Minnesota Will Offer First State-Run Shariah-Compliant Home Sales

An editorial in Investor's Business Daily yesterday says that the state of Minnesota is about to become the first to offer a state-run Shariah-compliant home lending program. The Minnesota Housing Finance Agency will buy homes with tax funds and then resell them to Muslim buyers in installment sales at a higher price (in lieu of charging interest). MHFA has posted on its website the Murabaha Agreement that will be used in such sales. The IBD editorial calls for the ACLU or someone else to challenge the state program as a violation of the Establishment Clause.