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Senate committee advances bill to let Greater Minnesota infrastructure grants support workforce housing
Summary
The Senate Housing Committee advanced a bill to expand the Greater Minnesota Housing Infrastructure Grant Program so its capital awards can support workforce housing as well as income-restricted projects. Local officials said the change would help small cities overcome high per-lot infrastructure costs.
Senator Hauschild introduced Senate File 4571 to allow Greater Minnesota Housing Infrastructure Grant funds to be used for workforce housing in addition to income‑restricted affordable homes.
Supporters told the committee the change would let small and rural jurisdictions stretch scarce public and private dollars and spur housing production. Sarah Brown, city administrator for Foley, said a local study identified a substantial housing shortfall and that infrastructure alone for a proposed 33‑lot subdivision could run about $90,000 per lot, making development infeasible without public capital. "Those lots would not be possible without the contribution of city, county and federal funds as well as this critical Minnesota Housing infrastructure funding," she said.
Chad Adams of a regional housing partnership described strong demand across Greater Minnesota and urged more capital and program flexibility to leverage private investment. Jeff Brand, director of the Cook County Redevelopment Authority, described the high transportation and site costs in northern Minnesota — including rock blasting and wetland constraints — and said the bill would broaden access to funding to build housing for local workers.
Committee members asked Minnesota Housing staff how the agency had defined "workforce housing" in the program. Agency staff said past guidance allowed projects priced up to 150% of locally defined workforce rental limits and that market‑rate units without income restrictions had been eligible in previous awards. Senators pressed on scoring criteria, responsible land use and differing lot‑size and infrastructure challenges across jurisdictions.
After questions and discussion, the committee voted by voice to recommend SF 4571 be passed and referred it to the Committee on Capital Investment for further consideration.
The committee’s action advances a policy change supporters say will give Greater Minnesota communities more tools to address acute local housing shortages; the bill will receive further review in the capital investments committee.
