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HF 5014

Distribution of local affordable housing aid modified.

2025-2026 Regular Session Introduced by Mike Howard

The bill reallocates metropolitan sales tax proceeds to three housing accounts, emphasizing the metropolitan county aid account while keeping fixed shares for state rent assistance

Introduction and first reading, referred to Taxes
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Bill Summary · HF 5014

Summary of HF 5014 (2025-2026) — Distribution of Local Affordable Housing Aid Modified

Purpose and intent

HF 5014 proposes changes to how proceeds from the metropolitan sales tax are distributed to housing-related programs in the Minneapolis–St. Paul metropolitan area. The bill reconfigures the shares allotted to the state rent assistance program, the metropolitan city aid account, and the metropolitan county aid account within the housing assistance fund. The overall aim is to modify the allocation among local housing aid components to support affordable housing initiatives.

Key provisions

  1. Revised distribution of metropolitan sales tax proceeds (Section 1)
    • Modifies Minnesota Statutes 2024, section 297A.9925, subdivision 4.
    • Allocation splits (as amended):
      • 25% of metropolitan sales tax proceeds to the state rent assistance account under section 462A.2095.
      • 25% of proceeds to the metropolitan city aid account in the housing assistance fund under section 477A.37.
      • Remaining share to the metropolitan county aid account: the text indicates a correction in the bill to move from 50% to 75% for the metropolitan county aid account (the original reads “50 (2) 75 percent,” which appears to intend 75% after amendment). This is the portion allocated to the metropolitan county aid account under section 477A.37.
  • In short, the bill changes the composition of the total distribution, redistributing a portion of proceeds toward metropolitan city and county housing aid accounts, with a notable emphasis on the county aid account (pending confirmation of the exact numeric language due to the editorial notation in the text).
  1. Metropolitan city aid account procedures and funding (Section 2)
    • Amends Minnesota Statutes 2024, section 477A.37, subdivision 3.
    • Establishes the metropolitan city aid account within the housing assistance fund.
    • Specifies that the account consists of:
      • Money provided under section 297A.9925 (the updated distribution rule), and
      • Any other money donated, allotted, transferred, or otherwise provided to the account.
    • Annual appropriation: Money in the metropolitan city aid account is appropriated to the commissioner of revenue for payments to metropolitan cities as provided under section 477A.35.

Who is affected

  • Metropolitan cities and counties in the Twin Cities metro area receive altered funding levels for housing assistance programs through the housing assistance fund.
  • State Rent Assistance program (462A.2095) would receive a fixed 25% share of metropolitan sales tax proceeds.
  • Metropolitan city aid accounts and metropolitan county aid accounts within the housing assistance fund would receive adjusted allocations, with the statute clarifying the flow of funds to these accounts and their distribution to cities as per 477A.35.

Procedural and timeline aspects

  • Introduction and status: HF 5014 was introduced and referred to the House Taxes Committee on 2026-04-16.
  • Effective date: The bill text does not specify an effective date; typical implementation would occur upon enactment and publication of the amended statutes.
  • Next steps: If advanced, the bill would move through committee consideration, potential amendments, floor votes, and, if enacted, implementation according to the revised statutory language.

Notes for readers

  • The key change is a reallocation of metropolitan sales tax proceeds among three housing-related accounts, emphasizing the county aid component while maintaining dedicated shares for state rent assistance and city aid.
  • The exact percentages for the county vs. city allocations should be clarified in the final enacted text, as the draft includes a formatting note (“50 (2) 75 percent”) that appears to indicate a correction to 75 percent for the county share. Verification of the final enacted language is advised.

Compiled from official sources — confirm details with the bill’s official record.

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