Housing omnibus provides $100 million in housing infrastructure bonds, $40 million for homelessness prevention

A new law aims to help address Minnesota’s housing needs by authorizing the sale of $100 million in housing infrastructure bonds and providing emergency relief for housing costs.

Sponsored by Rep. Michael Howard (DFL-Richfield) and Sen. Lindsey Port (DFL-Burnsville), the law also improves legislators’ line-of-sight on the Minnesota Housing budget, creates new investment opportunities for local governments, and supports a pilot program allowing older adults to share their homes.

Most provisions took effect May 19, 2026, unless noted otherwise.

Finance provisions

The law provides $163 million in new housing investments without using additional General Fund dollars.

Instead, it repurposes unspent funds set aside for Tyler v. Hennepin County settlement claims and allocates some interest earned from investment accounts linked to the $1 billion housing appropriation from the 2023–24 budget.

Funds provided will finance the bond sales as well as result in an additional $40 million for the Family Homeless Prevention and Assistance Program, which can be used for emergency rental assistance.

The law also redirects $25 million of Minnesota Housing Finance Agency investment earnings to provide:

• $14.275 million for the Greater Minnesota Workforce Housing Development Program;

• $4 million for supportive housing providers facing gaps due to uncertain federal funding;

• $4 million for grants to improve infrastructure at manufactured home parks;

• $425,000 for a grant to a statewide tenant education and hotline service;

• $150,000 for homeownership education, counseling and training; and

• $150,000 for the Minnesota Nice HomeShare pilot program in St. Louis County to connect older adults with extra space to renters who need a home.

[MORE: View the spreadsheet]

Policy provisions

The new law clarifies the distinction between Minnesota Housing’s traditional banking operations and its management of state-appropriated funds. New reporting requirements aim to provide greater oversight of how state tax dollars and their associated investment earnings are used.

Othe policy provisions will:

• allow cities, counties, and Housing and Redevelopment Authorities to invest in high grade securities issued by companies with a mission to develop local multifamily housing;

• ensure stipends earned by participants in lived experience engagement opportunities are not counted as income for the purposes of benefit eligibility;

• require reporting on how Minnesota Housing can give legislative staff remote access to Minnesota Housing’s accounting subsystem; and

• permit the Minnesota Housing board to meet remotely, provided the meetings are livestreamed and archived. This provision takes effect Aug. 1, 2026.

HF1141*/SF203/CH100

HF1141* / SF0203 / CH100