Purpose

Provide a onetime emergency rental assistance program funded by the general fund to help counties and Tribal governments quickly support households facing homelessness or at imminent risk of homelessness due to a housing crisis. The funds are intended specifically for rental assistance and are a temporary, one-time appropriation.

Main Provisions

• Funding and recipients
  • Allocates $44,000,000 in fiscal year 2026 to counties for rental assistance through aid payments.
  • Allocates $6,000,000 in fiscal year 2026 to Tribal governments for rental assistance through aid payments.
  • Both allocations are one-time appropriations.
• Timing and distribution
  • Within 15 days after the section’s effective date, the commissioner of revenue must distribute funds to counties using the existing county distribution formula (Minnesota Statutes section 477A.30, subdivision 3), and must use the appropriation amount and existing population data and distribution factors used to certify aids payable in 2026.
  • Within 15 days after the effective date, the commissioner must pay an equal share of the tribal aid to each tribal government that elects to receive a distribution under Minn. Stat. 477A.30, subdivision 3a.
• Use of funds
  • Counties and Tribal governments must use the money only for rental assistance to eligible recipients.
• Eligibility for assistance
  • Eligible households must have income at or below 200 percent of the federal poverty level.
  • Must be Minnesota residents.
  • Must be homeless or at imminent risk of homelessness and in need of financial assistance due to a housing crisis.
• Spending timeframe and handling of unspent funds
  • Funds must be spent within 180 days of receipt.
  • Any money not spent within 180 days must be returned to the commissioner of revenue and is canceled to the general fund.
• Administration
  • Rental assistance funded under this section may be administered by the same entities that administer family homeless prevention and assistance projects or programs under Minnesota Statutes section 477A.30, subdivision 4, paragraph a.
• Definitions
  • The term “Tribal government” has the meaning given in Minnesota Statutes section 477A.30, subdivision 1, clause 4.

Significant Changes to Existing Law

• Creates a new, one-time emergency rental assistance program funded by the general fund specifically for counties and Tribal governments.
• Establishes a rapid distribution mechanism within 15 days of the effective date using existing distribution formulas (477A.30) and, for tribes, a process for equal shares to those electing to participate (subdiv. 3a).
• Imposes a 180-day spending window and requires return of any unspent funds to the general fund.
• Aligns administration with existing homeless prevention programs (477A.30, subd. 4(a)).
• Defines the tribal government term consistent with existing statute (477A.30, subd. 1, cl. 4).

Implementation and Practical Impact

• Enables a swift influx of funds to address rental assistance needs amid a housing crisis.
• Ties distribution to existing statewide formulas, ensuring consistency with current aid processes.
• Sets tight spending and accountability requirements to minimize ongoing fiscal impact and ensure timely use of funds.

Relevant Terms - Emergency rental assistance - One-time appropriation / onetime appropriation - General fund - Counties - Tribal governments - Minnesota Statutes section 477A.30 (subdivision 3, subdivision 3a, subdivision 4(a)) - Rental assistance - Eligible recipients - Income at or below 200 percent of the federal poverty level - Homeless - Imminent risk of homelessness - Housing crisis - 180 days (spending deadline) - Unspent funds canceled to the general fund - Administration/administrators for homeless prevention programs - Effective date of the section