SF4971

Purpose

• Establish a capital investment program to create and support emergency shelter facilities for individuals and families experiencing homelessness in Minnesota.

What the bill would create

• Two grant funding accounts to support emergency shelter facilities:
  • One in the general fund.
  • One in the bond proceeds fund.
• Grants awarded by the commissioner (Department of Human Services) to eligible projects for emergency shelter facilities.

Eligible applicants and facilities

• Eligible applicants include:
  • Tribal governments.
  • Not-for-profit corporations under section 501(c)(3) of the Internal Revenue Code.
  • Statutory or home rule charter cities.
  • Counties.
  • Housing and redevelopment authorities under section 469.003.
• An emergency shelter facility is a place that provides a safe, sanitary, accessible, and suitable shelter for people experiencing homelessness, whether shelters operate day, night, or both.

Project criteria and priorities

• The commissioner must prioritize projects that:
  • Add new emergency shelter facilities or expand options.
  • Renovate existing facilities to operate as emergency shelters.
  • Address deferred maintenance or repair needs, or replace failing mechanical, electrical, and safety systems.
  • Acquire and construct new emergency shelter facilities.
  • Improve safety, sanitation, accessibility, and habitability of existing facilities, including major system improvements.
• Specific emphasis on:
  • Renovating existing facilities not currently operating as emergency shelters.
  • Major projects that fix deferred maintenance or safety system failures.

Eligible uses of grant money

• Grants may cover 100% of total project capital expenditures or a specified project phase, up to $1,000,000 per project.
• All projects funded must meet applicable state and local building codes at project completion.

Leasing and management

• Eligible recipients may enter into a lease or management agreement to operate the shelter, subject to section 16A.695.

Competitive process and geographic focus

• A competitive request-for-proposal (RFP) process must be used to identify projects and eligible applicants statewide.
• At least 40% of the appropriation must be awarded to projects located in Greater Minnesota.
• If there aren’t enough eligible requests from Greater Minnesota to meet the 40% target, the remaining funds may go to other eligible projects.
• For new emergency shelter facilities funded through acquisition and construction, priority goes to projects where the applicant provides at least 10% of the total project funding.

Funding sources and limits

• Proceeds from state general obligation bonds may be used only for grants to:
  • Statutory or home rule charter cities.
  • Counties.
  • Housing and redevelopment authorities under section 469.003.
• General fund appropriations may be used for grants to:
  • Tribal governments.
  • Not-for-profit corporations under section 501(c)(3).
  • Statutory or home rule charter cities.
  • Counties.
  • Housing and redevelopment authorities under section 469.003.
• Funds are available until encumbered or spent, subject to section 16A.642.

Related requirements

• Some aspects reference existing law for governance and administration, including eligibility and oversight provisions tied to the entities listed above.

Significance

• Creates a targeted state program to expand and improve emergency shelter capacity.
• Establishes a clear funding framework, eligibility rules, project criteria, and geographic priorities to guide investments.

Relevant Terms - emergency shelter facility - grants - eligible applicant - Tribal government - not-for-profit corporation - 501(c)(3) - general fund - bond proceeds fund - capital expenditures - deferred maintenance - mechanical systems - electrical systems - safety systems - acquisition and construction - renovation - safety, sanitation, accessibility, habitability - state and local building codes - lease or management agreement - competitive request for proposal (RFP) - Greater Minnesota - housing and redevelopment authority - section 469.003 - section 16A.695 - section 16A.642 - statutory or home rule charter cities - counties