The 2023 Legislative Session in Review!

In December of 2021, MHP convened partners and invited them to join us in asking the Minnesota Legislature to invest $2B in 2022. Gridlock had us come back in 2023, again asking for $2B. On Jan 11, 2023, MHP and our partners held a rally in the Capitol Rotunda. The crowd in the rotunda chanted “$2B in 2023!” Now that lawmakers have passed all the budget bills, it is clear that lawmakers heard that rallying call and delivered.

Housing Omnibus Bill: $1B additional one-time, $50M additional on-going, and a nearly $400M/year in 7-county metro

One of the biggest highlights of this session is the $1B in additional direct appropriations to Minnesota Housing. Minnesota Housing’s FY24-25 budget is 850% greater than its current base budget. The Housing Omnibus bill makes critical investments throughout the housing continuum. This biennium, Minnesota Housing will have over $600M in direct state appropriations to produce and preserve more single-family homes, manufactured home parks/cooperatives, and multifamily rental homes. Minnesota Housing will have more than $450M in resources to increase access and provide choice and opportunity for one’s housing through rental assistance, homebuyer counseling and financial assistance. 

Additionally, the Housing Omnibus bill includes a seven-county metro wide sales tax. The tax will raise nearly $200M per year in coming years. These resources will be distributed among metro based public housing authorities and city and county governments. 25 percent of the funds will fund rental assistance, 25 percent of funds will go directly to cities, and 50 percent of the funds will go to counties. Cities and Counties can use these resources for emergency rental assistance, to support nonprofit housing developers, and build and preserve more affordable homes. Download the final spreadsheet for the Housing Omnibus Bill here.


Housing was a top priority for the tax committees, as lawmakers provided property tax relief to homeowners and renters. Lawmakers significantly expanded the Renter’s Credit and made it easier for renters to claim their credit. As a result of the bill, an estimated 119,000 more Minnesotans will receive the credit.  The bill also increases the property tax refund for homeowners. Lawmakers provided a one-time boost to both the renter and homeowner property tax refunds.  Another significant change was to the 4d tax classification will result in over $60M in property tax savings for participating units. 

Owners of multifamily rental homes will see their property taxes assessed at a single .25 rate. The tax bill also includes an additional $40M for the workforce and affordable homeownership program, establishes a local county housing aid program and funds it at $45M this biennium, and creates a credit to incentivize manufactured home park owners to sell to existing residents. In addition to housing-specific line items in the bill, the bill funds the Minnesota Child Tax Credit. It’s not clear yet how many families will receive the credit, but it will drastically reduce child poverty in Minnesota. And, Tribal nations will get aid, which can be used for housing.  

Bonding: Nearly $76M in housing and $21M in shelter

In the final hours of session, the Legislature passed two bonding bills. A cash bill invests $850.7M and the other invests $1.3B from the proceeds of general obligation bonds, $219.2M from the Transportation Fund, and $224.9 from the General Fund. The bills invest $30M in cash and $41.87M in general obligation bonds for public housing rehabilitation. The bill also includes $3M for a Greater MN Housing Program and $1M to the City of Minneapolis for Satori Village. There is over $21M in funding to five specific emergency shelters.  

Health & Human Services: Nearly $200M

The Health and Human Services bill includes $100M in one-time funding in shelter capital, a $30M increase in FY24-25 and $55M in FY26-27 in the Emergency Shelter Program, $6M this biennium and next for transitional housing, $30M FY24-25 and FY26027 in Homeless Youth Act, $4.25M in FY24-25 and $2.5M in FY26-27 in Safe Harbor, and $850K inFY24-25 and $1.55M inFY26-27 for the Homeless Management Information System. Hennepin and Ramsey Counties will each receive $11.4M in one-time funding to provide services to people experiencing homelessness. The bill includes modifications to the Housing Support Program to allow individuals with unearned income to keep more money.  

Environment and Climate:

The Environment and Climate Omnibus invests $39M for pre-weatherization and weatherization activities and  funds a number of programs to help homeowners afford things like heat pumps and electric panels. The bill establishes the Minnesota Climate Innovation Authority/Green Bank. The Green Bank can fund housing related activities that incorporate clean energy technologies.  The bill changes the building code process to help Minnesota achieve an eighty percent improvement in annual net energy consumption by 2036. Several of the state’s investments will help leverage new Federal funding from the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA)