Senate Committee Considers Bills To Strengthen Housing Infrastructure in Greater Minnesota

The proposed legislation would provide funding and expand workforce housing resources to address unique challenges in Greater Minnesota cities.

On Feb. 20, the Senate Housing and Homelessness Prevention Committee reviewed four bills aimed at addressing housing infrastructure and workforce housing needs in Greater Minnesota. Three of these bills, which propose general fund appropriations and general obligation bond funding to help cities cover high infrastructure costs, were laid over for possible inclusion in the committee’s budget bill. Infrastructure costs are often the biggest barrier to residential development in Greater Minnesota.  

Infrastructure funding bills

The three infrastructure related housing bills heard by the committee are as follows:

SF 906 — sponsored by Sen. Lindsey Port (DFL-Burnsville).

• Authorizes $5 million in general fund resources to the existing Greater Minnesota Housing Infrastructure Grant Program.
• Read LMC’s written testimony in support of the bill (pdf).

SF 1339 – sponsored by Sen. Grant Hauschild (DFL-Hermantown).

• Authorizes $20 million in general obligation bond proceeds to boost funding for the Greater Minnesota Housing Infrastructure Grant Program.
• Read LMC’s written testimony in support of the bill (pdf).

SF 1227 – sponsored by Sen. Rich Draheim (R-Madison Lake).

• Creates a new Greater Minnesota Senior Housing Infrastructure Program to support infrastructure needed for housing development.
• Geared specifically to focus on the development of housing made available for seniors.
• Read LMC’s written testimony in support of the bill (pdf).

Workforce housing development bill

In addition to the infrastructure bills discussed, SF 1512, sponsored by Sen. Aric Putnam (DFL-St. Cloud) would:

• Allocate an additional $20 million over the next biennium to support the Workforce Housing Development Program, which funds market-rate workforce housing development in Greater Minnesota.
• Read LMC’s written testimony in support of the bill (pdf).

LMC staff take

While housing challenges vary across Minnesota, Greater Minnesota cities face unique barriers, including limited infrastructure funding a fewer workforce housing programs. Many of these bills seek to increase funding for existing programs or to extend one-time funding boosts from the previous biennium, which will revert back to much smaller base budget funding amounts absent additional resources authorized by the Legislature.

For cities interested in current and future funding opportunities, view Minnesota Housing Finance Agency’s local programs.

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