Committee hears bill letting select cities and counties invest in housing investment funds

Representative Lugar Nikolai introduced House File 4186 and described it as a limited expansion to current investment authority that would allow local units of government (100,000+ population or high GO bond rating) to invest a portion of reserves in registered funds with a mission to develop multifamily housing and with an investment portfolio at least 80% federally guaranteed or insured at purchase.

Tom Micklech, executive director of the Minnesota State Building and Construction Trades Council, testified in support and said union pension plans have invested in the Housing Investment Trust with local returns and job benefits. Pat Harris of the AFL‑CIO Housing Investment Trust described the statutory language, reiterated the 15% limit and SEC registration requirement, and said such funds could provide fixed‑income‑like performance while supporting affordable housing projects across Minnesota. "It does not require investment and does not seek state revenue," Harris said.

Members asked clarifying questions; no public opposition was recorded during the committee. Representative Lugar Nikolai said the bill is meant to provide an additional, non‑state revenue option for cities and counties to help address local housing needs.

After testimony, the committee laid HF 4186 over for further consideration; it was not advanced to the general register at this hearing.