HF4736

Purpose

• Establish an emergency shelter facility grant program under Minnesota law to fund capital investments for emergency shelters that serve individuals and families experiencing homelessness. Create two grant accounts (General Fund and Bond Proceeds Fund) from which the commissioner can award grants to eligible applicants to build, renovate, or improve emergency shelter facilities. Funds remain available until encumbered or spent, within the constraints of related statutory provisions.

Key Definitions

• Commissioner: the commissioner of human services.
• Eligible applicant: a Tribal government, not-for-profit corporation under §501(c)(3), statutory or home rule charter city, county, or housing and redevelopment authority (HRA) established under §469.003.
• Emergency shelter facility: a facility that provides safe, sanitary, accessible, and suitable emergency shelter for individuals and families experiencing homelessness, whether shelter is day, night, or both.

Funding and Accounts

• Two grant accounts are created: one in the general fund and one in the bond proceeds fund. Money in these accounts is appropriated to the commissioner to make grants under this section and is available until encumbered or spent.

Project Criteria

• Grants should prioritize projects that expand or improve emergency shelter options by:
  • Renovating existing facilities not currently operating as emergency shelters to add or restore capacity.
  • Renovating existing facilities to add beds, including addressing deferred maintenance or repair or replacement of mechanical, electrical, and safety systems and components at risk of failure.
  • Acquisition and construction of new emergency shelter facilities to add beds.
  • Improving safety, sanitation, accessibility, and habitability of existing shelters, including major maintenance or systems upgrades.

Eligible Uses and Funding Cap

• Grants may cover 100 percent of total project capital expenditures or a defined project phase, up to $1,000,000 per project.

Building Codes

• All projects funded must meet applicable state and local building codes at the time of project completion.

Lease or Management Arrangements

• Eligible applicants may enter into a lease or management agreement for operation of the emergency shelter facility, subject to other relevant statutory requirements (e.g., §16A.695).

Competitive Process and Local Focus

• A competitive request-for-proposal process must be used to identify eligible projects statewide.
• At least 40 percent of the appropriation for this purpose must be awarded to projects located in Greater Minnesota. If there are not enough eligible requests from Greater Minnesota to meet this 40 percent target, the remaining funds may be awarded to other eligible projects.
• For eligible applicants seeking funding for acquisition and construction of new facilities, priority goes to projects where the applicant provides at least 10 percent of the total project funding.

Eligible Projects Recipients and Fund Source

• Proceeds from state general obligation bonds may only be expended for grants to statutory or home rule charter cities, counties, or HRAs (as defined in §469.003).
• General fund appropriations may be expended for grants to Tribal governments, not-for-profit corporations under §501(c)(3), statutory or home rule charter cities, counties, or HRAs.

Significance and Changes to Law

• Establishes a dedicated capital grant program for emergency shelter facilities, with separate funding streams (General Fund and Bond Proceeds Fund) and explicit grant caps.
• Introduces a statewide competitive process with a preferential allocation to Greater Minnesota and a funding-priority rule for new facilities requiring local cost-sharing.
• Codifies specific project criteria emphasizing renovation of non-operational shelters, major maintenance, safety and accessibility improvements, and the acquisition/construction of new shelters.
• Ties grant completion to compliance with state and local building codes and allows lease/management arrangements under existing statutes.

Relevant Terms - emergency shelter facility - eligible applicant - commissioner of human services - general fund - bond proceeds fund - statutory or home rule charter city - county - housing and redevelopment authority (HRA) - Tribal government - not-for-profit corporation (501(c)(3)) - greater Minnesota - deferred maintenance - mechanical systems - electrical systems - safety systems - accessibility - capital expenditures - acquisition and construction - renovations - competitive request for proposals (RFP) - lease or management agreement - building codes (state and local) - 16A.642 - 16A.695 - 469.003 - 1,000,000 per project