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SF1801 (Legislative Session 94 (2025-2026))

State rental assistance program payment provisions modifications

AI Generated Summary

This bill (S.F. No. 1801) proposes modifications to the payment provisions of Minnesota's state rental assistance program. It amends Minnesota Statutes 2024, section 462A.2095, to update definitions, funding mechanisms, and eligibility criteria.

Key provisions of the bill:

  1. State Rent Assistance Account: The bill establishes a state rent assistance account within the housing development fund, with funds appropriated for grants to program administrators. The Commissioner of Revenue will distribute funds directly to program administrators in metropolitan counties.

  2. Eligibility Criteria:

    • Eligible households must have an annual income of up to 50% of the area's median income and must be paying more than 30% of their income on rent.
    • Households receiving federal Section 8 assistance are excluded.
    • Eligibility must be recertified annually.

  3. Program Administrators:

    • Local housing authorities, tribal governments, or other designated organizations can serve as program administrators.
    • The Commissioner of Revenue will directly fund public housing authorities administering Section 8 assistance, while tribal entities will receive funding through a state agency.

  4. Grant Distribution and Prioritization:

    • Rental assistance may be given as tenant-based or project-based aid, with funds distributed statewide in proportion to the number of eligible households in each county.
    • Priority will be given to households with children under 18 and incomes at or below 30% of area median income. Additional priority groups may be established based on local needs.

  5. Amount of Rental Assistance:

    • Assistance limits will be based on the difference between 30% of a household’s income and the rent amount (including utilities).
    • Assistance cannot exceed the gap between 30% of a tenant’s gross income and 120% of local payment standards unless authorized.

The bill seeks to streamline rental assistance distribution, ensure statewide access, and prioritize support for the most vulnerable households.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 23, 2025HouseFloorActionIntroduction and first reading
February 23, 2025SenateFloorActionIntroduction and first reading
February 23, 2025HouseFloorActionReferred toHousing and Homelessness Prevention
February 23, 2025SenateFloorActionReferred toHousing and Homelessness Prevention

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarification on direct distribution of funds to program administrators."
      ],
      "removed": [
        "Previous wording that could limit the streamlined disbursement of funds."
      ],
      "summary": "This bill modifies payment provisions of the state rental assistance program under section 462A.2095, subdivision 1.",
      "modified": [
        "Changed rules on how money in the account is appropriated and distributed."
      ]
    },
    "citation": "462A.2095",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        "Clarification of eligible household income criteria."
      ],
      "removed": [
        "Generalized definitions of eligible households."
      ],
      "summary": "This bill modifies definitions related to the state rental assistance program in section 462A.2095, subdivision 2.",
      "modified": [
        "Details on recertification and eligibility criteria for rental assistance."
      ]
    },
    "citation": "462A.2095",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        "Provisions for how grants should be provided for eligible households."
      ],
      "removed": [
        "Previous grant distribution methodology."
      ],
      "summary": "This bill modifies grant funding procedures in the state rental assistance program under section 462A.2095, subdivision 3.",
      "modified": [
        "Changed funding proportion requirements according to community surveys."
      ]
    },
    "citation": "462A.2095",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        "Further details on voucher amounts and calculations for rent assistance."
      ],
      "removed": [
        "Caps on assistance that do not consider varying utility allowances."
      ],
      "summary": "This bill modifies the amount of rent assistance provided under section 462A.2095, subdivision 4.",
      "modified": [
        "Adjustment to the previous limits on the rent assistance calculations."
      ]
    },
    "citation": "462A.2095",
    "subdivision": "subdivision 4"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to definition of metropolitan counties under section 473.121, subdivision 4.",
      "modified": [
        "Clarifies which metropolitan counties are included in the new funding provisions."
      ]
    },
    "citation": "473.121",
    "subdivision": "subdivision 4"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to federal housing assistance under Section 8 of the United States Housing Act of 1937.",
      "modified": [
        "Adds specifics to exclusions for households already receiving Section 8 benefits."
      ]
    },
    "citation": "8",
    "subdivision": ""
  }
]

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