Bill
HF 5025
Counts may spend a capped share of housing aid on administering qualifying housing projects, with a set admin-cost limit and other affordability priorities unchanged.
Purpose
- This bill amends Minnesota statutes to authorize counties to spend a portion of housing aid payments on the administrative costs of administering qualifying housing aid projects. It adds a specific administrative-cost allowance to the list of eligible uses for housing aid funds.
Key Provisions
1) Expanded list of qualifying projects (Qualifying projects) under section 477A.35, subdivision 4
- Adds a new category: costs incurred by counties in administering qualifying projects (administrative costs), with a cap on administrative spending.
- Administrative costs may not exceed a specified percentage of aid received under the section.
- Administrative costs related to transferring aid to a local housing trust fund are ineligible under this clause, but costs to expend funds transferred to a local housing trust fund remain eligible as a qualifying project (subject to the percentage cap).
- Other existing qualifying categories remain, including:
- Emergency rental assistance to households below 80% of area median income (AMI).
- Financial support to nonprofit affordable housing providers.
- Development and financing of affordable housing (homeownership and rental) with income limits (homeownership up to 115% of state/AMI; rental up to 80% AMI, with a local workforce affordability requirement).
- Financing operations/management of financially distressed residential properties.
- Funding for supportive services or staff for supportive housing.
- Costs of operating emergency shelter facilities.
- Additional provisions on affordability criteria, gap financing, and accessibility requirements.
- In section 477A.35, subdivision 4, the bill includes new thresholds and requirements for 2027 and onwards (effective date language is included for this provision).
2) Administrative-cost cap
- Includes an explicit percentage cap (unspecified in the text provided, indicated by ....... percent) on the amount of aid that may be used for administrative costs at the county level.
- Clarifies treatment of funds transferred to a local housing trust fund: transfer-stage costs are ineligible for admin costs, but expending funds once transferred into the trust fund remains a qualifying project (subject to the cap).
3) Section 477A.36, subdivision 4 (Minnesota suburbs/rural areas)
- Mirrors the administrative-cost provision for counties within this section, applying the same cap to admin costs incurred administering qualifying projects.
- Applies to outside the metropolitan counties’ provisions and maintains other project categories and affordability priorities.
- Effective for aids payable in 2027 and thereafter.
Affordability Priorities and Other Provisions
- Priority for projects serving households: 80% of state/AMI for homeownership; 50% for rental housing (adjusted thresholds compared to the broader list).
- Continued emphasis on reducing disparities, housing cost burden, homelessness, habitat quality, accessibility, and energy/water efficiency.
- Accessibility requirements for new construction with more than four units remain in place (including accessible and sensory-accessible unit requirements).
Effective Date
- Administrative-cost provisions are effective for aids payable in 2027 and thereafter.
Impact and Scope
- If enacted, counties could allocate up to a capped share of housing aid to cover the costs of administering qualifying housing projects, which may streamline local implementation and oversight.
- The bill maintains existing housing affordability and accessibility objectives while enabling more local administrative flexibility.
- Stakeholders likely affected: county housing agencies, nonprofit housing providers, homeless/shelter partners, and recipients of rental and homebuyer assistance.
Compiled from official sources — confirm details with the bill’s official record.
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