Senate proposal would add $30 million annually to workforce affordable homeownership program

Senator Putnam presented Senate File 1711, requesting an annual transfer of $30,000,000 (per year for 2026 and 2027 as described in committee) from the general fund to the Housing Development Fund to support workforce affordable homeownership programs. The sponsor described the proposal as a way to produce entry-level, owner-occupied homes statewide and emphasized demand from agricultural and rural employers for workforce housing.

Witnesses emphasized the program's role in producing permanently affordable owner-occupied homes and the leverage funding provides for community land trusts (CLTs), Habitat affiliates and nonprofit builders. Jeff Washburn (Minnesota Community Land Trust Coalition) said Minnesota has more CLT units than any other state and that roughly 1,600 permanently affordable homeownership units exist in the state; he estimated roughly $49,000,000 has flowed into affordable homeownership programs over the past three years with about $19,000,000 going to CLTs. Habitat Minnesota and local Habitat affiliates described projects that relocate and rehabilitate donated homes in rural communities and cited recent grants that enabled greater production and partnership with lenders. Central Minnesota Habitat for Humanity said demand has outpaced supply: it builds two homes per year normally but raised production to five this year because of recent state funds and reported hundreds of families on waiting lists.

The committee laid Senate File 1711 over for possible inclusion; no appropriation vote was taken in committee.