Purpose of the Bill

The bill aims to enhance funding for affordable housing in Minnesota by appropriating money from the state’s general fund to support counties, tier I cities, and eligible Tribal Nations. This initiative is designed to address housing affordability and homelessness across the state.

Main Provisions

• Annual Appropriations: The bill provides specific annual appropriations from the general fund for affordable housing aids:

  • $6,800,000 is allocated to counties.
  • $2,000,000 is allocated to tier I cities.
  • $1,200,000 is allocated to eligible Tribal Nations.

• Additional Temporary Funding:

  • For fiscal years 2024 and 2025:
  • An additional $8,500,000 for counties.
  • An additional $2,500,000 for tier I cities.
  • An additional $1,500,000 for Tribal Nations.
  • Funds will also be transferred to the Minnesota Housing Finance Agency to ensure account amounts reach $2,250,000.
  • For fiscal years 2026 and 2027:
  • An additional $17,000,000 for counties.
  • An additional $5,000,000 for tier I cities.
  • An additional $3,000,000 for Tribal Nations.

• Payment Schedule Adjustment: The bill allows for flexible computation and distribution of aid for certain years. For example, payments for 2023 and 2025 aids may be computed later than usual and distributed accordingly.

Significant Changes to Existing Law

The primary change is the introduction of substantial increases in funding from the general fund aimed specifically at supporting affordable housing efforts across the state for targeted groups such as counties, tier I cities, and Tribal Nations. The bill also provides one-time funding boosts for specific fiscal years and includes provisions for adjusted payment schedules to expedite funding delivery.

Relevant Terms

• Affordable housing
• General fund appropriations
• Housing Finance Agency
• Counties and cities funding
• Tribal Nations funding
• Temporary funding increases