HF 3205

as introduced - 91st Legislature (2019 - 2020) Posted on 04/14/2020 02:00pm

A bill for an act
relating to housing; establishing a state rent assistance program for all low-income,
cost-burdened households; appropriating money; amending Minnesota Statutes
2018, section 462A.05, by adding a subdivision; proposing coding for new law in
Minnesota Statutes, chapter 462A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2018, section 462A.05, is amended by adding a subdivision
to read:

new text begin Subd. 42. new text end

new text begin Rent assistance program. new text end

new text begin The agency may administer the rent assistance
program established in section 462A.2095.
new text end

Sec. 2.

new text begin [462A.2095] RENT ASSISTANCE PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin The state rent assistance account is established
as a separate account in the housing development fund. Money in the account is appropriated
to the agency for grants to local housing authorities for the purposes specified in this section.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this section.
new text end

new text begin (b) "Eligible person" means an individual or family with an annual income up to 50
percent of the area median income as determined by the United States Department of Housing
and Urban Development, adjusted for family size, that is paying more than 30 percent of
annual income on rent. Eligibility is determined at the time an individual or family first
receives rent assistance under this section. "Eligible person" does not include an individual
or family receiving federal tenant-based or project-based assistance under Section 8 of the
United States Housing Act of 1937, as amended.
new text end

new text begin (c) "Local housing authority" means:
new text end

new text begin (1) a housing and redevelopment authority or other local government agency or authority
that administers federal tenant-based or project-based assistance under Section 8; or
new text end

new text begin (2) if the local housing authority declines to administer the program established in this
section, a nongovernmental organization determined by the agency to have the capacity to
administer the program.
new text end

new text begin Subd. 3. new text end

new text begin Grants to local housing authorities. new text end

new text begin (a) The agency may make grants to local
housing authorities to provide rent assistance to eligible persons. To the extent practicable,
the agency must make grants in each county in proportion to the number of persons eligible
for assistance in each county according to the most recent American Community Survey
of the United States Census Bureau.
new text end

new text begin (b) The local housing authority may use its existing procedures to administer the rent
assistance program or it may develop alternative procedures best suited to the service area
in which it administers rent assistance. The agency must approve a local housing authority's
procedures.
new text end

new text begin Subd. 4. new text end

new text begin Amount of rent assistance. new text end

new text begin A local housing authority may provide tenant-based
or project-based rent assistance to eligible persons in amounts equal to the difference between
30 percent of household income and the rent charged, plus an allowance for utilities if not
included in rent. A local housing authority may not provide assistance that is more than the
difference between 30 percent of household income and 110 percent of the applicable fair
market rent for the location and family size of the eligible person as determined by the
United States Department of Housing and Urban Development.
new text end

new text begin Subd. 5. new text end

new text begin Administrative fee. new text end

new text begin A local housing authority may use up to the lesser of $.......
or ....... percent of a grant each year for administrative costs.
new text end

Sec. 3. new text begin APPROPRIATION; RENT ASSISTANCE.
new text end

new text begin $....... in fiscal year .... is appropriated from the general fund to the Minnesota Housing
Finance Agency for transfer to the housing development fund for the purposes of Minnesota
Statutes, section 462A.2095.
new text end