Minneslate Logo

SF1801 (Legislative Session 94 (2025-2026))

State rental assistance program payment provisions modifications

AI Generated Summary

The bill S.F. No. 1801 seeks to modify the payment provisions of Minnesota’s state rental assistance program. It makes amendments to Minnesota Statutes 2024, section 462A.2095, with key changes including:

  1. Establishment of the State Rent Assistance Account

    • This account is housed in the housing development fund.
    • Funds from the account will be appropriated for rental assistance grants.
    • The Minnesota Commissioner of Revenue will distribute funds directly to program administrators.

  2. Eligibility Criteria for Households

    • Eligible households must have annual incomes up to 50% of the area median income and be paying over 30% of their income on rent.
    • Eligibility is determined when households first receive assistance and must be recertified annually.
    • Households already receiving federal tenant-based or project-based assistance (e.g., Section 8) are excluded from this program.

  3. Definition of Program Administrators

    • Entities that can administer the program include:
      • Housing and redevelopment authorities or local government agencies administering federal housing assistance programs (e.g., Section 8).
      • Tribal governments or Tribally designated housing entities.
      • If no government-based administrator is available, nongovernmental organizations with administrative capacity.

  4. Grant Distribution & Funding

    • The state agency can issue grants to program administrators to provide rental assistance.
    • Funding will be distributed based on eligibility rates in each county according to the American Community Survey.
    • Assistance is paid directly to housing providers, either in tenant-based or project-based forms.
    • Priority is given to households with children (under 18) and incomes up to 30% of area median income.

  5. Determination of Rent Assistance Amounts

    • Administrators can provide assistance covering the difference between 30% of household income and rent (including utilities if not already covered).
    • Aid cannot exceed the gap between 30% of tenant income and 120% of the local payment standard (set by public housing authorities), unless authorized by the agency.

Summary

The bill updates Minnesota’s state rental assistance program by adjusting funding distribution, eligibility, administrative authority, and the method of calculating rent assistance. It emphasizes direct payments to landlords, prioritization of families with children, and statewide funding distribution based on local need.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 23, 2025SenateFloorActionIntroduction and first reading
February 23, 2025SenateFloorActionReferred toHousing and Homelessness Prevention

Citations

 
[
  {
    "analysis": {
      "added": [
        "Streamlines program administration by providing direct funding to specific types of program administrators."
      ],
      "removed": [
        "Clarifies that households receiving other types of federal assistance are not eligible."
      ],
      "summary": "The bill modifies payment provisions for the state rental assistance program under section 462A.2095.",
      "modified": [
        "Adjusts eligibility criteria and prioritization for rental assistance."
      ]
    },
    "citation": "462A.2095"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section is referenced regarding the deposit of funds into the account for grants.",
      "modified": []
    },
    "citation": "297A.9925"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines metropolitan counties as referenced in the bill.",
      "modified": []
    },
    "citation": "473.121"
  }
]

Sponsors