HF2309 (Legislative Session 94 (2025-2026))
Housing provisions modified, rental assistance program funding provisions modified, program eligibility criteria expanded, workforce housing project funding restrictions removed, housing aid fund uses clarified, and high-rise sprinkler system program provisions modified.
Related bill: SF2552
AI Generated Summary
Purpose of the Bill
The bill aims to modify various housing-related provisions in Minnesota to improve rental assistance programs, expand funding opportunities, and clarify eligibility and use of funds for housing aid.
Main Provisions
Rental Assistance: The bill allows for both tenant-based and project-based rental assistance. Grants for rental assistance will be given to program administrators who will pay housing providers directly, focusing on assisting households with children and low-income families.
Grant Funding to Schools: School districts and charter schools can receive grants under $100,000 for constructing homes. They must provide homeownership education as part of the grant requirement.
Eligible Recipients and Use of Funds: The bill delineates the eligibility criteria for recipients of housing aid, focusing on preventing conflicts of interest with business entities that have contributed to certain accounts.
Local Housing Trust Fund Grants: Allocates grants to local housing trusts, with funds needing to be utilized within eight years for housing affordability projects.
Highrise Sprinkler System Program: Grants and loans will be given to high-rise residential buildings to install sprinkler systems, prioritizing nonprofit organizations and requiring matching funds from recipients.
Significant Changes
Expanded Eligibility: The bill removes certain restrictions and expands eligibility criteria for receiving housing aid. It also clarifies that funding can now benefit a wider range of housing projects and household incomes.
Funding and Grant Adjustments: It establishes detailed provisions for redistributing unused funds and alters matching requirements for grants in high-rise buildings based on the type of organization applying.
Income Limits Update: Adjusts income eligibility criteria for some programs, impacting the affordability requirements and broadening qualified participants.
Clarifications on Previous Expenditures: Specifies that grant recipients cannot use funds to reimburse themselves for previously incurred expenses.
Relevant Terms
- Rental assistance
- Tenant-based assistance
- Project-based assistance
- Local housing trust fund
- Homeownership education
- Sprinkler systems
- Nonprofit organizations
- Affordable housing
- Area median income
Bill text versions
- Introduction PDF file
Past committee meetings
- Housing Finance and Policy on: April 02, 2025 15:00
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 12, 2025 | House | Floor | Action | Introduction and first reading, referred to | Housing Finance and Policy |
Citations
[
{
"analysis": {
"added": [
"Clarification of allocation and award processes for financial assistance."
],
"removed": [],
"summary": "This bill modifies financial assistance provisions as they pertain to the Minnesota Housing Finance Agency and federal low-income housing credits under section 462A.051.",
"modified": [
"Definition and application of financial assistance terms expanded to include more forms of assistance."
]
},
"citation": "462A.051"
},
{
"analysis": {
"added": [
"Redistribution process for unused funds is introduced."
],
"removed": [],
"summary": "This section amends the provisions for grants to program administrators for rental assistance under section 462A.2095.",
"modified": [
"Criteria for rental assistance priority expanded to include additional populations based on local need."
]
},
"citation": "462A.2095"
},
{
"analysis": {
"added": [
"School districts and other educational units can receive grant funding under specified conditions."
],
"removed": [],
"summary": "Section 462A.33 is amended to clarify grant funding to schools.",
"modified": [
"Required participation in homeownership education for future occupants of homes built using grant funds."
]
},
"citation": "462A.33"
},
{
"analysis": {
"added": [
"Introduction of specific disqualifications for grant or loan receipt based on prior contributions and credit receipt."
],
"removed": [],
"summary": "This section modifies eligible recipients and use of funds criteria for housing grants and loans under section 462A.40.",
"modified": [
"Expanded the types of eligible entities and clarified disqualified individuals/businesses."
]
},
"citation": "462A.40"
},
{
"analysis": {
"added": [
"Clarification on the spending deadline and transferability of funds to local housing trust funds."
],
"removed": [],
"summary": "This section changes the use of proceeds for qualifying projects under 477A.35.",
"modified": [
"Stipulations on the usage of funds, including carry-forward conditions."
]
},
"citation": "477A.35"
},
{
"analysis": {
"added": [
"Funds transfer conditions to local housing trust funds and project eligibility criteria."
],
"removed": [],
"summary": "Use of proceeds modification for section 477A.36 related to qualifying housing projects.",
"modified": [
"Defines terms for fund spending and redistribution to ensure timely use."
]
},
"citation": "477A.36"
},
{
"analysis": {
"added": [
"Incentives for local funding contributions through matching grants."
],
"removed": [],
"summary": "Modification of local trust fund grants under 462C.16.",
"modified": [
"Adjustment of grant usage period and required income benefit levels."
]
},
"citation": "462C.16"
},
{
"analysis": {
"added": [
"Definition of 'sprinkler system' as it applies to new grant provisions for buildings."
],
"removed": [],
"summary": "Definition adjustments related to sprinkler system eligibility under section 299M.01.",
"modified": []
},
"citation": "299M.01"
}
]