Agency Planning for Legislative Funds
In May 2023, Governor Walz signed the $1.065 billion housing omnibus bill, the largest single investment in housing in state history. Other legislation brought the total investment in housing to over $1.3 billion.
The housing bill is an increase of $950 million from the Agency’s base budget of $115 million for 2022-2023. An estimated $625 million is allocated to existing programs and $440 million will go to over 15 new programs or activities. This budget responds to the range of housing needs felt by Minnesotans in all regions of the state, while focusing on closing disparities, assisting lowest-income Minnesotans and serving underserved geographies.
The use of approved legislative funds fits into the following categories:
- Capital Resources (50%)
- Housing Stability (25%)
- Homeownership Assistance (20%)
- Other (5%)
What to Expect
We recognize there is extensive community interest in how and when the budgeted housing funding will be available. The answer will vary greatly, depending on the program. Some of the funding goes to existing agency programs and some of the funding created new programs.
Many factors will affect the timeline and availability of the funding for each line item, including whether it requires hiring new staff, conducting public engagement, developing a program guide, and more.
Programs Being Implemented
Programs Being Implemented
The new two-year budget period started in July 2023. Program implementation will be rolled out over time as Minnesota Housing builds capacity.
The following programs are fully created at Minnesota Housing and are rolling out now with some or all additional funding allocated in the new budget:
- Bridges: Rental assistance for families with at least one adult member having a serious mental illness
- Family Homeless Prevention (FHPAP): Short-term assistance to families at risk of homelessness
- Homework Starts with Home: Rent and other housing assistance to families with children that lack housing stability
- Housing Trust Fund: Rental assistance for individuals and families who have previously experienced homelessness
- Homeownership, Education, Counseling and Training (HECAT): Pre-purchase homebuyer counseling and foreclosure prevention counseling services
- Rental Rehabilitation Loans: Rehabs naturally occurring affordable housing and federally subsidized rental housing in Greater Minnesota
Funding for the following will be made available through the Agency’s 2023 Consolidated RFP Selections:
- Challenge (Economic Development and Housing Challenge): Multifamily rental and single-family homeownership new construction, rehab and downpayment assistance.
- Housing Infrastructure: Loans and grants for rental housing development and manufactured housing community
- Preservation (PARIF): Repair, rehabilitation and stabilization of federally assisted rental housing that is at risk of aging out of federal assistance programs
- Workforce Homeownership Development: Development resources to increase homeownership opportunities
The following programs are open or will have funding opportunities available soon:
- Greater Minnesota Workforce Housing: Competitive financial assistance to build market-rate and mixed-income residential rental properties in Greater Minnesota
- Manufactured Home Community Redevelopment Program: Grants for manufactured home park acquisition, improvements and infrastructure
- Publicly Owned Housing Program: Resources to improve public housing with a priority on health and safety improvements, including fire suppression systems and energy efficiency/climate improvements
- Stable Housing Organizational Relief Program: Financial assistance to nonprofits rental properties experiencing significant detrimental financial impacts due to recent economic and social conditions
Note: Funding available for individual organizations is not listed.
Whether a grantee was named in the legislation or is selected through a competitive RFP, all programs and grantees will have specific Agency and state processes and procedures they need to follow.
Most new programs are grants. Learn more at Office of Grant Management.
No Grantees Named
In some cases, specific grantees were named alongside certain items in the housing bill.
If your organization was named, we will work together on a grant contract agreement, which includes a workplan, budget, monitoring through the life cycle of the grant as well as closeout requirements.
If your organization is an anticipated grantee within an existing Minnesota Housing program, the proposed activities must also be allowed under the current program guide. If the proposed activities are not in the current program guide, then the program guide will need to be updated by the Minnesota Housing Board of Directors before a grant can be issued.
We are adapting our Agency structure and hiring new staff to build a strong foundation to support all our programs.
- Hired two new Agency leaders
- Assistant Commissioner for Special Projects
- Assistant Commissioner for Housing Stability Division
- Elevated Housing Stability to its own division
- Posted several new positions, including Director of Local Government Housing Programs
- Hire over 50 new staff members
- Create a Local Government Housing Programs team to implement several of the new programs