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SF4565 (Legislative Session 94 (2025-2026))

Workforce housing development program appropriation increase provision

AI Generated Summary

Purpose

  • To increase the funding for the Greater Minnesota workforce housing development program and clarify how those funds are managed within the state budget.

Main Provisions

  • Appropriation framework:
    • The bill revises how amounts for housing programs are totaled and managed in Laws 2025 chapter 32, article 1, section 2, subdivision 1.
    • It states that appropriations are available for the housing development fund and, unless otherwise specified, are part of the agency’s permanent budget base.
  • Workforce Housing Development program details:
    • The appropriation is for the Greater Minnesota workforce housing development program, under Minnesota Statutes section 462A.39.
    • If requested by the applicant and approved by the agency, funded properties may include a portion of income- and rent-restricted units. Funded properties may also include owner-occupied homes.
    • The base amount for this appropriation is $2,000,000 in fiscal year 2028 and thereafter.

Significant Changes

  • Funding increase and structure:
    • Establishes a base appropriation of $2,000,000 for the workforce housing program beginning in FY 2028 and continuing thereafter.
    • Allows funded properties to include income- and rent-restricted units and potentially owner-occupied homes, expanding the types of housing that can be funded.
  • Budget treatment:
    • Confirms that these appropriations are part of the housing development fund and, unless specified otherwise, become part of the agency’s permanent budget base.

Practical Impact

  • More financial support for creating and maintaining housing for the workforce in Greater Minnesota.
  • Greater flexibility for funded projects to mix different housing types (rental and ownership) tied to income restrictions.

Relevant Terms - workforce housing development program - Greater Minnesota - housing development fund - permanent budget base - Minnesota Statutes section 462A.39 - income-restricted units - rent-restricted units - owner-occupied homes - appropriation - fiscal year 2028

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 18, 2026SenateActionIntroduction and first reading
March 18, 2026SenateActionReferred toHousing and Homelessness Prevention

Citations

 
[
  {
    "analysis": {
      "added": [
        "Funded properties may include a portion of income- and rent-restricted units.",
        "Funded properties may include owner-occupied homes."
      ],
      "removed": [],
      "summary": "This bill references Minnesota Statutes section 462A.39 and funds the Greater Minnesota Workforce Housing Development Program, establishing a base appropriation for FY 2028 and thereafter and allowing funded properties to include income- and rent-restricted units, including owner-occupied homes.",
      "modified": [
        "Sets the base appropriation for this program at $2,000,000 in fiscal year 2028 and thereafter."
      ]
    },
    "citation": "462A.39",
    "subdivision": ""
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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