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CBS News
30-04-2025
- Business
- CBS News
Bipartisan affordable housing package could be on cutting room floor this session, key lawmaker says
The tied Minnesota House on Tuesday approved its housing budget proposal on a bipartisan vote. But it didn't include a package some Republicans and Democrats had high hopes for to boost affordable housing development at a time when the state is short 100,000 homes — and its future this session isn't bright. That "Yes to Homes" agenda, which includes legislation to cut red tape to increase starter homes like townhomes and duplexes among other ideas, likely won't clear the finish line this year, said Rep. Michael Howard, DFL-Richfield, the co-chair of the chamber's housing committee. There are continued concerns from local governments about implementation, he added. "We're still working to see if there's a path this year to move the needle, but the structural change, the big reforms needed to unlock more housing, we are going to have to do more work over the interim and come back next session," Howard told reporters Tuesday ahead of the vote. But the bipartisan House deal does include a provision designed to incentivize cities to approve, on their own accord, the approaches in that bipartisan package: allowing more multi-family housing to be built in commercial districts; permitting more duplexes and townhomes in areas zoned for single-family homes; and eliminating "aesthetic mandates" that can drive up prices. Local governments applying for grants at Minnesota Housing Finance Agency receive points based on a number of factors to determine if their project receives the funding through the agency. This bill would boost the score for cities that adopt those housing policies. "We've made more progress this year on this issue than last year," he said. The House proposal also includes $30 million for the Family Homelessness Prevention and Assistance Program, which can provide emergency rental or mortgage assistance for families on the brink of homelessness and other services to keep people in their homes. Grants for development of housing infrastructure in Greater Minnesota receive $20 million and the legislation expands eligibility for first-generation home buyers' down payment assistance, among other provisions. "Everyone in this chamber agrees that Minnesota is the best place to live, grow up, raise a family, all of those things, but people can't do that if they don't have homes, and that's why we need to continue to drive the message and work on policy that can get us there," said Rep. Spencer Igo, R-Wabana Township, moments before the proposal passed off the floor. The Senate has its own version of a housing spending plan and both chambers will come together in the next few weeks to sort out differences on this issue and others, as lawmakers look at cuts to rein in a potential deficit in the future. The Legislature must adjourn on May 19 and complete its work before then or the governor will have to call a special session.
Yahoo
10-04-2025
- Business
- Yahoo
House housing budget includes incentives for zoning reforms
The Minnesota Capitol. Photo by Max Nesterak/Minnesota Reformer. A budget bill passed by the state House housing committee Wednesday would prioritize funding for communities whose rules allow for multifamily housing construction, and don't require certain size, parking or aesthetic requirements for new developments. The bill (HF2445, as amended) instructs the Minnesota Housing Finance Agency to 'prioritize applications for projects located in jurisdictions that have policies conducive to developing residential properties' in its competitive grant and loan programs. The agency would prioritize cities and counties that: Allow multifamily housing in at least 75% of the area zoned for commercial use. Allow duplexes, townhomes or detached apartments in at least 75% of the area zoned for single-family housing, and allowing developers to get permits for those buildings using the same process and standards as single-family homes. Do not require more than one parking stall per unit of housing. Do not require lots to be bigger than one-eighth of an acre. Do not require certain aesthetics, materials or garage sizes. 'This is providing a carrot — not a mandate, but a carrot — to cities to update their own policies in a way that will make it easier to build more homes,' said Rep. Michael Howard, DFL-Richfield, who is co-chair of the House Housing Finance and Policy Committee. The policies prioritized in the budget bill are similar to those backed by housing leaders in both parties, plus religious groups, labor unions and housing developers. Those policy bills passed in both housing committees, but have not yet received hearings in the state and local government committees, where similar legislation died last year after intense opposition from city leaders. Big-picture budget negotiations between the DFL-led Senate and tied House are still ongoing, but both chambers indicated they would like to give the state housing agency a small funding boost, while looking for large cuts elsewhere. The budget bill passed by the housing committee would allocate: $500,000 in one-time funding for a statewide hotline to educate and advise renters. $150,000 to establish a new task force on accessible housing. $20 million in one-time funding — more than double the funding in the current budget — for grants to greater Minnesota cities for the cost of extending sewer, water, streets and other infrastructure. A $30 million one-time boost for the Family Homeless Prevention and Assistance Program, in addition to the program's $10.7 million in ongoing funding. Ongoing funding for existing programs that finance the development of workforce housing, affordable rental housing, manufactured home infrastructure and housing rehabilitation; and programs that provide rental assistance, homeowner education and support to homebuyers.
