Purpose

Provide a one-time emergency rental assistance funding to help Minnesota households experiencing homelessness or at risk of homelessness due to a housing crisis. The aid is funded from the general fund and is aimed at counties and tribal governments to distribute to eligible renters.

Main Provisions

• Funding and recipients
  • Appropriates $44,000,000 in fiscal year 2026 to counties.
  • Appropriates $6,000,000 in fiscal year 2026 to tribal governments.
  • Both amounts are one-time appropriations.
• How funds are distributed
  • Counties must distribute the aid using the county distribution formula in Minnesota Statutes section 477A.30, subdivision 3.
  • An equal share of the tribal government aid must be paid to each tribe that chooses to receive a distribution under Minnesota Statutes section 477A.30, subdivision 3a.
• Purpose of funds
  • Money received by counties and tribal governments must be used only for rental assistance to eligible recipients.
• Eligibility for rental assistance
  • Household income at or below 200% of the federal poverty level.
  • Must be a Minnesota resident.
  • Must be homeless or at imminent risk of homelessness and in need of financial assistance due to a housing crisis.
• Use and accountability
  • Funds must be spent within 180 days of receipt; any unspent funds must be returned to the commissioner of revenue and, if still unspent after that period, canceled to the general fund.
  • Rental assistance may be administered by the same entities allowed to administer family homeless prevention and assistance programs under Minnesota Statutes section 477A.30, subdivision 4, paragraph a.
• Tribal government definition
  • The term “Tribal government” has the meaning given in Minnesota Statutes section 477A.30, subdivision 1, clause 4.

Administration, Timing, and Conditions

• Timelines for payments
  • The commissioner of revenue must pay counties no later than 15 days after the effective date of this section, using the 2026 population data and distribution factors in 477A.30, and the appropriation amount specified.
  • The commissioner must pay an equal share of the tribal aid to each tribal government that opted to receive distribution under 477A.30, subdivision 3a, no later than 15 days after the effective date.
• Use in accordance with existing programs
  • The rental assistance funded here aligns with and uses the same administration framework as existing rental assistance and homeless prevention programs under the referenced statutes.

Significance and Impact

• This bill creates a targeted, short-term boost for rental assistance to help households facing housing instability, leveraging existing distribution formulas and program structures to accelerate funding and administration at the county and tribal levels.
• It tightens timeframes for spending and requires return of unspent funds to ensure timely use and minimize leftover funds.

Key Changes to Law (at a glance)

• Establishes a one-time appropriation from the general fund for emergency rental assistance to counties and tribal governments.
• Uses existing distribution methods from 477A.30 for allocation to counties and tribes.
• Sets strict eligibility criteria based on income, residency, and housing crisis status.
• Creates a 180-day spending window with a rollback provision for unspent funds.

Relevant Terms - emergency rental assistance - general fund - counties - tribal governments - 477A.30 (Minnesota statute) - subdivision 3 - subdivision 3a - rental assistance - homeless - imminent risk of homelessness - 200 percent of the federal poverty level - Minnesota residents - housing crisis - equal share - onetime appropriation - administration - 180 days - unspent funds canceled to the general fund