Office of the Revisor of Statutes
SF 1801
Introduction - 94th Legislature (2025 - 2026)
Posted on 02/25/2025 09:36 a.m.
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A bill for an act
relating to housing; modifying payment provisions of the state rental assistance
program; amending Minnesota Statutes 2024, section 462A.2095, subdivisions 1,
2, 3, 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 462A.2095, subdivision 1, is amended to
read:
Subdivision 1.
Program established.
(a) The state rent assistance account is established
as a separate account in the housing development fund. Money in the account deleted text begin is appropriated
to the agency for grantsdeleted text end new text begin shall be distributed by the commissioner of revenue directlynew text end to
program administrators for the purposes specified in this section.
(b) Money deposited in the account under section 297A.9925 is for deleted text begin grants todeleted text end new text begin funds fornew text end
program administrators in the metropolitan counties as defined in section 473.121,
subdivision 4.
Sec. 2.
Minnesota Statutes 2024, section 462A.2095, subdivision 2, is amended to read:
Subd. 2.
Definitions.
(a) For purposes of this section, the following terms have the
meanings given.
(b) "Eligible household" means a household with an annual income of 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 the
household's annual income on rent. Eligibility is determined at the time a household first
receives rent assistance under this section. deleted text begin Eligibility shall be recertified every year thereafter.deleted text end
Eligible household does not include a household receiving federal tenant-based or
project-based assistance under Section 8 of the United States Housing Act of 1937, as
amended.
(c) "Program administrator" means:
(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 of the
United States Housing Act of 1937, as amended;
(2) a Tribal government or Tribally designated housing entity; or
(3) if there is no entity under clause (1) or (2) with the capacity to administer the program,
a nongovernmental organization determined by the agency to have the capacity to administer
the program.
Sec. 3.
Minnesota Statutes 2024, section 462A.2095, subdivision 3, is amended to read:
Subd. 3.
deleted text begin Grantsdeleted text end new text begin Fundingnew text end to program administrators.
(a) deleted text begin The agency may make grants
to program administrators to provide rental assistance for eligible householdsdeleted text end new text begin Program
administrators under subdivision 2, paragraph (c), clause (1), shall be funded directly by
the commissioner of revenue, and program administrators under subdivision 2, paragraph
(c), clause (2), shall be funded through the agency to provide rental assistance for eligible
householdsnew text end . For both tenant-based and project-based assistance, program administrators
shall pay assistance directly to housing providers. Rental assistance may be provided in the
form of tenant-based assistance or project-based assistance. Notwithstanding the amounts
awarded under subdivision 1, paragraph (b), and to the extent practicable, deleted text begin the agency must
make grants statewidedeleted text end new text begin funding shall be providednew text end in proportion to the number of households
eligible for assistance in each county according to the most recent American Community
Survey of the United States Census Bureau.
(b) The program administrator may use its existing procedures to administer the rent
assistance program or may develop alternative procedures with the goals of reaching
households most in need and incentivizing landlord participation. The agency must approve
a program administrator's alternative procedures. Priority for rental assistance shall be given
to households with children 18 years of age and underdeleted text begin , anddeleted text end new text begin that also havenew text end annual incomes
of up to 30 percent of the area median income. Program administrators may establish
additional priority populations based on local need.
Sec. 4.
Minnesota Statutes 2024, section 462A.2095, subdivision 4, is amended to read:
Subd. 4.
Amount of rent assistance.
A program administrator may provide tenant-based
or project-based vouchers in amounts equal to the difference between 30 percent of household
income and the rent chargeddeleted text begin , plus an allowance for utilities if not included in rentdeleted text end . A program
administrator may not provide assistance that is more than the difference between 30 percent
of the tenant's gross income and 120 percent of the payment standard, plus utilities, as
established by the local public housing authoritydeleted text begin , unless otherwise authorized by the agencydeleted text end .