2026 Legislative Session Summary

In total, the housing budget bill provides an additional $163M in additional housing investments for the following programs:

• $100 million in Housing Infrastructure Bonds to produce or preserve more housing.
• $40 million for Family Homeless Prevention and Assistance (FHPAP) to address housing instability, including rent arrears, intended to be deployed by December 31, 2026.
• $14.275 million for Workforce Affordable Housing Development to produce new units of market-rate housing in Greater Minnesota. 
• $4 million for Supportive Housing operating support for providers whose contracts from the US Department of Housing and Urban Development have or will not be renewed.
• $4 million for Manufactured Home Park Redevelopment, to make updates and improvements in the shared infrastructure of manufactured home communities.
• $425,000 for a tenant education and support hotline to provide free legal advice to renters.
• $150,000 for Homebuyer Education, Counseling, and Training (HECAT) to help homebuyers prepare for homeownership, and homeowners avoid foreclosure.
• $150,000 for a 3-county Minnesota Nice HomeShare pilot program that will match seniors with extra capacity in their homes with potential renters/roommates. 

The new investments did not require additional general fund appropriations. Instead, they were funded through the cancellation and redirection of $40 million in unused appropriations from the Tyler Settlement, which pertains to individuals who lost homes due to tax foreclosure, as well as the redirection of $25 million in accumulated interest earnings from state-appropriated programs.

The Legislature agreed on capital spending that includes $17.5 million in State General Obligation Bonds for Publicly Owned Housing Program (POHP), to make repairs and updates in housing that is owned by local governments. These funds will be equally divided between Greater Minnesota and the metro area. 

• Minnesota Housing is hiring people with lived experience of housing instability to participate in reviewing applications for funding. We secured an exemption so that their compensation for this work will not count against state benefit eligibility.
• There is now a formula to clarify when agency interest earnings from state appropriations are redistributed to programs.
• The Legislature clarified under what circumstances the agency can deduct administrative expenses from state appropriations to programs.
• Minnesota Housing board meetings have previously been open for the public to listen to by phone. Beginning in August, they will be livestreamed and archived online.
• The bill includes clarifying language that protects investments for housing from being used by the Legislature for other purposes