SF2552

SF2552 (Legislative Session 94 (2025-2026))

Miscellaneous housing provisions modifications

Related bill: HF2309

AI Generated Summary

Purpose of the Bill

This bill aims to make changes and improvements to various housing-related provisions in Minnesota. It focuses on updating funding mechanisms, expanding eligibility for certain housing programs, removing restrictions on workforce housing project funding, and clarifying the use of housing aid funds.

Main Provisions

Modifying Rental Assistance Programs: The bill allows grants to program administrators to provide rental assistance either directly to housing providers or through tenant-based or project-based programs. New procedures may be developed to better reach households most in need.
Expanding Eligibility for Housing Aid: The legislation enables broader eligibility for funding under housing statutes. It allows grants and loans to be awarded to a wider range of recipients, including schools and nonprofit organizations involved in developing affordable housing.
Adjusting Grant Use for Schools: Schools can receive smaller grants to construct homes for occupancy, requiring future homeowners to undergo homeownership education and training.
Highrise Sprinkler System Program: Grants and loans are provided for installing sprinkler systems in eligible high-rise buildings, prioritizing nonprofit owners and offering financial matches based on the applicant's organizational type.

Significant Changes to Existing Law

Statewide Grant Distribution: Rental assistance grants must be distributed statewide, proportionate to the eligible households in each county.
Local Housing Trust Funds: Adjustments in funding rules for local housing trust funds aim to encourage local financial contributions by matching public revenues to certain limits.
Highrise Sprinkler Systems: Updates the income eligibility criteria for buildings qualifying for sprinkler system grants, raising the income limit for affordability to 60% of the area median income.
Timeframe for Using Funds: Establishes clear deadlines for spending distributed housing funds, ensuring timely use or reversion of funds back to the local housing trust if not utilized within the specified period.

Relevant Terms

Rental assistance
Housing aid
Workforce housing
Local housing trust
Sprinkler systems
Nonprofit and forprofit organizations
Affordable housing
Area median income

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 12, 2025	Senate	Floor	Action	Introduction and first reading
March 12, 2025	Senate	Floor	Action	Referred to	Housing and Homelessness Prevention
March 19, 2025	Senate	Floor	Action	Comm report: To pass and re-referred to	Taxes

Citations

[
  {
    "analysis": {
      "added": [
        "Inclusion of federal low-income housing credits allocation."
      ],
      "removed": [],
      "summary": "This bill modifies housing assistance provisions under section 462A.051.",
      "modified": [
        "Clarifies application scope to various forms of financial assistance."
      ]
    },
    "citation": "462A.051"
  },
  {
    "analysis": {
      "added": [
        "Clarification on redistribution of unused funds among administrators."
      ],
      "removed": [],
      "summary": "This bill modifies rental assistance program funding under section 462A.2095.",
      "modified": [
        "Priority for rental assistance is refined for households with children."
      ]
    },
    "citation": "462A.2095"
  },
  {
    "analysis": {
      "added": [
        "Provision for nonprofit organizations contracting with schools to receive grants."
      ],
      "removed": [],
      "summary": "This bill clarifies grant funding provisions for schools under section 462A.33.",
      "modified": [
        "Specifies homeowner education requirement for recipients."
      ]
    },
    "citation": "462A.33"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill adjusts eligible recipients for housing grants and loans under section 462A.40.",
      "modified": [
        "Refines disqualified individual and business definitions."
      ]
    },
    "citation": "462A.40"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Adjustments made to the use of proceeds in section 477A.35.",
      "modified": [
        "Clarifies conditions under which funds are spent on qualified projects."
      ]
    },
    "citation": "477A.35"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill revises use of proceeds for aid recipients under section 477A.36.",
      "modified": [
        "Outlines commitment deadlines for project expenditure."
      ]
    },
    "citation": "477A.36"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Modifications to local housing trust fund grants under section 462C.16.",
      "modified": [
        "Specifies grant usage timelines and income eligibility."
      ]
    },
    "citation": "462C.16"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill includes a definition reference for sprinkler systems under section 299M.01.",
      "modified": [
        "Clarifies term as used in highrise sprinkler system program."
      ]
    },
    "citation": "299M.01"
  }
]