Minn. committee adopts housing finance bill to authorize $100M in bonds, refer to Ways and Means

The House Housing Finance and Policy Committee on April 8 adopted an amended housing finance and policy package, House File 1141, that would authorize $100,000,000 in Housing Infrastructure Bonds (HIBs), direct $20,000,000 toward a Greater Minnesota workforce housing program and channel Tyler settlement funds into the Family Homeless Prevention and Assistance Program (FHPAP). The committee voted to refer the bill, as amended, to the Committee on Ways and Means.

The legislation, presented by Chair Howard, would also include targeted investments such as $150,000 for homeownership counseling through HECAT and a $150,000 pilot for senior housing, and it directs existing FHPAP providers — counties and long-standing social-service partners — to administer rental-assistance dollars drawn from the Tyler settlement rather than creating a new program. "The bill authorizes 100,000,000 in housing infrastructure bonds," Chair Howard said while walking members through the package, describing the measure as a bipartisan effort to address rising evictions and Minnesota's housing shortage.

The bill finances those items largely by redirecting accumulated investment earnings held by the Minnesota Housing Finance Agency (MHFA). Jennifer Ho, commissioner of Minnesota Housing, told the committee that the agency is committed to stewardship but warned that legislative transfers of interest earnings could have unintended consequences for the agency's operations and investor relations. "This type of transfer would create a responsibility to notify the rating agencies and investors," Commissioner Ho said, adding that some interest earnings were being held to cover multi-year grant implementation and compliance costs.

Members pressed Ho on agency operations and financial reliability. Representative Nash criticized the idea of using variable interest earnings for staffing, calling that claim "exceptionally disingenuous" in committee questioning, while Ho explained MHFA does not receive traditional operating adjustments and that some interest earnings are intended to fund the seven-year costs of administering appropriated programs.

Representative Norris introduced an amendment (A2) to dedicate $15,000,000 of HIB proceeds for acquisition and infrastructure improvements at manufactured home parks after citing frustration that MHFA had not prioritized park preservation; Norris later withdrew the amendment but said she hoped the record would reflect bipartisan support for prioritizing manufactured housing. Another proposed amendment (A3) would have withheld Local or State Affordable Housing Aid from cities that impose moratoriums on new housing; that proposal was also withdrawn.

The committee adopted a technical A1 amendment to remove a tax provision so it could be carried in a tax bill, and it adopted an A4 amendment at the agencies' request to remove a "lived experiences" provision. After amendments were resolved, the committee adopted the DE2 as amended and moved the bill forward.

A broad set of providers and housing advocates urged additional funding for supportive housing and FHPAP during the public-comment portion. Anne Smedick of the Housing Justice Center described uncertainty in Continuum of Care funding from HUD and urged state action to protect supportive housing. Christine Davis of Hearth Connection warned the committee that program instability could force providers to reduce or close programs, and Michael Dahl of Homeline requested a $1,000,000 appropriation to sustain Minnesota's tenant hotline.

The committee closed with bipartisan recognition of the package's scope and sent HF1141 as amended to Ways and Means; nonpartisan staff were directed to make technical corrections. No final enacted law resulted from the meeting; the referral moves the bill to the next step in the process.

Votes at a glance: the A1 and A4 amendments were adopted by voice vote; the DE2 as amended was adopted by the committee; House File 1141 as amended was referred to the Committee on Ways and Means.