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SF 5060

Minnesota Housing Finance Agency supplemental budget adjustments

2025-2026 Regular Session Introduced by Liz Boldon and 1 co-sponsor

The bill provides $167 million in 2027 across three MHFA programs to reduce homelessness, expand homeownership equity, and fill supportive housing gaps from HUD funding changes.

Referred to Housing and Homelessness Prevention
#appropriations #housingandhousingfinanceagency
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Bill Summary · SF 5060

Summary of SF 5060 (2025-2026) — Minnesota Housing Finance Agency Supplemental Budget Adjustments

Purpose

SF 5060 proposes supplemental budget adjustments for the Minnesota Housing Finance Agency (MHFA). The bill adds new appropriations for specific housing programs, directs how the funds are to be used, and in some cases modifies standard procurement rules to address emergent or targeted housing needs. The overarching goal is to bolster homelessness prevention, homeownership assistance, and supportive housing efforts, including targeted adjustments to respond to recent funding gaps and program needs.

Key Provisions and Changes

  • Overall Funding

    • The bill establishes a total new appropriation line for MHFA equal to $0 for the first year and $100,000,000 for the second year, with allocations detailed by program.

  • Family Homelessness Prevention and Assistance Program (Sec. 2.2)

    • New appropriation: $0 in 2026 and $33,000,000 in 2027.
    • Purpose: For the family homelessness prevention and assistance program under Minnesota Statutes, § 462A.204.
    • Flexibilities:
    • May be used for program costs necessary to reduce homelessness risk and improve effectiveness.
    • When new grantees partner with current or former grantees in a geographic area, the new grantee can work with either an advisory committee or a local continuum of care, and is not required to meet all statutory administrative requirements.
    • The agency may award grants to existing program grantees notwithstanding standard procurement requirements.
    • Long-term baseline: The program’s base funding for 2028 and beyond is $10,719,000.

  • Home Ownership Assistance Fund (Sec. 2.3)

    • New appropriation: $0 in 2026 and $34,000,000 in 2027.
    • Purpose: For the home ownership assistance program under Minnesota Statutes, § 462A.21, subd. 8.
    • Additional requirements:
    • The agency must continue to address disparities in homeownership rates between white households and Indigenous/People of Color communities.
    • The agency is required to collect, on a voluntary basis, demographic information (race, color, national origin, and sex) from applicants to better understand disparities.
    • Long-term baseline: The program’s base funding for 2028 and beyond is $885,000.

  • Supportive Housing (Sec. 2.4)

    • New appropriation: $0 in 2026 and $33,000,000 in 2027.
    • Purpose: For the supportive housing program under Minnesota Statutes, § 462A.42.
    • Characteristics:
    • This is a one-time appropriation.
    • Money may be used as supplemental emergency resources for permanent supportive housing, rapid rehousing, transitional housing, and related system activities for HUD Continuum of Care program grantees whose funding was awarded in HUD notices from 2024–2025 and whose contracts have expired or will expire, creating funding gaps due to HUD's nonrenewal.
    • The agency may prioritize awards based on need and eligible use.
    • The agency may noncompetitively award grants to existing and previous federal Continuum of Care recipients, notwithstanding standard procurement provisions.

Affected Entities

  • MHFA (primary administrator and recipient of the appropriations).
  • Families and individuals experiencing or at risk of homelessness (via the Family Homelessness Prevention program).
  • Homeowners and prospective buyers, especially in communities experiencing racial/ethnic disparities in homeownership (via the Home Ownership Assistance Fund).
  • HUD Continuum of Care (CoC program recipients, including those with funding gaps due to nonrenewals) and related agencies implementing supportive housing, rapid rehousing, and transitional housing initiatives.

Procedural and Timeline Aspects

  • The bill designates appropriations for two fiscal years: 2026 (first year) and 2027 (second year).
  • It specifies that 2026 allocations are generally zero for the newly created supplemental appropriations, with substantial funding available in 2027.
  • Some provisions temporarily adjust standard procurement and coordination requirements to enable faster grant-making and collaboration with existing grantees and local CoC organizations.
  • The 2028 and beyond baselines for the programs are provided in the bill, signaling longer-term funding expectations beyond the current biennium.

Summary

SF 5060 earmarks $167 million in new funding across three MHFA programs for the 2027 budget year, with targeted supports designed to reduce homelessness, improve homeownership equity, and address gaps in supportive housing caused by HUD funding transitions. It relaxes certain procurement and administrative rules to facilitate quicker deployment of resources and emphasizes data collection on applicant demographics to address disparities.

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

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