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read the Finance and Commerce article and the Budget Bill Summary from Minnesota

read the Finance and Commerce article and the Budget Bill Summary from Minnesota

read the Finance and Commerce article and the Budget Bill Summary from Minnesota Housing. In 2023, the state of Minnesota passed a $1.065 billion housing omnibus bill, the largest single investment in housing in state history.
From your experience in the industry, identify a homeownership program you think will improve the lives of Minnesotans.
Make your “pitch” in approximately 100 words and enter it with your name in Chat at the start of this class session.
J.D. Duggan, “What will be the impact of Minnesota’s $1B
housing bill?” Finance and Commerce, May 10, 2023
The Legislature’s housing omnibus bill comes with the state’s first-ever sales
tax dedicated to affordable housing, along with more than $1 billion in
spending.
HF2335 includes $792 million in spending in fiscal year 2024 — much of
which includes one-time allocations — and about $274 million in fiscal year
2025 that will go toward things like producing more housing, homeownership
assistance and preservation of naturally occurring affordable housing. The
omnibus bill was approved by both the House and Senate this week and is
likely to head to Gov. Tim Walz’s desk any day.
It’s a “historic” bill, said Daniel Lightfoot, an intergovernmental relations
representative for League of Minnesota Cities with a focus on housing.
Recent legislative session targets for housing haven’t surpassed $15 million.
The quarter-cent tax hike only applies to the seven-county metro, with 25%
funding a new state-based program for low-income people in the metro to
obtain rent vouchers and 75% funding housing programs in the metro. It could
raise an estimated $300 million in the first two years.
The bill also earmarks $121 million over the biennium toward the state’s
Economic Development and Housing Challenge Program. The program serves
rental households with incomes at or below 80% of the area median income
and supports economic development activities, redevelopment and job
creation/preservation.
Lightfoot said it’s “really popular” for local units of government and
development partners. “It creates funding pots for the construction,
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acquisition of housing that can support a local workforce, which is of course,
extremely important.”
The bill also includes $39.5 million over the next year for the Workforce
Housing Development program, which addresses housing in Greater
Minnesota. Minnesota Housing Partnership and partners found that could
help finance an additional nearly 600 units and create at least 700 jobs.
The bill includes $90 million for the Naturally Occurring Affordable Housing
fund to rehabilitate existing NOAH homes, which MHP found could impact
nearly 2,000 units and serve around 5,000 people.
Other provisions include $150 million in downpayment assistance that could
help up to 4,000 lower-income homebuyers and $50 million for emergency
rental assistance that will expand on $50 million passed earlier in session.
The state’s nonprofit affordable housing developers, such as Catholic
Charities and CommonBond Communities, will receive $50 million, short of
the $120 million requested to prevent those organizations from potential
closures.
There will be $200 million in housing infrastructure cash, rather than bonds,
which could help leverage a 4% federal tax credit and could more easily be
disbursed.
Minnesota Housing Partnership has been at the frontlines of lobbying, leading
a charge last session for $2 billion in funding. “We’re very excited about the
billion-dollar investment,” said MHP’s Director of Policy Libby Murphy.
“It is going to transform the lives of individuals and families who most directly
benefit from the investments … it is also going to transform the communities
where these investments are made,” Murphy said. “The impact is going to be
so, so big. It’s sort of unquantifiable in some ways.”
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Lightfoot underscored that it’s the most comprehensive housing bill to ever
come out of the legislature and said it could be the water mark for future
housing bills.
“I think this is a signal that this legislature is really committed to the provision
of resources for housing and really going big on this,” he said

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