HF5043

Purpose

This bill aims to boost funding for Minnesota’s workforce housing efforts, specifically by increasing and clarifying the financing available through the Greater Minnesota workforce housing development program. It also clarifies how funds can be used and how this program fits into the state’s budgeting framework.

Main Provisions

• The bill modifies the appropriations structure for the housing development programs, listing the total amounts that may be spent for each purpose and clarifying that these appropriations are part of the agency’s permanent budget base and allocated to the Housing Development Fund.

• Workforce Housing Development (Subd. 3):

  • The appropriation supports the Greater Minnesota workforce housing development program (under Minnesota Statutes section 462A.39).
  • If an applicant requests it and the agency approves, funded properties may include a portion of income- and rent-restricted units.
  • Funded properties may also include owner-occupied homes.

• Funding baseline:

  • The base appropriation for this program is $2,000,000 starting in fiscal year 2028 and continuing thereafter.

Significant Changes to Existing Law

• Increases and clarifies the total appropriation amounts for housing development programs, integrating these funds into the agency’s permanent budget base and the Housing Development Fund.

• Expands eligible property types for funded projects to include income- and rent-restricted units and owner-occupied homes, provided the applicant requests funding and it is approved by the agency.

• Establishes a new baseline funding level beginning in fiscal year 2028 ($2,000,000) for the workforce housing program.

Funding and Administration (Key Notes)

• The bill specifies the total appropriation amounts for the programs within this section, with explicit dollar figures listed in the statute (e.g., 101,148,000; 82,798,000; 97,798,000), and notes that these appropriations are for the Housing Development Fund and are part of the agency’s permanent budget base.

• The program operates under the Housing Development Fund and is overseen by the appropriate legislative committee (Housing Finance and Policy).

Relevant Terms - Greater Minnesota workforce housing development program - Minnesota Statutes § 462A.39 - Housing Development Fund - income-restricted units - rent-restricted units - owner-occupied homes - appropriation / total appropriation - permanent budget base - fiscal year 2028 - housing finance and policy (committee) - funded properties - program purposes within the housing development fund