Conference committee advances $165 million housing package

The size and scope of an agreed-upon housing package surprised even its negotiators.

“If you had told us at the beginning of session we would pass a $165 million housing bill in the final days, no one would have believed it,” said Rep. Spencer Igo (R-Wabana Township), before a housing finance and policy conference committee approved an agreement Tuesday.

It includes funding for all types of housing across the state, Igo said, expanding opportunities for renters, first-time buyers and manufactured housing residents, while providing aid to some of the state’s most vulnerable residents.

Sponsored by Rep. Michael Howard (DFL-Richfield) and Sen. Lindsey Port (DFL-Burnsville), HF1141*/SF203, as amended, includes most of the funding provisions offered by the House, but few Senate policy provisions.

If approved by both chambers, possibly as soon as Wednesday, the bill would go to the governor for action.

Spending

The bill would authorize the sale of $100 million in housing infrastructure bonds, using reallocated funds to service the debt, and provide an additional $40 million for Family Homeless Prevention Assistance Program by reallocating funds previously set aside to assist counties with the Tyler Settlement.

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It also would appropriate $25 million from interest earnings at Minnesota Housing:

• $14.3 million would go to Greater Minnesota workforce housing;
• $4 million for supportive housing programs, which are experiencing uncertain federal funding;
• $4 million for manufactured home infrastructure grants;
• $425,000 for statewide tenant education and hotline services;
• $150,000 for a homeownership education program; and
• $150,000 for the Minnesota Nice Homeshare pilot program in St. Louis County, which helps match older adults who have rooms to rent to tenants.

Policy provisions

The Senate’s proposed “Manufactured Homes Bill of Rights,” a ban on homeowners associations prohibiting certain flags such as POW/MIA flags, and a limit on private equity purchases of single-family homes were removed.

Policy provisions included in the agreement are aimed at improving transparency at the housing agency, including reporting on its interest earning and sharing its agency accounting subsystem with House and Senate fiscal staff.

Howard called the final package “a really, really great bill” that will help thousands of Minnesotans. “It will put our state in a stronger position in partnership with Minnesota Housing,” he said, adding the reforms will increase transparency and strengthen the agency.