HF5013

Purpose

This bill provides supplemental budget adjustments for the Minnesota Housing Finance Agency. It outlines how additional appropriations for fiscal years 2026 and 2027 are to be allocated, transferred to the Housing Development Fund, and used to support housing and homelessness programs.

Key Provisions

• Sec. 1 and Sec. 2 overview

  • Establishes that appropriations shown are added to or subtracted from the agency’s Laws 2025 baseline and are available for the fiscal years ending June 30, 2026 (2026) and June 30, 2027 (2027).
  • The total appropriation includes a transfer to the Housing Development Fund for the specified programs, and, unless stated otherwise, these amounts are part of the agency’s permanent budget base.

• Subd. 2. Family Homeless Prevention

  • Allocates funds to the Family Homeless Prevention and Assistance Program under Minn. Stat. 462A.204.
  • Allows using the appropriation to reduce homelessness risk and improve program effectiveness, as determined by the agency.
  • If a new grantee works with a current or former grantee in a geographic area, the new grantee may collaborate with an advisory committee or the local continuum of care and is not required to meet certain statutory requirements.
  • The agency may award grants to existing program grantees, even if procurement rules would otherwise apply.
  • The program base for FY 2028 and beyond is set at 10,719,000 dollars.

• Subd. 3. Home Ownership Assistance Fund

  • Funds the Home Ownership Assistance Program under Minn. Stat. 462A.21, subd. 8.
  • The agency is directed to continue efforts to address the disparity gap in homeownership between white households and Indigenous/Native American and communities of color.
  • To better understand and address this gap, the agency must collect, on a voluntary basis, demographic information (race, color, national origin, and sex) of applicants for programs intended to benefit homeowners and homebuyers.
  • The program base for FY 2028 and beyond is set at 885,000 dollars.

• Subd. 4. Supportive Housing

  • Provides a onetime appropriation for the Supportive Housing Program under Minn. Stat. 462A.42.
  • Funds may be used as supplemental emergency support resources for permanent supportive housing, rapid rehousing, transitional housing, and related system activities for HUD Continuum of Care (CoC) program grantees whose funding was awarded under HUD’s FY 2024–FY 2025 Notice of Funding Opportunity and who have experienced gaps due to HUD nonrenewal.
  • The agency can prioritize awards based on need and eligible uses.
  • Despite existing application and procurement rules (Minn. Stat. 462A.42 subd. 5 and Minn. Stat. 16C.06), the agency may noncompetitively award grants to current and previous federal CoC funding recipients.

Significant Changes / Effects

• Introduces a targeted, supplemental funding stream for homelessness prevention and housing programs within the Minnesota Housing Finance Agency’s budget for 2026–2027, with specific program bases established for 2028 onward.
• Allows more flexible grant-making in the Family Homeless Prevention program (including to existing grantees) and clarifies collaboration options for new grantees.
• Introduces voluntary data collection on race, national origin, and sex to address disparities in homeownership.
• Enables a one-time, targeted infusion of funds to support Continuum of Care-related housing solutions, including emergency resources for programs impacted by HUD funding gaps and nonrenewals, with limited noncompetitive grant authority.

Relevant Context

• Programs referenced align with state and federal housing strategies, including Family Homeless Prevention, Home Ownership Assistance, and HUD Continuum of Care activities.
• The bill contemplates interactions with advisory committees and local Continuums of Care and adjusts normal procurement requirements under certain conditions to address urgent needs and gaps.

Relevant Terms - Minnesota Housing Finance Agency - Family Homeless Prevention and Assistance Program - Minnesota Statutes: 462A.204 - Home Ownership Assistance Fund - Minnesota Statutes: 462A.21, subd. 8 - Disparity gap in homeownership - Indigenous/Native American communities - Communities of color - Race, color, national origin, and sex (demographic data) - Supportive Housing Program - Minnesota Statutes: 462A.42 - HUD (U.S. Department of Housing and Urban Development) - Continuum of Care (CoC) - HUD CoC funding and nonrenewal - Noncompetitive grant awards - Advisory committee - Local Continuum of Care - Housing Development Fund - General Fund - Base (budget base) - One-time appropriation - Supplemental emergency support resources - Permanent supportive housing - Rapid rehousing - Transitional housing - Procurement provisions (Minn. Stat. 16C.06)