Minnesota House Approves Housing Policy & Supplemental Budget Legislation

St. Paul, MN - Today, the Minnesota House of Representatives passed House File 5242, which includes the House’s policy and supplemental budget legislation from the Housing Finance and Policy Committee. The bill also contains significant Transportation and Labor provisions. The bill passed on a vote of 69-60. 

“This bill is additive to our great work last session, where we invested over $1 billion in preventing homelessness and providing a pathway to an affordable home, but one good year of legislation doesn’t erase Minnesota’s housing crisis,” said Rep. Michael Howard (DFL - Richfield), Chair of the Housing Committee in the Minnesota House. “This year, we focused on housing stability, making the largest impact for the Minnesotans who are most in need. We’re providing emergency rental assistance, keeping senior housing affordable, and supporting $50 million in Housing Infrastructure Bonds to build more homes.”

Last session, the DFLers passed the most significant commitment to addressing Minnesota’s housing crisis in state history, creating housing stability for Minnesota families on the brink of homelessness through new state-based housing vouchers, spurring the production of new homes across the state, and delivering pathways to homeownership for thousands of Minnesotans. The policies and investments in this year’s Housing legislation build on that work. 

This year, House DFLers are investing $8.8 million in Family Homelessness Prevention and Assistance, a fast, efficient option to get resources like rental assistance out to those most in need. Applicants can receive funding to connect people to emergency resources, conduct street outreach to homeless individuals and families, prevent evictions by providing rental assistance and tenant/landlord mediation, and rapid rehousing to quickly get people back into permanent housing. 

Building off the law the Legislature passed last year requiring that eviction records be expunged if the case is dismissed, this year’s bill includes funding for Minnesota’s courts, along with clarifying language that the law applies to all eviction cases, including those filed prior to the new law.

"Today, Minnesota took a significant step forward in ensuring housing stability and opportunity for all," said Rep. Esther Agbaje (DFL - Minneapolis), Vice Chair of the Housing Committee. "This new legislation recognizes the importance of second chances and removes a barrier that has kept many Minnesotans from finding safe and decent housing. By delinking eviction records from tenancy decisions, we open doors to opportunity and empower our residents to build a brighter future."

The legislation also limits rent increases on low-income senior housing and reins in discriminatory practices in homeowner associations. It also creates several requirements for owners and developers that seek financial assistance from the Minnesota Housing Finance Agency to ensure that wage theft is not a factor in homes being built with state funding. 

The bill also establishes a recapitalization and preservation grant program, financing the physical and financial needs of a distressed building with Housing Infrastructure Bonds. Currently, Housing Infrastructure Bonds can only be used for construction and rehabilitation. The bill reallocates $40 million in Housing Infrastructure Bonds from 2024 and $10 million from the 2024 Community Stabilization program appropriation to a new preservation fund. 

A research summary of House File 5242 can be found here. A spreadsheet of the bill’s Housing investments can be found here. Video of today’s floor debate can be found on the House Public Information YouTube channel. 

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