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Minnesota Housing seeks $7 million for public‑housing preservation as demand outstrips funds
Summary
Minnesota Housing told the committee it needs $7 million in the governor’s bonding recommendation for public‑housing preservation to repair aging public housing, preserve accessibility and health/safety systems, and leverage prior federal and state infusions; officials said the program is oversubscribed.
Minnesota Housing Commissioner Jennifer Ho told the Senate Committee on Capital Investment on Feb. 25 that the agency seeks $7 million in bonding for public‑housing preservation and described broad, multi‑year capital needs in publicly owned housing across Minnesota.
Ho said about 21,000 public housing units house roughly 36,000 people across the state and that most public housing is aging: "95% of public housing is more than 40 years old," she told the committee, adding that about 65% of public‑housing households have annual incomes under $15,000. The department said public housing authorities report capital needs in the hundreds of millions statewide; Minnesota Housing cited an estimated capital need of more than $500 million for public housing authorities between 2020 and 2024.
Program purpose and use: Minnesota Housing described the general obligation bond‑funded preservation program as focused on health, safety and infrastructure: elevator replacement, plumbing and roof work, fire‑suppression upgrades, accessibility improvements and related mechanical system repairs. Commissioner Ho highlighted that recent appropriations provided larger cash infusions (including a $877 million package in 2023 that used cash in lieu of bonds) and that Minnesota Housing is running highly oversubscribed funding rounds for preservation projects.
Current pipeline and demand: Ho said Minnesota Housing currently has an open funding round of $40 million (cash) and has received 58 initial expressions of interest totaling about $103 million in needed repairs. Ho said prior funding rounds were heavily oversubscribed and that the program serves many Greater Minnesota communities as well as Metro area properties.
Questions from the committee focused on ownership and operations: Commissioner Ho clarified that Minnesota Housing does not own public housing properties — local public housing authorities or housing and redevelopment authorities own and operate the units; Minnesota Housing administers capital programs and grant allocations. Ho also noted federal uncertainties at the U.S. Department of Housing and Urban Development (HUD), including a temporary pause and proposed staffing reductions in HUD program areas that might affect federal draws, though she said projects already under construction have continued to draw committed HOME funds.
Ending: Minnesota Housing asked the committee to support the governor’s $7 million recommendation and highlighted the ongoing pipeline of preservation needs; no formal committee action was taken at the hearing.
