MHP Connect

Minnesota Housing State Funding Cut by 5% in Governor’s Proposed Budget

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Created: Wednesday, 16 February 2011 16:24

The budget news for housing is mixed in the wake of the Governor’s budget proposal released yesterday for the 2012-13 biennium. The proposed $77.19 million in state funds represents a 6% cut compared to actual funding for the 2010-11 period, and a 5% cut compared to proposed funding in budget recommendations made last year.

Overall, the Minnesota Housing Finance Agency’s budget prioritizes funding for programs that serve the homeless and very vulnerable, programs that leverage non-state resources, and programs not served well by other sources. However, housing production and rehab take a big hit, even though these activities create jobs and leverage investment.

Read more: Minnesota Housing State Funding Cut by 5% in Governor’s Proposed Budget

Housing Resources: February 2011

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Created: Tuesday, 15 February 2011 12:31

Three new resources look at economic benefits of affordable housing, messaging for housing advocacy, and a serious falloff in rental supply for extremely low income families nationwide.

Read more: Housing Resources: February 2011

Renters’ Credit, Local Government Aid Wrapped Up in Cuts

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Created: Tuesday, 08 February 2011 15:30

As of Monday afternoon, the Legislature passed a bill which, if signed, would permanently reduce the Renters’ Credit for low- and moderate-income Minnesotans and would cut state aid to local governments.

The cuts are included as part of HF 130 the first major budget cut bill of the session, which results in a $900 million reduction in state spending. The bill passed out of conference committee Monday. Once out of conference committee, advocates opposing these cuts will rely upon Gov. Dayton to veto the bill in full, as this bill cannot be line-item vetoed.

Read more: Renters’ Credit, Local Government Aid Wrapped Up in Cuts

Proposed by Dayton: Bonding Boon for Housing

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Created: Thursday, 03 February 2011 16:33

Governor Dayton’s bonding proposal released on January 31, includes a little something for housing. Picking up a housing bonding proposal that didn’t make it last year, the Governor’s $1 billion bonding proposal includes $10 million in non-profit bonds to acquire and rehab foreclosed properties. The bonds, to be issued by Minnesota Housing, would be used for two purposes:

• to acquire and rehab foreclosed properties to be used for rental housing for low- and moderate-income households
• for community land trusts to acquire the land portion of foreclosed properties. This land would be leased to low- and moderate-income homebuyers.

Annual debt service for the bonds is $800,000 for 20 years and would come from the general fund.

This proposal is part of Dayton’s $1 billion bonding proposal designed to create jobs and address important infrastructure projects.  In an interesting approach, Dayton specified $531 million in proposed projects, but left the other $470 million for the Legislature to decide upon.

Click here for full details of the bonding proposal.