Minneapolis council approves $2.8 million rental assistance package after contentious funding debate
Loading...
Summary
After hours of debate over funding sources, the council approved a $2.8 million rental assistance package to be administered via Hennepin County, with an amended joint powers agreement asking for a 50% AMI cap for the added funds and commitments to expand providers and geographic reach.
The Minneapolis City Council on March 26 approved a $2.8 million rental assistance package intended to expand emergency rental aid for residents struggling to pay rent.
Council Member Chavez presented the measure, saying it would "provide $2,800,000 in additional rental assistance funding" and help "keep more people in their homes." (Council Member Chavez)
Nut graf: The funding package passed after multiple amendments and a lengthy debate over whether the money should come from the general fund, the Affordable Housing Trust Fund (local affordable housing aid, LAHA) or contingency reserves. A Whiting amendment to shift $900,000 from general fund to the Affordable Housing Trust Fund failed 10-3, while a motion tied to the joint powers agreement with Hennepin County that sought a minimum 50% AMI cap on the incremental $1.8 million and a commitment to broaden provider access passed; the final motion as amended carried 11-2.
Key details and votes - The Whiting amendment (reduce general fund by $900,000 and increase Affordable Housing Trust Fund contribution) failed on a 10-nay, 3-aye roll call. - An amendment (60.2) amending the JPA to seek a minimum 50% AMI cap for part of the additional appropriation and to secure county commitments on additional providers passed unanimously in the roll call on the amendment; the underlying motion as amended then carried 11 ayes and 2 nays.
Council members debating the measure expressed competing priorities: several urged maximizing rental aid now to prevent evictions, while others warned against depleting the Affordable Housing Trust Fund and urged fiscal caution to protect long-term affordable-housing production. Council Member Whiting noted philanthropic matching tied to the package: "...the Wilson Family Foundation ... is going to match the city of Minneapolis's dollars up to $3,000,000," and framed the $2.8 million figure as part of that matching strategy. (Council Member Whiting)
Staff said the city would partner with Hennepin County, which had already set up an emergency-rental-assistance delivery system and chosen vendors via an RFP; staff and county officials said additional providers could be added via contract amendment to ensure geographically equitable access, including North Side providers if capacity and procurement processes allow. City planning director Eric Hansen read county data showing that in 2025 about 73% of county-funded emergency rental assistance reached Minneapolis residents, and that outreach reached ZIP codes in North and Northeast Minneapolis.
What the motion does: The council approved the funding package and the amended JPA language directing staff and county partners to increase coverage and ask for a 50% AMI cap in the amendment process for the additional appropriation. Council members requested staff follow-ups on provider selection and the JPA amendment process.
What to watch: Staff said county contracts were established through RFP and additional culturally specific providers would require procurement amendments; council members said they would track geographic distribution and program eligibility during the JPA amendment process.
