Legislative Update from MHP's Policy Director, Libby Murphy

The Legislative break began Wednesday. Most committees have put together their omnibus spending bills. Below is a summary comparing the Governor, House, and Senate proposals for spending the additional $1B one-time spending target and $50M in new additional ongoing funding for Minnesota Housing. After break, lawmakers will return to negotiate and compromise to put together a single spending proposal. MHP anticipates conference committee will begin around the week of April 17. Conference committee is the process whereby members from the Senate and House put together one omnibus bill. Usually, conference committee is comprised of several members of the majority and two members of the minority (one from the House and one from the Senate).

Included in the House’s omnibus housing bill is a provision to raise the seven-county metro sales tax (by $.25) to fund rental assistance and provide capital for new development and preservation of affordable homes. The increase raises $306M in '24-25 and $393M in '26-27. 25% raised would support a metro rental assistance program, with 60% invested in a county aid account, and 15% invested in a city aid account. There is a distribution factor based on the number of cost-burdened households in each jurisdiction. The bill combines two bills Representative Howard has worked on this session, a metro sales tax to fund transit and housing, and a county and city local housing aid program. Funding for the housing LGA idea was included in last year’s tax omnibus bill.

The provision was included in the original Senate omnibus bill, but was amended out due to concerns among some Senators. Its inclusion in the House bill means it will be considered in conference committee.

MHP and MHP’s Capitol Pathway’s intern Micah Coatie (as an individual) testified in support of this metro sales tax. In all of MHP's testimony, we urged the Legislature to pass a statewide constitutional amendment to support housing needs statewide. The inclusion of this provision has elevated the conversation about a need for dedicated revenue.

In addition to the omnibus bills, Governor Walz signed into law a bill to immediately appropriate $50M to the Family Homeless Prevention and Assistance Program (FHPAP). MHP and the ERASE Campaign,  played a central role in getting the funds passed (see article below).

MHP will follow up this spending summary with a more depth overview of policy provisions included in both housing omnibus bills.

The House and Senate have also put together a “mini” omnibus tenant policy package. The package includes a number of provisions that have been on the Governor’s agenda for several years, including eviction expungement in certain instances, enacting a fourteen-day eviction notice period, and Source of Income (SOI) protections. The House bill includes SOI, while the Senate amended SOI out of the bill in the Judiciary Committee. Chair Latz objected to SOI; he thinks it forces landlords into contracts with the federal government. Because SOI is included in the House bill, it will be negotiated in conference committee. The House and Governor are supportive of SOI and MHP is optimistic that SOI will be included in the final tenant policy package.

MN ERASE Efforts Help Lead to $50M in Emergency Rental Assistance for MN

On behalf of the Minnesota ERASE Campaign, we thank the Governor, lawmakers, and Minnesota Housing for the passage of bill HF 2271, which includes an immediate allocation of $50M in emergency rental assistance (ERA) for the Family Homelessness Prevention and Assistance Program (FHPAP)! FHPAP provides supportive services and financial assistance to households at imminent risk of homelessness or those currently without housing.

The Minnesota ERASE Campaign (End Rental Arrears and Stop Evictions) advocated for lawmakers to approve emergency rental assistance (ERA) before the end of session, and to ensure ERA will reach the lowest income and most marginalized renters. With Minnesotans facing eviction in historically high numbers, ERA will help individuals and families remain housed across our state.

The MN ERASE campaign is affiliated with the National Low Income Housing Coalition’s national ERASE Project. Through the efforts of MN ERASE, advocates elevated the need for emergency rental assistance to government and lawmakers. MN ERASE convened renters, landlords, services providers, housing and redevelopment authorities, and other housing advocates to develop ERA recommendations to Minnesota Housing and lawmakers. FHPAP is a critical resource to help prevent evictions and homelessness, and we are gratified that these funds will provide critical support to Minnesota families who are struggling to make ends meet.

Co-convenors of the MN Erase Campaign include ACER (African Career Education Resource); Housing Justice Center, and MHP. For more information on MN ERASE, go to: mhponline.org/minnesota-erase-campaign/

Join on April 14th for our Next Legislative Update!

Photo: Representative Michael Howard and Senator Lindsey Port

The Minnesota Legislature is on spring break this week and we are now just 46 days away from the Legislature's required adjournment. With the end of session looming we can fully expect business to happen furiously upon members' return. In order to help you stay on top of all the latest happenings at the Capitol, MHP is hosting another Legislative Update. Please join us Friday, April 14th at 10 a.m. to hear updates directly from lawmakers and community partners about the latest developments in St. Paul. 

Key Upcoming Dates:

• Legislative Spring Break: Begins April 4 and runs through Monday, April 10. Business  will resume Tuesday, April 11.
• Legislature is required to adjourn: May 22

Join the Campaign for a Constitutional Amendment for Housing!

“Ensuring our children and families have access to safe and affordable housing is central to our commitment to making Minnesota the best state for kids to grow up. Housing is a basic need that every Minnesotan deserves.” —Governor Walz

If you agree with Governor Walz, as we do, you know that the need for housing investment is continuing. A solution is required that—like the housing crisis—is ongoing. QUESTIONS? bit.ly/CA4Housing_FAQ

ourhomesmn.org

CURA Publishes Report on USDA's Section 515 Program

A new report examines the challenges of preserving housing enrolled in USDA's Section 515 Program - which is often the only affordable housing available to rural residents. This research effort was a multi-year collaboration between the Center for Urban and Regional Affairs (CURA), Housing Justice Center, and MHP. For MHP, this report illustrates the intersection and cross-collaboration between the organization's three program areas: our research, policy, and community development departments. 

Report Graphics by Kia Lee (Graphic Designer), USDA 515 Report, Center for Urban and Regional Affairs 2023

MHP Releases 2023 State Housing Profile

MHP announces the 2023 State Housing Profile, a precursor to MHP’s seminal State of the State’s Housing report. This most recent edition of the report finds racial disparities in homeownership in Minnesota persist and are among the worst in the nation. While 78% of white households own their home, only 31% of Black households are homeowners in Minnesota.