HF4561

Purpose

• This bill changes how the local homeless prevention aid is reported, lets unused funds be redistributed, and repeals a sunset that previously ended the aid. It also sets out how the aid must be used to support families and youth at risk of homelessness.

Main provisions

• Use of proceeds

  • Counties and Tribal governments that receive the aid must fund new or existing family homeless prevention and assistance projects or programs.
  • Eligible administrators include: a single county, groups of contiguous counties, a city, groups of contiguous cities, a Tribal government, groups of Tribal governments, or a community-based nonprofit organization.

• Target populations and programs

  • Projects must include plans that target:
  • families with children eligible for a prekindergarten through grade 1 academic program and who are:
    • living in overcrowded housing,
    • paying more than 50% of their income for rent, or
    • lacking a fixed, regular, and adequate nighttime residence;
  • unaccompanied youth in need of an alternative residential setting.
  • Projects must connect families with social services to maintain housing stability, including housing navigation, legal representation, and family outreach.

• Services and outcomes

  • At least one of the following:
  • providing rental assistance for a specified period (which may exceed 24 months),
  • or providing support and case management services to improve housing stability (including housing navigation and family outreach).

• Unspent funds

  • If there are unspent funds, they may be returned to the commissioner of revenue by December 31 of the year after the aid was received.
  • Returned funds must be added to the overall distribution of aids certified under this section in the following year.
  • If unspent funds are returned after expiration under subdivision 8, they are canceled to the general fund.

• Sunset and related law changes

  • The bill repeals the sunset of the local homeless prevention aid, meaning the aid would not automatically end at a later date specified by a sunset provision.
  • It also repeals Minnesota Statutes 2024 section 477A.30 subdivision 8 and modifies subdivisions 4–7 accordingly.

Significant changes to existing law

• Repeals a sunset provision on the local homeless prevention aid.
• Alters reporting requirements and how unspent funds are handled, including redistribution into future aid certifications.
• Expands or clarifies allowed uses of the aid to emphasize family homelessness prevention and related services, with specific eligibility criteria and administration options.

Implementation notes

• The excerpt does not specify an effective date within the text provided.
• The bill references changes to Minnesota Statutes 2024 section 477A.30, including subdivisions 4–7 and the repeal of subdivision 8.

Relevant terms - local homeless prevention aid - use of proceeds - housing navigation - legal representation - family outreach - housing stability - rental assistance - case management - unaccompanied youth - prekindergarten through grade 1 - overcrowded housing - paying more than 50% of income for rent - fixed nighttime residence - unspent funds - commissioner of revenue - distribution - general fund - sunset - Minnesota Statutes 2024 section 477A.30 subdivisions 4–7 - administration by counties, cities, tribal governments, or nonprofits