Bill > SF1610

This bill modifies the Community-Based First-Generation Homebuyers Down Payment Assistance Program by making several key changes to the program's structure and eligibility requirements. The program, administered by the Midwest Minnesota Community Development Corporation (MMCDC), will provide down payment assistance to first-generation homebuyers with income at or below the statewide median income. An eligible homebuyer must be an adult who is preapproved for a first mortgage, has never owned a home or lost a previous home to foreclosure, and has a parent or legal guardian who also never owned a home or lost a home to foreclosure. The assistance will be a no-interest loan up to 10% of the home's purchase price (not exceeding $32,000), with the loan amount potentially increasing to 10% of the median home sales price starting in fiscal year 2027. The loan will be forgiven over five years at a rate of 20% per year, with funds usable for closing costs, down payment, or principal reduction. The bill also appropriates $25,000,000 in fiscal year 2026 and $50,000,000 in fiscal year 2027 to support the program, and requires MMCDC to provide an annual report to the legislature detailing loan statistics and demographic information.

Housing and Urban Affairs

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1610&ssn=0&y=2025