Proposal for emergency rental aid stalls in housing committee

The Legislature should step into disaster-mode in the wake of recent immigration enforcement actions, say proponents of a bill that would provide emergency rental assistance.

Sponsored by Rep. Liish Kozlowski (DFL-Duluth), HF3403, as amended, would appropriate $50 million from the General Fund in Fiscal Year 2026 for that purpose.

Just not yet.

Via a 7-7 party-line vote, the bill failed to be approved Wednesday by the House Housing Finance and Policy Committee.

The bill — along with two other bills related to rentals the housing committee heard Wednesday — is included in a DFL-proposed housing stability action plan developed in response to U.S. Immigration and Customs Enforcement’s Operation Metro Surge.

Workers are staying home, children are staying out of school, businesses are closed, and landlords don’t know what to do when renters disappear overnight, Kozlowski said, likening the impact to community disasters such as a tornado, flood or mass layoff.

Citing a significant increase in eviction notices, Kozlowski said emergency rental assistance is needed to stave off a cascading impact of housing insecurity.

Minneapolis City Council Member Aurin Chowdhury said federal action has had a devastating effect on the city and officials are expecting a recovery will take years. She estimates Minneapolis residents need $15 million in rental assistance just for January.

The proposed rental assistance would operate under the same framework as the state’s local homelessness prevention aid program, which is provided $20 million annually per state statute. 

Minnesotans with income at or below 200% of the federal poverty level and are homeless or soon-to-be-homeless would be eligible. The money would go directly to landlords, and $6 million of the $50 million request would be earmarked for distribution through Tribal governments.

Rep. Huldah Momanyi-Hiltsley (DFL-Brooklyn Park) called the bill an economic stabilization tool. “When incomes disappear overnight, housing insecurity follows and the entire community feels the impact of that. Let’s not make the mistake of ignoring the long-term economic consequences.”

Several Republicans said the funding request on the first day of committee hearings is premature and should be made after an understanding the current state budget, committee targets and if systemic needs could be addressed.

“The need is there,” said Rep. Spencer Igo (R-Wabana Township). “It is more than the last couple weeks and the last couple months.”