Maximum grant or loan amount modification for workforce housing projects
Impact
The proposed modifications to Minnesota Statutes 2022, specifically section 462A.39, subdivision 5, would permit grants or deferred loans to cover up to 50 percent of the development project costs, which is an increase from the previous limit of 25 percent. This increase is expected to strengthen partnerships between local governments, businesses, and nonprofits, as the bill requires that any awarded funds be matched locally. The appropriation of $20 million from the general fund for fiscal year 2024 further illustrates the state's commitment to enhancing workforce housing opportunities.
Summary
SF989 is a legislative proposal aimed at addressing housing development in Minnesota by modifying the maximum amount available for grants or loans under the workforce housing projects program. The bill seeks to amend existing regulations regarding financial support for housing development, allowing for increased funding possibilities to encourage the construction and improvement of rental housing aimed at supporting workforce members. This change is particularly relevant as it aligns with the growing need for affordable housing options in the state.
Contention
While the bill appears beneficial for expanding housing opportunities, discussions surrounding SF989 may highlight potential points of contention. Critics may argue that increasing the availability of grants and loans could lead to dependence on state funding, or that it might not adequately address broader structural issues regarding housing supply and demand. Supporters, however, contend that the bill represents a necessary investment in housing infrastructure that will ultimately benefit the workforce and enhance economic viability in Minnesota.
Exceptions to income limits of the Minnesota housing tax credit contribution account grant and loan program for certain workforce housing projects granted, and matching requirements of the workforce housing development program modified.
Exceptions permission to income limits of the Minnesota housing tax credit contribution account grant and loan program for certain workforce housing projects
Grant programs created to fund municipal housing projects and initiatives, excise tax imposed, housing and redevelopment authority maximum levy amount increased, housing infrastructure bonds authorized to finance affordable housing to low-income households, workforce housing added as eligible project for housing and redevelopment authorities, bonds issued, and money appropriated.
Modifying the workforce and affordable homeownership development program; creating the workforce and affordable homeownership account in the housing development fund and appropriations
Workforce and affordable homeownership development program modified, workforce and affordable homeownership account created in the housing development fund, and money appropriated.