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Senate Committee Advances Statewide and Local Affordable Housing Aid Policy Changes
The bill includes League-supported changes to expand eligible uses and extend timelines for city housing funds.
The Senate Housing and Homelessness Prevention Committee on March 17 advanced a bill that would make adjustments to the Statewide Affordable Housing Aid (SAHA) and Local Affordable Housing Aid (LAHA) programs, which provide direct funding to cities to support local housing efforts.
SF 4394, sponsored by Sen. Lindsey Port (DFL-Burnsville), was amended in committee to include several policy changes supported by the League. The updates would:
- Expand eligible uses of LAHA and SAHA funds to include emergency shelter construction, operations, and related services.
- Extend the deadline for local governments to spend fund by two years, giving cities more time to assemble financing for complex housing projects.
The League submitted written testimony in support of the adopted A3 amendment, which added the LAHA and SAHA provisions.
- View the A3 amendment to SF 4392 (pdf).
- View the League’s submitted testimony in support of the A3 amendment to SF 4392 (pdf).
SF 4394, along with its House companion HF 4207, sponsored by Rep. Michael Howard (DFL-Richfield), serve as the Minnesota Housing Finance Agency’s policy bill. The legislation also includes changes to better align the State Housing Tax Credit with the needs of Greater Minnesota. However, HF 4207 has not yet been amended to include the LAHA and SAHA changes.
SF 4394 was approved, as amended, by the committee and awaits action by the Senate Taxes Committee. HF 4207 was laid over March 18 for possible inclusion in the House housing omnibus bill.