Bill to authorize $400 million in housing infrastructure bonds introduced to Capital Investment Committee

Representative Howard introduced House File 1141 on March 25, a bill that would authorize $400 million in housing infrastructure bonds to fund affordable housing projects across Minnesota.

Howard told the Capital Investment Committee the proposal would deploy the state’s primary tool for financing affordable housing — housing infrastructure bonds — to build rental and homeownership options statewide. He emphasized rising housing cost burdens, saying more than 600,000 Minnesotans are cost-burdened (paying more than 30% of income for housing).

Kelly Law of the Minnesota Consortium of Community Developers, testifying in support, said nonprofit affordable housing developers face unprecedented operating challenges — increased operating costs, rental arrears, rising insurance costs and public safety issues — and that without HIB investments similar projects would not be feasible. She described a recent Project for Pride in Living development (40 units for people with substance use disorders) that required HIB funding to be built.

Howard and supporters argued that HIBs both preserve existing federally assisted housing and support new construction, and that statutory and programmatic uses should be preserved. The bill was presented on an informational basis; no committee action or vote was taken during the hearing.

Committee members asked technical and policy questions during the broader housing discussion earlier in the hearing; Representative Howard closed his remarks by urging action to “keep the pipeline flowing” so projects can move forward before construction costs rise further.