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Committee lays over bill to continue and expand First‑Generation Down Payment Assistance program
Summary
Representative Ekbaje presented House File 999 to create a permanent First‑Generation Community Down Payment Assistance Fund, building on a 2023 pilot that provided down‑payment assistance to first‑generation homebuyers.
Representative Ekbaje presented House File 999 to create a permanent First‑Generation Community Down Payment Assistance Fund, building on a 2023 pilot that provided down‑payment assistance to first‑generation homebuyers across Minnesota.
Nut graf: Supporters told the committee the pilot helped hundreds of households—many from underrepresented communities—become homeowners and that a permanent program would expand access, close homeownership disparities and produce community economic benefits. The committee heard broad support from nonprofit housing providers, industry groups, and lenders; members asked detailed questions about program scale, funds remaining and loan mechanics.
Karen Larson of Midwest Minnesota Community Development Corporation (MMCDC), the program administrator, said MMCDC closed thousands of loans in the program’s early months and that, as of recent reporting, 60 percent of MMCDC‑administered funds remained unreserved, committed or closed. MMCDC reported 700 loans closed to first‑generation buyers totaling about $21 million (closing through February) and earlier reporting indicated $18 million used in the first seven months. Witnesses emphasized program features including fund reservation to make offers competitive, consumer choice of lenders, and mandatory homebuyer education.
Representative Johnson and others asked whether a forgivable‑loan structure was the best way to make funds sustainable. The sponsor said the forgivable‑loan design helps recipients build equity and pass wealth to future generations. Members also discussed how the program interacts with other financing tools (USDA 502 direct loans, conventional mortgages and mortgage insurance rules). The committee laid HF 999 over for possible inclusion.
Actions: Representative Ekbaje moved House File 999 and the committee laid the bill over for possible inclusion; no final appropriation was enacted at the hearing.
Ending: Chairs and sponsors asked staff for additional data on geographic distribution and fund pipeline; MMCDC said the program began closing loans in June 2024 and reported that a majority of funds remain available through MMCDC’s allocation.
