Committee advances MHFA policy bill as vehicle for omnibus housing package

Senate File 2552, the annual Minnesota Housing Finance Agency policy bill, was presented to the Minnesota Senate Committee on Housing and Homelessness Prevention as the intended vehicle for the committee’s omnibus housing package.

Chair Port and agency counsel Pedro Painter walked through the bill’s technical and programmatic provisions. Key changes described included adding counties and cities that allocate LIHTC to the section on wage‑theft prevention and responsible‑contractor use; authorizing the commissioner to set formulas and redistribute unused funds for the rent assistance program; allowing nonprofits contracted by schools or cooperatives to receive certain economic development grants; clarifying that volunteer nonprofit board members are not disqualified officers or principals; excluding projects that receive workforce housing development program funds from certain income limits; and tightening deadlines for local housing trust fund grants from eight to five years. The bill also proposed allowing loans under the high‑rise sprinkler grant program and expanding eligible buildings to seven stories or more and households at or below 60 percent AMI.

Chair Port said the bill will serve as the omnibus vehicle and that it will be re‑heard once targets are set. The committee voted to recommend SF 2552 be passed and re‑referred to the Committee on Taxes by voice vote.