Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Workforce Housing Development Program topic
No spam. Unsubscribe anytime.
Senate hearing spotlights demand for workforce rental housing; bill seeks $20 million for developments
Summary
Senate File 1512 would appropriate $20 million to Minnesota’s Workforce Housing Development Program; sponsors and witnesses said the program has funded hundreds of units in Greater Minnesota but demand exceeds supply.
State lawmakers and housing advocates urged the Minnesota Senate Housing Committee to fund the Workforce Housing Development Program, saying the program delivers market‑rate rental units that employers need.
Senator Paul Putnam told the committee that Senate File 1512 would appropriate $20 million to the Workforce Housing Development Program, which provides grants and deferred loans for construction, acquisition and financing related to market‑rate rental workforce housing. Putnam said grants and loans are capped at 50% of total development cost and that projects must meet local vacancy‑rate and employer proximity criteria to qualify.
"Minnesota Housing announced in September 2024 that $38,700,000 had been approved to build 832 market-rate rental units across Greater Minnesota," Putnam said, noting the program was funded previously and that demand remains high. He said the agency had record requests and funded only about half of qualified applications.
Putnam described examples of projects underway: a developer (D.W. Jones) received funding last year for eight communities and completed 348 units that are currently occupied. He said the agency prioritized projects in communities with employers such as Marvin, Polaris, Digi‑Key and Long Prairie Packing.
Supporters told the committee the program has a proven record but requires additional resources to meet demand. The bill would prioritize projects in communities with populations under 30,000 and requires a local match of $1–$2 for each state dollar in most cases, per Putnam's description.
Action: Senate File 1512 was laid over for possible inclusion in a future omnibus. Committee members and testifiers emphasized program success and urged continued funding to meet unmet requests.
The committee did not take a final vote on the bill at the hearing; senators and testifiers asked staff and Minnesota Housing to continue coordination on awards and matching requirements.
