with a disability or one disability advocate; and new text end new text begin (14) one person with practical experience or expertise with both housing and either energy or climate. new text end new text begin (c) Appointments must be made as follows: the governor, the senate majority leader, and the speaker of the house must each in turn appoint members required under paragraph (b) until 12 appointments have been made. The governor must appoint an additional eight members, ensuring that any outstanding requirements under paragraph (b) are satisfied. The house minority leader and the senate minority leader must then each appoint two members. Members appointed under this paragraph must not be registered lobbyists or legislators. new text end new text begin (d) Appointing authorities must ensure that appointees represent a diversity of backgrounds, including racial, ethnic, socioeconomic, and geographic backgrounds. new text end new text begin Subd. 3. new text end new text begin Conflict of interest. new text end new text begin A council member may not participate in or vote on a decision of the council relating to an organization in which the member has either a direct or indirect personal financial interest. While serving on the council, a member must avoid any potential conflict of interest. new text end new text begin Subd. 4. new text end new text begin Terms; compensation; removal. new text end new text begin The terms of members representing the state agencies are four years and are coterminous with the governor. The terms of other nonlegislative members of the council must be as provided in section 15.059, subdivision 2. Members may serve until their successors are appointed and qualify. Compensation and removal of nonlegislative council members is as provided in section 15.059, subdivisions 3 and 4. Compensation of legislative members is as determined by the appointing authority. The agency may reimburse legislative members for expenses. A vacancy on the council may be filled by the appointing authority provided in subdivision 2 for the remainder of the unexpired term. new text end new text begin Subd. 5. new text end new text begin Strategic plan. new text end new text begin The council must adopt a strategic plan for recommending policy changes and making expenditures from the homeownership opportunity fund that further the purpose in section 462A.51, subdivision 2, including identifying the priority areas for funding for the next six years. The council must issue a revised plan by December 1 of each even-numbered year. The strategic plan must have clearly stated short- and long-term goals and strategies for fund expenditures, must provide measurable outcomes for expenditures, and must determine areas of emphasis for funding. The council's strategic plan must detail how the council will engage impacted individuals and communities and ensure council recommendations support the fund's purpose and the intention to reduce disparities, support community-based solutions, improve the condition of homes, increase accessibility, and improve energy and water efficiency. new text end new text begin Subd. 6. new text end new text begin Recommended appropriations. new text end new text begin The Homeownership Opportunity Council must recommend to the governor and the legislature the manner in which money from the homeownership opportunity fund should be appropriated for the purposes stated in section 462A.51. new text end new text begin Subd. 7. new text end new text begin Reports to legislature. new text end new text begin (a) By January 15 of each odd-numbered year, the council must submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over housing and jurisdiction over taxes on the activities for which money has been or will be spent for the current biennium and the activities for which money is recommended to be spent in the next biennium. new text end new text begin (b) By January 15 of each even-numbered year, the council may submit to the legislature supplemental recommendations on the manner in which money from the homeownership opportunity fund should be appropriated in the next fiscal year. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2026. new text end Sec. 8. new text begin [462A.53] RENTAL OPPORTUNITY FUND. new text end new text begin Subdivision 1. new text end new text begin Fund. new text end new text begin The rental opportunity fund is established. All money earned by the fund must be credited to the fund. new text end new text begin Subd. 2. new text end new text begin Purpose. new text end new text begin The fund is established to create more homes that Minnesotans can afford by increasing the supply of affordable rental housing, especially for very low- and extremely low-income households; reduce the number of low-income households experiencing housing cost burden by investing in rental assistance; and improve quality of life by ensuring existing homes are safe, healthy, and resilient. new text end new text begin Subd. 3. new text end new text begin Appropriation; expenditures. new text end new text begin (a) $....... is appropriated annually from the general fund to the commissioner for use under this section. new text end new text begin (b) Amounts in the fund may be spent for: new text end new text begin (1) financing the acquisition, rehabilitation, adaptive reuse, or new construction of property to serve as rental housing; new text end new text begin (2) rental assistance; and new text end new text begin (3) supportive services to renters and owners of rental property. new text end new text begin Subd. 4. new text end new text begin Audit. new text end new text begin The legislative auditor must audit fund expenditures to ensure that the money is spent for the purposes for which it is dedicated and for which the money was appropriated. new text end new text begin Subd. 5. new text end new text begin Prevailing wages. new text end new text begin Contracts for projects funded by this fund must meet the requirements of contracts for state projects, as established in section 177.43. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2026. new text end Sec. 9. new text begin [462A.54] RENTAL OPPORTUNITY COUNCIL. new text end new text begin Subdivision 1. new text end new text begin Establishment. new text end new text begin A Rental Opportunity Council is created to advise on the administration and implementation of the rental opportunity fund under section 462A.53. The Housing Finance Agency must provide administrative support for the council. The members of the council must elect a chair from the voting members of the council. new text end new text begin Subd. 2. new text end new text begin Membership; appointment. new text end new text begin (a) Three members of the house of representatives, including two members from the majority party, appointed by the speaker of the house, and one member from the minority party, appointed by the minority leader, must serve at the pleasure of the appointing authority as nonvoting members of the council. Three members of the senate, including two members from the majority party and one member from the minority party, appointed according to the rules of the senate, must serve at the pleasure of the appointing authority as nonvoting members of the council. new text end new text begin (b) Twenty-four voting members must be appointed and must include: new text end new text begin (1) the commissioner of the Housing Finance Agency; new text end new text begin (2) one representative of a labor union; new text end new text begin (3) one member that represents either a public housing authority or a housing or redevelopment authority; new text end new text begin (4) one member living in rental housing who (i) has a disability, and (ii) transitioned out of congregate care; new text end new text begin (5) one member who is experiencing or has experienced homelessness; new text end new text begin (6) two representatives of a Tribal government; new text end new text begin (7) one representative of a nonprofit housing provider; new text end new text begin (8) one representative of a for-profit housing provider; new text end new text begin (9) one representative of a nonprofit developer of rental housing; and new text end new text begin (10) one representative of a for-profit developer of rental housing. new text end new text begin (c) Appointments must be made as follows: the governor, the senate majority leader, and the speaker of the house must each in turn appoint members required under paragraph (b) until 12 appointments have been made. The governor must appoint an additional eight members, ensuring that any outstanding requirements under paragraph (b) are satisfied. The house minority leader and the senate minority leader must then each appoint two members. Members appointed under this paragraph must not be registered lobbyists or legislators. new text end new text begin (d) Appointing authorities must ensure that appointees represent a diversity of backgrounds, including racial, ethnic, socioeconomic, and geographic backgrounds. new text end new text begin Subd. 3. new text end new text begin Conflict of interest. new text end new text begin A council member may not participate in or vote on a decision of the council relating to an organization in which the member has either a direct or indirect personal financial interest. While serving on the council, a member must avoid any potential conflict of interest. new text end new text begin Subd. 4. new text end new text begin Terms; compensation; removal. new text end new text begin The terms of members representing the state agencies are four years and are coterminous with the governor. The terms of other nonlegislative members of the council must be as provided in section 15.059, subdivision 2. Members may serve until their successors are appointed and qualify. Compensation and removal of nonlegislative council members is as provided in section 15.059, subdivisions 3 and 4. Compensation of legislative members is as determined by the appointing authority. The agency may reimburse legislative members for expenses. A vacancy on the council may be filled by the appointing authority provided in subdivision 2 for the remainder of the unexpired term. new text end new text begin Subd. 5. new text end new text begin Strategic plan. new text end new text begin The council must adopt a strategic plan for recommending policy changes and making expenditures from the rental opportunity fund that further the purpose in section 462A.53, subdivision 2, including identifying the priority areas for funding for the next six years. The council must issue a revised plan by December 1 each even-numbered year. The strategic plan must have clearly stated short- and long-term goals and strategies for fund expenditures, must provide measurable outcomes for expenditures, and must determine areas of emphasis for funding. The council's strategic plan must detail how the council will engage impacted individuals and communities and ensure council recommendations support the fund's purpose and the intention to reduce disparities, support community-based solutions, improve the condition of homes, increase accessibility, and improve energy and water efficiency. new text end new text begin Subd. 6. new text end new text begin Recommended appropriations. new text end new text begin The Rental Opportunity Council must recommend to the governor and the legislature the manner in which money from the rental opportunity fund should be appropriated for the purposes stated in section 462A.53 and the Minnesota Constitution, article XI, section 16. new text end new text begin Subd. 7. new text end new text begin Reports to legislature. new text end new text begin (a) By January 15 of each odd-numbered year, the council must submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over housing and jurisdiction over taxes on the activities for which money has been or will be spent for the current biennium and the activities for which money is recommended to be spent in the next biennium. new text end new text begin (b) By January 15 of each even-numbered year, the council may submit to the legislature supplemental recommendations on the manner in which money from the rental opportunity fund should be appropriated in the next fiscal year. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2026. new text end