SF4565

Purpose

• To increase the funding for the Greater Minnesota workforce housing development program and clarify how those funds are managed within the state budget.

Main Provisions

• Appropriation framework:
  • The bill revises how amounts for housing programs are totaled and managed in Laws 2025 chapter 32, article 1, section 2, subdivision 1.
  • It states that appropriations are available for the housing development fund and, unless otherwise specified, are part of the agency’s permanent budget base.
• Workforce Housing Development program details:
  • The appropriation is for the Greater Minnesota workforce housing development program, under Minnesota Statutes section 462A.39.
  • If requested by the applicant and approved by the agency, funded properties may include a portion of income- and rent-restricted units. Funded properties may also include owner-occupied homes.
  • The base amount for this appropriation is $2,000,000 in fiscal year 2028 and thereafter.

Significant Changes

• Funding increase and structure:
  • Establishes a base appropriation of $2,000,000 for the workforce housing program beginning in FY 2028 and continuing thereafter.
  • Allows funded properties to include income- and rent-restricted units and potentially owner-occupied homes, expanding the types of housing that can be funded.
• Budget treatment:
  • Confirms that these appropriations are part of the housing development fund and, unless specified otherwise, become part of the agency’s permanent budget base.

Practical Impact

• More financial support for creating and maintaining housing for the workforce in Greater Minnesota.
• Greater flexibility for funded projects to mix different housing types (rental and ownership) tied to income restrictions.

Relevant Terms - workforce housing development program - Greater Minnesota - housing development fund - permanent budget base - Minnesota Statutes section 462A.39 - income-restricted units - rent-restricted units - owner-occupied homes - appropriation - fiscal year 2028