Purpose

This bill aims to dedicate a portion of local government aid (LGA) to cities specifically for housing. It creates a new metric called the Housing need percentage, which is used to determine how much LGA funding a city should allocate toward housing efforts.

Main provisions

• Adds a new subdivision (Housing need percentage) to Minnesota Statutes 2024 section 477A.011 (the bill references a new Subd. 48, called "Housing need percentage").
• Housing need percentage definition:
  • It equals the portion of a city’s revenue need under subdivision 34 that is due to two housing-related factors: 1) the city’s pre-1940 housing percentage (from subdivision 30), and 2) the city’s percentage of housing built between 1940 and 1970.
• Calculation method:
  • The sum of those two factors is equal to 100 times the most recent U.S. Census count of all housing units in the city built after 1939 but before 1970, divided by the city’s total number of housing units.
  • Housing units include both occupied and vacant units as defined by the U.S. Census.
• Data sources:
  • Uses data and definitions tied to the United States Bureau of the Census (U.S. Census) for counts of housing units and construction periods.
• Section 2:
  • The excerpt includes a Sec. 2 heading, but no accompanying text is shown in this excerpt.

Significant changes to existing law

• Creates a new mechanism to tie local government aid to housing needs by introducing the Housing need percentage, a factor in determining a city’s share of LGA dedicated to housing.
• Incorporates housing age and construction period (pre-1940 and 1940–1969) into the calculation of revenue need, potentially shifting LGA allocations based on a city’s housing stock age distribution.

Notes on scope

• The excerpt focuses on the new housing-related metric and its formula; it does not show all subsequent sections, definitions, or implementation details that may be included in the full bill.

Relevant Terms - local government aid (LGA) - housing need percentage - revenue need - subdivision 34 - pre-1940 housing percentage - subdivision 30 - housing built between 1940 and 1970 - United States Bureau of the Census - housing units - occupied housing units - vacant housing units