Housing

Housing Omnibus Budget Bill

The Housing Conference Committee met a handful of times to review the differences between the House and Senate proposals during session. During the last days of session, leaders awarded the conference committee with a General Fund target of $10 million and added $100 million in Housing Infrastructure Bonds during the special session. Previously, the Senate Republicans had a budget target of $0 for this budget area, while the House DFL target was $18.5 million. (HF 4)

Notable items in HF 4 include:

Eviction off-ramp and housing assistance

Legislation enacted would eliminate the Executive Orders related to the eviction moratorium and replace it with a gradually phaseout. The law is as follows:

Termination or nonrenewal of a lease is prohibited unless:

  • Request of the tenant or when the tenant seriously endangers the safety of others or significantly damaging property
  • Violations of 504B.171, Sub 1 (Not allowed on the premises: use or distribution of controlled substances, prostitution, prostitution-related activities, and unlawful use or possession of a firearm. Additionally, permitting stolen property to be stored in the premises)
  • Those who have outstanding rent but are ineligible for rental assistance through the COVID-19 emergency rental assistance 45 days after the date of enactment

Filing evictions is prohibited unless:

  • Request of the tenant or when the tenant seriously endangers the safety of others or significantly damaging property
  • Violations of 504B.171, Sub 1 (Not allowed on the premises: use or distribution of controlled substances, prostitution, prostitution-related activities, and unlawful use or possession of a firearm. Additionally, permitting stolen property to be stored in the premises)
  • 15 days after enactment for material violations of lease other than nonpayment of rent
  • 75 days after enactment for those with outstanding rent who are ineligible for rental assistance through a COVID-19 emergency rental assistance program
  • A park owner may terminate a residential agreement or file an eviction if the resident violates the law or is found to be an endangerment or being a substantial annoyance. These terms for violation of law or endangerment are found under 327C.09
  • A landlord may evict a tenant who is eligible for assistance through COVID-19 emergency rental assistance but refuses to apply, provide information to apply for assistance, or provide proof that the tenant applied for assistance from the program
  • Eviction mortarium protections expire 105 days after the enactment. However, those with pending rental assistance applications are protected from evictions until June 1, 2022

COVID-19 rental assistance notification

At least 15 days prior to filing an eviction action against a tenant based on nonpayment of rent, a landlord must provide a written notice to the tenant. Courts may exercise discretion in staying an eviction until proper notice is provided. This section expires 105 days after enactment but tenants with an open application are protected until June 1, 2022.

The notice must contain the following information:

  • State eviction moratorium has ended & tenant may be subject to an eviction action
  • Total amount of rent due
  • Tenant should visit renthelpmn.org or call 211 regarding financial assistance

Housing assistance/resources:

Housing infrastructure bonds – $100 million

Housing Infrastructure Bonds are divided into three areas: Single Family Homes ($18.333 million), manufactured home park acquisitions and infrastructure ($15 million), with the remaining portion being undedicated for a specific purpose ($66.667 million).

Shelter Task Force

A 24-member task force will review shelter policies and practices while engaging stakeholders to develop a report that will strengthen the shelter systems and the system’s ability to meet the needs of people experiencing homelessness.

Housing Challenge Program

An additional investment of $2.8 million ($28.65 million in the biennium) was provided for grants and loans to support economic development and redevelopment activities or job creation and preservation. The program finances lower income rental and homeownership opportunities. There are income limits for this program. A portion of this appropriation ($1.208 million per year) is reserved exclusively for housing projects for Native Americans for the first 11 months of each biennium.

Manufactured Home Park Infrastructure Grants

This grant program received an additional $1.75 million ($3.75 million in the biennium) this legislative session. The program provides grants for the acquisition of and improvements in manufactured home parks. Additionally, the money supports infrastructure, including storm shelters and community facilities.

Workforce Homeownership Program

$3.25 million in grants are made available program to cities, tribal governments, nonprofits, cooperatives, and community land trusts. The money can be used for development costs, rehabilitation, land development, and residential housing. This program limits affordability up to 115% of AMI (area median income).

Homeownership Assistance Fund

An additional million dollars ($2.77 million in the biennium) in resources will be used to assists people of low or moderate incomes in the purchase of affordable residential housing. The money will be used to provide homebuyer education, mortgage programs, down payment assistance, and closing costs.

2021 Housing legislation that did not pass

Limiting local control

Several bills heard in the Senate Housing Committee would have severely limited local control had they passed. This includes prohibiting local units of government from requiring developers to use vegetation or other aesthetic requirements as part of a development. Additionally, they would cap the fees cities could charge to developers for inspecting their projects. They have even tried to prohibit citizens from petitioning their local units of government to allow for rent controls.

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