Committee advances bill to extend and rebalance state housing tax credit HF3902 amid support from housing groups

Representative Igoe presented House File 3902 to make several changes to the state housing tax credit: align it with the workforce housing development program, add geographic balance between Greater Minnesota and the metro, and repeal the program’s 2028 sunset. Igoe said the program has become an effective tool to incentivize public‑private investment in affordable housing.

Courtney Shoff, policy manager at Minnesota Housing Partnership, told the committee the credit has supported preservation and development across the state and estimated the program helped produce roughly 260 single‑family homes and 1,600 multifamily rental units over three years. Drew Govez of Habitat for Humanity of Minnesota and Henry Parker of CommonBond Communities described how the credit leverages private donations for local housing projects and cited examples of preservation and improvements in Saint Paul and other communities.

Members praised the program’s effectiveness but debated the sunset repeal. Some members said ending the sunset is reasonable given results; others, including the chair, expressed a preference for extending the sunset to preserve a future review point. Representatives also discussed geographic balance and procedural details for allocations; Representative Igoe described the amendment as a housekeeping and balancing measure and said intake of allocations is highly competitive—funds were allocated in under two hours this year.

Representative Igoe renewed his motion to lay HF3902, as amended, over for possible inclusion in the omnibus tax bill.