Minnesota governor signs $1 billion housing investment bill into law: "A generational investment"
ST. PAUL, Minn. -- Minnesota Gov. Tim Walz on Monday signed a $1 billion housing omnibus bill into law that aims to build more homes in Greater Minnesota and reduce homeowner disparities.
"As one of the largest costs for families and most foundational human needs, our Administration is making a generational investment in housing," Walz said. "Housing is central to growing our workforce and ensuring Minnesotans' health, safety, and financial security. Whether it's building new housing infrastructure, providing rental assistance, or ensuring homeownership is an option for all Minnesotans, this bill will have a historic impact on the quality of life in Minnesota and move us towards becoming the best state to raise a family."
RELATED: MN Senate passes budget bill to fund metro tax hike to benefit affordable housing programs
The bill allocates $200 million for down payment assistance programs, including $150 million for first-generation down payment assistance. Another $200 million is allocated for housing infrastructure investments.
Other funding highlights:
$95 million for the Economic Development and Housing Challenge Program to support new workforce housing.
$40 million to support workforce housing and infrastructure in Greater Minnesota.
$45 million for homelessness prevention in addition to the $50 million that Governor Walz signed into law on March 31.
Creates permanent funding for housing needs across the state.
"Not all Minnesotans have the same options when it comes to housing, and this bill is one big step towards filling in those gaps," Lt. Gov. Peggy Flanagan said. "We can provide additional affordable housing options, make homeownership achievable for more Minnesotans, invest in new housing across the state, and so much more. We know housing security is the foundation of educational and professional growth, health, safety, and allowing kids and families to thrive in our state, and I look forward to seeing the impact this legislation will have on Minnesota."
State officials say the bill will also expand rental assistance.
The state is short more than 100,000 thousand affordable rental homes, according to an analysis by the National Low Income Housing Coalition, and more than 167,000 households here are extremely low income. Most of the people are cost-burdened, which means they spend more than 30% of their monthly income on housing.
The law includes a sales tax increase for Twin Cities metro residents. Republicans during the Senate floor debate criticized the sales tax hike at a time when the state has a $17 billion surplus, which they call a sign of "over taxation" in Minnesota.
