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Author seeks to let donors use Minnesota housing tax credit to pay for supportive services
Summary
Representative Ray Rauer told the House Taxes Committee HF2901 would expand the state housing tax credit (created 2021) to allow contributions to pay for on-site supportive services for deeply affordable housing; Beacon Interfaith Housing Collaborative testified support, saying service reserves are often the final funding gap.
Representative Ray Rauer brought House File 2901 to the Minnesota House Taxes Committee on April 9, asking lawmakers to add supportive services as an eligible use of the state housing tax credit.
The bill would allow private contributions, eligible for the existing housing tax credit, to be designated for ongoing on-site supportive services -- such as case management, job training, substance use referrals and mental health counseling -- alongside capital funds for construction and rehabilitation. Representative Ray Rauer said the change is aimed at enabling supportive housing for people exiting homelessness and those with high needs to remain viable over time.
Supporters told the…
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