Minnesota committee discusses $400M for housing infrastructure bonds to address shortage

The Minnesota House Capital Investment Committee convened on March 25, 2025, to discuss critical housing infrastructure initiatives aimed at addressing the state's growing housing crisis. A significant focus of the meeting was the ongoing efforts to secure affordable housing for residents facing displacement and homelessness.

One of the most pressing issues highlighted was the potential bankruptcy of Perspectives, a nonprofit organization that owned several apartment complexes. Residents expressed deep concern about being displaced. Fortunately, Trellis, another nonprofit, stepped in to negotiate a purchase agreement, ensuring that necessary upgrades and preservation efforts would be made to maintain a high-quality living environment for the residents. One resident shared, “When we found out that we didn't have to move, it was a huge relief; this burden I was carrying on my shoulders was finally lifted.”

The committee also discussed the Cobb Cook Place project in Hibbing, which represents a $4 million investment to build 52 new homes, including affordable units and housing for individuals with disabilities and those who have recently experienced homelessness. This development aims to meet a diverse range of housing needs in the community.

In Minnetonka, the committee reviewed a $1 million project at Minnetonka Mills Church, which will create 10 new twin home units on underutilized church-owned properties. These homes will be placed into a community land trust, ensuring long-term affordability for future owners.

Duluth's Welch Place was another highlight, awarded $5.2 million in funding for 30 units of permanent supportive housing. This facility will provide essential services and support for its residents, further addressing the need for stable housing in the area.

Additionally, the Woodlawn Terrace Cooperative in Richfield received a $712,000 investment to improve infrastructure, including repaving roads and connecting to the city water system. This upgrade is crucial for residents who previously relied on a degraded well water supply, which posed health risks and damaged appliances.

The committee also discussed the importance of housing infrastructure bonds as a tool to address the state's housing shortage. Representative Howard introduced House File 1141, proposing $400 million in housing infrastructure bonds to meet the growing demand for affordable housing. Currently, over 600,000 Minnesotans are cost-burdened, spending more than 30% of their income on housing. The proposed funding aims to alleviate this burden and signal to developers that resources are available for new projects.

As the meeting concluded, the committee emphasized the urgent need for continued investment in housing infrastructure to ensure that all Minnesotans have access to safe and affordable homes. The discussions underscored a collective commitment to tackling the housing crisis and improving living conditions for residents across the state.