Bill > HF3279

This bill proposes a constitutional amendment to increase the sales tax rate by three-eighths of one percent beginning July 1, 2027, with the revenue dedicated to three specific housing-related funds. The sales tax increase would continue until 2052 and generate funds for a homeownership opportunity fund (25% of receipts), a community and household stability fund (25% of receipts), and a rental opportunity fund (50% of receipts). Each fund would have a corresponding council responsible for recommending how the money should be spent, with a focus on reducing housing disparities, supporting affordable housing, preventing homelessness, and improving home accessibility. The bill creates detailed provisions for the composition and responsibilities of these councils, requiring diverse representation, strategic planning, and regular reporting to the legislature. Specifically, the funds could be used for purposes such as down payment assistance, emergency housing support, rental assistance, home rehabilitation, and supportive services for renters and homeowners. The proposed amendment would be submitted to voters in the 2026 general election, and if approved, would establish a dedicated funding mechanism to address housing challenges in Minnesota. The bill includes provisions for auditing fund expenditures and ensuring that the funds supplement, rather than replace, traditional funding sources.

Housing and Urban Affairs

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF3279&ssn=0&y=2025