HF5014

Purpose

• This bill changes how money from Minnesota’s metropolitan sales tax is distributed to support affordable housing and rent assistance.

Main Provisions

• Section 1: Distribution of metropolitan sales tax proceeds

  • Proceeds from the metropolitan sales tax will be split as follows:
  • 25% to the state rent assistance account (under section 462A.2095).
  • 25% to the metropolitan city aid account in the housing assistance fund (under section 477A.37).
  • 50% to the metropolitan county aid account in the housing assistance fund (under section 477A.37).
  • This replaces the previous distribution method and directs more funds toward county-level housing aid and city aid, while still supporting state rent assistance.

• Section 2: Metropolitan city aid account

  • Establishes a metropolitan city aid account in the housing assistance fund.
  • The account receives money provided under section 297A.9925 and any other money donated, allotted, transferred, or provided to the account.
  • The money in this account is annually appropriated to the commissioner of revenue for payments to cities as provided under section 477A.35.

Significant Changes to Existing Law

• Reallocates the share of metropolitan sales tax proceeds among three targets:
  • State rent assistance
  • Metropolitan city aid (newly defined account in the housing assistance fund)
  • Metropolitan county aid (continuing in the housing assistance fund)
• Creates an explicit framework for funding cities via a dedicated metropolitan city aid account and ties annual city payments to a statutory appropriation process (section 477A.35).

What the Bill Seeks to Accomplish

• Provide a clear and stable distribution of metropolitan sales tax proceeds to support:
  • Rent assistance at the state level
  • Housing-related aid for metropolitan cities
  • Housing-related aid for metropolitan counties

Terminology Context

• Key concepts include local affordable housing aid, metropolitan sales tax, housing assistance fund, state rent assistance account, metropolitan city aid account, metropolitan county aid account, and the role of the commissioner of revenue in distributing funds to cities.

Relevant Terms

• metropolitan sales tax
• local affordable housing aid
• state rent assistance account
• metropolitan city aid account
• metropolitan county aid account
• housing assistance fund
• commissioner of revenue
• section 462A.2095
• section 477A.37
• section 297A.9925
• section 477A.35
• Minnesota Statutes 2024 (as referenced in the bill)