Mid-Session Legislative Update
With the 2022 legislative session half over, here’s a brief update on housing legislation and ways that you can get involved.
Both the House and Senate Housing Committees have passed their Housing omnibus bills. Now these bills must be passed by the full House and Senate before going into conference committee, where the conferees will try to reach a compromise on a final bill. That will be a challenge, because the two bills are far apart in the amount of new spending they propose.
House Omnibus Housing Bill
Though it does not increase to the scale we need for Bring it Home, Minnesota, there is a lot to celebrate in the House omnibus bill, which includes $230 million in new spending this year and allocates $185 million to continue most of that funding in next year’s housing budget. Of particular importance to Beacon, the bill also includes $400 million in Housing Infrastructure Bonds.
Also of interest to Beacon is $10 million in new funding to Homework Starts with Home, a rental assistance program for students and families experiencing homelessness, and $15 million over the next three years for a new program to strengthen supportive housing.
We are deeply disappointed that the Bring it Home, Minnesota bill was not included in the omnibus bill, especially since the House DFL declared it a priority and messaged that it might be partially funded at $400 million. However, Bring it Home, Minnesota did get a hearing in the House committee and campaign leaders met with Speaker of the House Melissa Hortman. Important first steps!
Senate Omnibus Housing Bill
We are not nearly as enthusiastic about the Senate omnibus bill, which contains only $50 million in new spending for housing despite the state’s abundant resources this year. While the bill includes resources for new and existing programs that support homeownership, there is no provision whatsoever for Housing Infrastructure Bonds. (See below.)
The bill also prohibits Minnesota Housing from using any funds from any source on multifamily projects in cities that have adopted rent stabilization policies until the agency submits an exhaustive report on the impact of rent stabilization on housing markets. This provision is unlikely to pass in the final compromise bill, but, if enacted, it unfairly targets and punishes Beacon’s residents and other Twin Cities residents who deserve and depend on state housing support.
Finally, we are disappointed that the Bring it Home, Minnesota bill did not get a hearing in the Senate Housing Finance and Policy Committee and was excluded from the omnibus bill. We will continue to push for meetings on Bring it Home, Minnesota with Senate leaders.
Housing Infrastructure Bonds (HIBs)
As mentioned above, the Senate Housing Finance and Policy Committee did not include a provision for Housing Infrastructure Bonds in its omnibus bill. Committee Chair Senator Rich Draheim has said he does not believe they should pass any housing bonds this year. This is by far the most worrisome development this legislative session.
Housing bonds are the most effective investment the state makes in creating new homes, and the only source of public funding directed at providing homes for people at the lowest income levels. Beacon has received HIB funding for eight of our housing developments, including Bimosedaa, Vista 44, Emerson Village, 66 West, Prior Crossing, expansions at Lydia and Kimball Court, and a renovation at American House.
Historically, there has been strong bi-partisan support for housing bonds. Since it takes two to four years for new developments to be completed, passing a housing bond package every year has created a consistent rate of funding for organizations like Beacon to keep deeply affordable housing in regular production. A year without Housing Infrastructure Bonds will result in delays in the development cycle that could be catastrophic for those most in need of supportive housing now and in the future.
As the leading developer of deeply affordable supportive housing in the state, Beacon depends on the availability of Housing Infrastructure Bonds to create homes for people experiencing housing insecurity who need supportive services. No political agenda is more important than making sure every Minnesotan has a place to call home.
CONTACT YOUR LEGISLATORS TODAY AND URGE THEM TO FIGHT FOR THE INCLUSION OF HOUSING INFRASTRUCTURE BONDS IN THE FINAL BUDGET!
Bring it Home, Minnesota
Beacon and over 30 organizational partners have a BIG IDEA: let’s end homelessness in Minnesota by providing state rent support for those who qualify for federal assistance but don’t receive it. It sounds simple enough, but pushing this transformational legislation through will require herculean effort. Thank goodness we’re up to the task and have fabulous champions in the state legislature! Click here for a list of the 55 state legislators who have co-authored Bring it Home, Minnesota bills.
Beacon is hosting a Bring it Home, Minnesota rally on the south steps of the Minnesota Capitol at noon on Tuesday, April 19. This event will celebrate the growing Bring it Home, Minnesota movement to pass rent support legislation, thank the state legislators who are fighting for it, and show state leadership that we are serious about continuing this campaign until the bill is passed. We hope you’ll join us! To learn more and register click here.
