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SF 4565

Workforce housing development program appropriation increase provision

2025-2026 Regular Session Introduced by Grant Hauschild

Raises funding for Minnesota's Workforce Housing Development program, expanding total Housing Development Fund allocations and enabling more housing projects with restricted or own

Referred to Housing and Homelessness Prevention
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Bill Summary · SF 4565

Summary of SF 4565 (2025-2026) — Workforce Housing Development Program Appropriation Increase

Purpose and intent

  • The bill seeks to increase the appropriation for Minnesota’s workforce housing development program, as authorized under Minnesota Statutes, section 462A.39.
  • It is designed to bolster funding for the workforce housing development program within the broader Housing Development Fund, enabling more properties and units to be developed or funded.

Key provisions and changes

Section 1 — Appropriation levels for the Housing Development Fund

  • Amends Laws 2025, chapter 32, article 1, section 2, subdivision 1 to adjust total and sub-appropriations.
  • Summary of appropriation figures (as introduced):
    • Subdivision 1 (Total Appropriation): increases the program total to 101,148,000, with a prior figure of 97,798,000 noted for comparison.
    • The section clarifies that unless otherwise stated, appropriations for the programs in this section are part of the agency’s permanent budget base, and are available for purposes of the Housing Development Fund.
    • The default interpretation is that these funds, unless specified otherwise, remain in the agency’s ongoing budget framework.

Section 2 — Workforce Housing Development appropriation

  • Amends Laws 2025, chapter 32, article 1, section 2, subdivision 3, to reflect a revised appropriation for the Workforce Housing Development program.
  • Current and revised allocations shown:
    • The line item “Workforce Housing Development” shows:
    • 2,000,000 (baseline amount)
    • 2,000,000 (current year or base figure)
    • 17,000,000 (proposed or amended total)
  • Textual description of the program:
    • This appropriation supports the greater Minnesota workforce housing development program, established under Minnesota Statutes, section 462A.39.
    • If an applicant requests funding and the agency approves, funded properties may include:
    • A portion of income- and rent-restricted units
    • Owner-occupied homes
  • The base appropriation for this program is set at $2,000,000 in fiscal year 2028 and thereafter, indicating a plan for a long-term sustained funding level beginning in FY 2028.

Who/what would be affected

  • Affected entity: Minnesota Housing Finance Agency (or the agency administering the Housing Development Fund programs) responsible for distributing funds under the Workforce Housing Development program.
  • Beneficiaries:
    • Workforce housing projects in Minnesota, including both rental units with income- or rent-restricted components and potentially owner-occupied homes within funded properties.
    • Communities in greater Minnesota seeking affordable housing aligned with workforce needs.
  • Potential developers, non-profits, and local governments pursuing workforce housing projects that qualify for funding and approval by the agency.

Procedural and timeline notes

  • Status: Introduced and referred to the Housing and Homelessness Prevention committee (as of 2026-03-18).
  • Effective date: The bill provides that the stated appropriation base applies in fiscal year 2028 and thereafter; specific timing for the new funding levels may depend on enactment and ongoing budget processes.
  • Budget base: Unless otherwise indicated, appropriations are part of the agency’s permanent budget base, which may affect long-term budgeting and planning.

Significance

  • The bill represents an increased investment in Minnesota’s workforce housing initiatives, with larger total funding for the Housing Development Fund and an explicit base increase for the Workforce Housing Development program starting in FY 2028.
  • By allowing funded properties to include income- and rent-restricted units and potentially owner-occupied homes, the bill aims to expand flexibility for developing more comprehensive housing solutions for workers across the state.

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

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