Purpose

• The bill requires that any private entity receiving funding from the Minnesota Housing Finance Agency must have a current certificate of eligibility for funding. This creates a formal check before funds, grants, loans, or housing tax credits are awarded.

Main provisions

• Certificate prerequisite: The commissioner may not pay, award, or allocate any funding or housing tax credits to a private entity unless that entity holds a current certificate of eligibility for funding.
• Who is eligible: “Private entity” includes any person or private group, organization, proprietorship, partnership, trust, cooperative, corporation, or other commercial or nonprofit entity, including officers, employees, or agents.
• Application requirements: To apply for a certificate, an entity must provide:
  • Registration information with the secretary (likely the Secretary of State).
  • The street address and ZIP code of its chief executive office and, if applicable, another office in the state.
  • The entity’s federal taxpayer identification number (FEIN) and, if available, a Minnesota tax identification number.
  • A list of the private entity’s employees plus an executed criminal history consent form from each employee.
• Review and issuance: The commissioner reviews the application materials and may issue a certificate of eligibility for funding after review.
• Certificate duration: A certificate expires no later than two years after issuance. After expiration, the entity may reapply for a new certificate.
• Revocation: The commissioner may revoke a certificate if:
  • The entity included false information in its application.
  • The entity was not eligible for the certificate at the time it was issued.
  • The entity misused public funds.

Significant changes to existing law

• Establishes a new, mandatory certification process before any funding or housing tax credits can be awarded to private entities by the Minnesota Housing Finance Agency.
• Adds detailed application requirements, including criminal history consent forms for employees and verification of state and federal identification numbers.
• Introduces a fixed two-year validity period for certificates and explicit revocation grounds (false information, ineligibility at issuance, misuse of public funds).
• Expands defined scope of “private entity” to cover a broad set of entities and their officers, employees, or agents.

Potential implications (plain language)

• Increased accountability and screening for organizations receiving housing funding.
• Possible delay in funding while certificates are reviewed or renewed.
• Stronger safeguards against fraud and misuse of public funds.

Terminology to watch (key terms)

• certificate of eligibility for funding
• Minnesota Housing Finance Agency
• private entity
• housing tax credits
• commissioner
• secretary (Secretary of State)
• FEIN (federal taxpayer identification number)
• Minnesota tax identification number
• criminal history consent form
• two years (certificate expiration)
• revocation
• false information
• misuse of public funds

Relevant Terms certificate of eligibility for funding Minnesota Housing Finance Agency private entity housing tax credits commissioner Secretary of State FEIN Minnesota tax identification number criminal history consent form two years revocation false information misuse of public funds