House Committee Advances Omnibus Housing Bill

April 11, 2022

The House omnibus housing bill includes significant resources for new and existing housing programs that support locally identified housing needs.

The House omnibus housing bill, which contains funding to bolster new and existing housing programs, was approved last week by the House Housing Finance and Policy Committee.

The bill will now go to the House Ways and Means Committee, the last stop before it can be considered by the full House.

Funding for next two fiscal years

The bill, HF 4376 (Rep. Alice Hausman, DFL-Falcon Heights) as amended by a delete-everything amendment, contains over $230 million in general fund spending in fiscal year (FY) 2022-2023 and $185 million in FY 2024-2025, as well as $400 million in Housing Infrastructure Bonds. The funds will help bolster new and existing programs that assist with the construction, acquisition, and rehabilitation of housing units across the housing spectrum.

During public testimony in last week’s hearing, the League provided testimony in support of the additional resources and policies that focus on the entire housing spectrum and strengthen the state-local partnership for addressing community housing needs across the state.

Funding provisions

Funding provisions of interest to cities would:

  • Authorize $400 million in Housing Infrastructure Bonds.
  • Provide $20 million in one-time funding for the Challenge Fund Grant Program and an additional $17.5 million added to the program’s base funding in FY 2024 and 2025. The Challenge Program continues to be one of Minnesota Housing’s most flexible programs and can be used for construction, acquisition, and rehabilitation of qualified housing that supports the local workforce.
  • Create a new $100 million Community Stabilization Program to assist with financing improvements and preserving naturally occurring affordable housing with $40 million added to the program’s base in FY 2024 and 2025.
  • Make a $1 million one-time appropriation for the Homeownership Education, Counseling and Training Program.
  • Appropriate $50 million in one-time funding available until June 30, 2025, for a First-Generation Homebuyers Down Payment Assistance Fund.
  • Provide $7 million in additional one-time funding for Local Housing Trust Fund State Matching.

Policy provisions

Policy provisions of interest to cities would:

  • Allow Housing Infrastructure Bonds to finance the costs of construction, acquisition, and rehabilitation of housing that is affordable to households with incomes at or below 50% of the area median income with preference for more deeply affordable units.
  • Require at least one unit or at least 5% of units to be accessible units if the project funded by Housing Infrastructure Bonds is funding a building containing more than four units.
  • Make tenant protection changes, including eviction expungement in certain cases, prohibition on certain fees assessed by landlords, termination of a lease upon infirmity, statewide heating standard in buildings where tenants do not control heat, and others.

League’s ongoing advocacy

League staff will continue to work with Rep. Hausman and members of the committee as the bill makes its way through conference committee. We will voice support for an increased state-local partnership in housing and robust state resources to support local efforts.

Read about the Senate omnibus housing bill

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