We got to this point because of tireless, unrelenting advocates. They weren’t willing to give up the fight. They weren’t going to be pushed aside. The cheering, dancing, and singing I heard the night we passed this legislation still stays with me. They were saying this is our home, and we belong. I’m elated for that to finally be the case.
Investing in Housing
Also starting October 1, our new dedicated housing investment through a ¼ cent metro-wide sales tax went into effect. This will be a game-changer to address the #1 expense and burden for most facing Minnesota families – the cost of housing. Here’s what you should know:
Persistent underinvestment in housing has contributed to one of the nation’s worst housing shortages. That’s why the cost of homes to own and rent continue to spike. As a result, more than 325,000 households in the metro area are paying more than 30% of their income on housing.
For the first time ever, we are adding significant, dedicated, and consistent revenues to address our housing crisis. We’ll raise an estimated $150M-$200 million per year, which for context, is larger than the entire previous statewide budget for housing. The impact will be significant.
Simply put, we aim to build a heckuva lot more homes while opening doors to opportunity for thousands of families at risk for homelessness. Counties and cities will use new resources to produce more affordable homes - both multi-family and homes to own.
We could see more than 1,000 homes produced per year once resources ramp up. In addition, we fund 3,000 new state-based housing vouchers, an innovative investment that will help us make a big dent in addressing and preventing family homelessness. We know that in and of itself these new dollars will not solve our housing crisis, but it's my hope we have set Minnesota on a new path, where we commit to a future where everyone has the opportunity to find a safe and affordable home.