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Committee re-refers state housing tax credit bill after supporters urge repeal of sunset and geographic balance
Summary
The House Housing Finance and Policy Committee re-referred an amended bill on the state housing tax credit to the Taxes Committee after testimony from housing advocates who said the program quickly became oversubscribed and urged repeal of the sunset and stronger geographic distribution.
The House Housing Finance and Policy Committee on Feb. 25 re-referred an amended bill on the state housing tax credit to the Taxes Committee after several supporters described the program as an effective public‑private financing tool that needs a permanent place in state tax policy.
Author and bill sponsor described House File 3902 as an update to the state housing tax credit that would repeal the program’s sunset and adjust income and geographic eligibility to spread benefits across greater Minnesota and the Twin Cities. The sponsor said the program’s rapid uptake shows Minnesotans want to invest in affordable housing statewide.
Courtney Shop, policy manager at Minnesota Housing Partnership, told the committee the credit has become “a tremendously successful program” and cited the most recent application round: “In less than two hours, Minnesota Housing received 408 contribution requests for over $15 million, well surpassing the $9.9 million credit cap,” she said, arguing the oversubscription demonstrated strong statewide demand.
Kristin City, president and CEO of Habitat for Humanity of Minnesota, said the program helps local affiliates leverage private donations to build starter homes and affordable homeownership opportunities, and urged lawmakers to repeal the sunset so the credit can continue enabling locally driven projects.
Nathan Thompson, executive director of North St. Louis County Habitat for Humanity, said the credit increased his affiliate’s capacity to build on the Iron Range and called for language that ensures geographic balance so rural communities receive allocations.
A private developer representative described a workforce apartment project that relied on the tax credit and urged alignment with workforce housing funds to sustain rural economic vitality. Committee members who spoke praised the program’s public‑private approach and agreed geographic balance should be a priority.
The committee voted to re‑refer the amended House File to the Taxes Committee. The referral was announced without a roll‑call vote recorded in the transcript.
The bill will next be considered in the House Taxes Committee, where lawmakers may take up the recommended amendments and consider fiscal and implementation details.
