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Lawmakers consider $200M in Housing Infrastructure Bonds to move ready projects forward
Summary
Author and affordable housing developers urged the committee to authorize $200 million in Housing Infrastructure Bonds to close gap funding for ready-to-build affordable housing projects, noting long lead times and rising operating costs threaten projects if supply stalls.
Representative Howard presented House File 38 06 to authorize $200 million in Housing Infrastructure Bonds (HIBs), describing HIBs as a proven state tool that leverages public and private dollars to create affordable rental and homeownership opportunities statewide.
Kelly Law of the Minnesota Consortium of Community Developers said nonprofit developers rely on HIBs to fill final financing gaps and deliver projects that serve seniors, families, workforce housing and people exiting homelessness. Testimony stressed long project timelines — typically six to eight years from idea to occupancy — and new pressures such as insurance and operating-cost increases that threaten project viability if capital gaps are not filled.
Staff and committee discussion clarified that housing infrastructure bonds count against certain debt management guidelines (guideline #1 and #2) and are managed within a housing target rather than the Capital Investment Committee general fund target; projected debt-service timing was discussed, with initial debt service for a governor-requested $50 million assumed to begin in fiscal 2029. No final action was taken at the hearing.
