Minnesota 2023-2024 Regular Session

Minnesota Senate Bill SF4875

Introduced
3/13/24  

Caption

Local affordable housing aid conditional maintenance of effort requirement provision

Impact

If enacted, this bill will amend Minnesota Statutes to establish clearer regulations regarding the distribution of affordable housing aid. Specifically, it would enhance accountability by requiring annual reporting on the expenditures made by cities and counties receiving such funds. The goal of these regulations is to ensure that local assistance directly translates into tangible housing opportunities for residents, especially those classified as cost-burdened, which are households that spend a significant portion of their income on housing.

Summary

SF4875 is a legislative proposal aimed at revising the conditions under which local governments receive state aid for affordable housing initiatives. The bill stipulates that, to qualify for aid, local governments must adhere to a 'maintenance of effort' condition, ensuring they maintain their local spending on housing at levels not less than the average of the previously three fiscal years. This move is intended to reinforce local commitment to affordable housing efforts, while also encouraging robust public investment.

Contention

The introduction of this bill may lead to a complex discussion among stakeholders and lawmakers, particularly related to the potential impacts on local governments. Some proponents argue that the maintenance of effort requirement could push cities to prioritize housing issues, ensuring that funds are directed towards projects that alleviate homelessness and housing instability. Conversely, critics may express concerns that such mandates could strain local budgets and limit flexibility in responding to community-specific needs, especially in cases where local resources may be currently insufficient to meet the increasing demand for affordable housing.

Companion Bills

MN HF4555

Similar To Maintenance of effort condition for receipt of local affordable housing aid imposed.

Previously Filed As

MN HF4555

Maintenance of effort condition for receipt of local affordable housing aid imposed.

MN HF5070

Regional transportation sales and use tax repealed, metropolitan region sales and use tax repealed, local affordable housing aid repealed, retail delivery fee repealed, and use of amounts in repealed accounts provided.

MN HF1419

Local government aid provisions modified, local affordable housing aid program established, and money appropriated.

MN SF1752

Local affordable housing aid program establishment and appropriation

MN SF5145

Various local taxes and fees repealer and technical changes

MN HF2757

Taxation; standard deduction calculation and statewide local housing aid definitions modified, and Beltrami County local sales and use tax authorization amended.

MN HF4194

Housing; prior appropriations modified, new programs established and existing programs modified, housing infrastructure bond eligible uses expanded, housing infrastructure bond issuance authorized, working group and task force established, reports required, and money appropriated.

MN HF2335

Housing finance and policy bill.

MN HF4735

Housing provisions modified.

MN SF4804

Housing provisions modifications

Similar Bills

MN SF2405

Taxes corrections bill

MN HF2757

Taxation; standard deduction calculation and statewide local housing aid definitions modified, and Beltrami County local sales and use tax authorization amended.

MN HF4555

Maintenance of effort condition for receipt of local affordable housing aid imposed.

MN SF5145

Various local taxes and fees repealer and technical changes

MN HF5070

Regional transportation sales and use tax repealed, metropolitan region sales and use tax repealed, local affordable housing aid repealed, retail delivery fee repealed, and use of amounts in repealed accounts provided.

MN HF1419

Local government aid provisions modified, local affordable housing aid program established, and money appropriated.

MN SF1752

Local affordable housing aid program establishment and appropriation

MN HF2335

Housing finance and policy bill.