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Minnesota House approves legislation to make housing more affordable

The proposed bill has four main points, including building affordable homes, reducing housing costs, providing pathways to stable housing and tenant protections.

ST PAUL, Minn. — As the May deadline to pass a Minnesota state budget gets closer, more groups are trying to grab a piece of the projected $9 billion surplus. With legislation approved late on Monday night, House lawmakers said on record that they feel some of that money should go toward making housing more affordable. 

The proposed bill has four main goals:

1. Building affordable homes. “Affordable housing is a fundamental need, and our Housing budget makes wide-ranging investments throughout Minnesota,” said Rep. Alice Hausman (DFL-Falcon Heights), chair of Minnesota House Housing Finance & Policy. “We have crafted transformational legislation to address the most persistent housing costs and help those in perilous housing situations achieve a safe place to live. This legislation will have impacts now and in the future.”

2. Reducing costs for renters and creating more homeowners. More rental assistance and down payment assistance would be available to more people. 

3. Preserve the affordable housing that already exists. “Minnesota prevented an eviction crisis during the worst days of a global pandemic. Now, legislators have an opportunity to build on that achievement by reducing the cost of housing for renters and homeowners,” said House Majority Leader Ryan Winkler. “Minnesotans work hard every day, but when hard work alone isn’t enough to pay the mortgage or rent, legislators have an obligation to step up and help, especially when there’s a historic budget surplus.”

4. Create services providing pathways to more stable housing. "Now is the time to capitalize on our historic surplus and make meaningful investments in housing for the tens of thousands of Minnesotans struggling to find or keep a stable place to call home. Whether it’s the renters who are falling behind or the Minnesotans seeking to purchase their first home, our bill is looking out for you," said Rep. Michael Howard (DFL-Richfield), vice-chair of the Housing Finance & Policy Committee. "Minnesota faced a housing crisis well before the pandemic, and with many facing worsened conditions, we can't afford to let an opportunity to invest in housing pass us by."

RELATED: Gov. Walz urges compromise in State of the State Address

The legislation approved by the House includes $230 million in new spending and $185 in ongoing investments. $50 million for a pilot project with down payment assistance for first-generation homebuyers, and $2 million to establish the "Dustin Luke Shields Act," a lead-safe homes grant program. 

“Access to safe and secure housing that people can afford is necessary for the health and wellbeing of families and communities," said Speaker Melissa Hortman. "It's critical that we take strong steps to reduce costs for families and create more housing options to improve economic security and opportunity. Throughout our budget, House DFLers are putting forward proposals to ensure all Minnesotans can have a place to call home.”

If the Senate approves their version of the bill, the two will be merged in conference committee with the final draft heading to the governor's desk for his signature. 

RELATED: As Twin Cities median homes top $350K, more renters are giving up on owning

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