CPED recommends $115.3 million general-fund budget for 2026; mayor’s plan shifts some rental supports into school-based program

Community Planning and Economic Development Director Eric Hansen presented the department’s recommended 2026 budget to the Minneapolis City Council Budget Committee on Oct. 17, proposing a $115,300,000 general-funded operating budget and a mix of reductions and one-time additions aimed at preserving housing production and stabilizing existing programs.

Hansen told the committee, “We’re proud to present the CPED’s 2026 supplemental budget recommendations,” and outlined a package that includes roughly $3.5 million in ongoing general-fund reductions and about $11.5 million in mostly non-general-fund additions for 2026.

The budget focuses on four divisions — housing policy and development; economic policy and development; development services; and planning — and reduces the department’s full-time equivalent (FTE) headcount from 243 to 238. Hansen said about 67 CPED positions are at least partly funded by federal sources.

Why it matters: CPED stewards the city’s housing, development and small-business programs. Changes to funding streams and program design affect housing production, shelter capacity and services to small businesses and entrepreneurs across Minneapolis.

Key program changes and numbers

- Affordable housing and trust fund: Hansen recommended a one-time Local Affordable Housing Aid (LAHA) allocation to sustain housing production. The presentation lists a $7,350,000 LAHA allocation dedicated to the Affordable Housing Trust Fund as part of a broader $17,000,000 recommended trust fund budget for 2026. The $7.35 million represents a mix of the new local sales tax (LAHA) and TIF set-asides, Hansen said.

- Stable Homes, Stable Schools: The recommended budget shifts funding from emergency housing vouchers toward Stable Homes,…