HF4842

Purpose

• The bill provides a one-time funding infusion to support a special purpose credit loan program through Build Wealth MN. Specifically, it would appropriates $2,000,000 in fiscal year 2027 from the General Fund to the Commissioner of the Minnesota Housing Finance Agency to grant to Build Wealth MN to expand and administer the special purpose credit loan program, which uses a revolving loan pool to provide affordable mortgage financing to underserved borrowers in communities of color.

Main Provisions

• Funding: A one-time appropriation of $2,000,000 in FY 2027 from the General Fund.
• Recipient and oversight: The appropriation is to the Commissioner of the Minnesota Housing Finance Agency for a grant to Build Wealth MN.
• Program objective: Expand and administer a special purpose credit loan program.
• Financing mechanism: The program uses a revolving loan pool to provide affordable mortgage financing.
• Scope of beneficiaries: Targeting underserved borrowers in communities of color.

Funding Details and Program Mechanism

• Source of funds: General Fund.
• Use of funds: To support a grant to Build Wealth MN for expanding and administering the special purpose credit loan program.
• Financial tool: Revolving loan pool designed to offer affordable mortgage financing.

Beneficiaries and Scope

• Primary beneficiaries: Underserved borrowers in communities of color.
• Geographic/ demographic focus: Communities of color within Minnesota.

Changes to Existing Law

• This bill provides a one-time appropriation to support a specific program (the special purpose credit loan program) rather than creating ongoing program funding. It does not specify permanent changes to statute beyond the one-time grant and program expansion/administration.

Implementation and Oversight

• Agencies involved: Minnesota Housing Finance Agency (HFA) and Build Wealth MN.
• Administration: Build Wealth MN will administer the program, with funding administered via a grant from HFA.

Intent and Policy Goals

• Increase access to affordable mortgage financing for underserved communities of color.
• Create or expand a revolving loan pool to support targeted homeownership opportunities.

Relevant Terms - Build Wealth MN - special purpose credit loan program - revolving loan pool - affordable mortgage financing - underserved borrowers - communities of color - Minnesota Housing Finance Agency (HFA) - general fund - grant - fiscal year 2027 - one-time appropriation