HF 4561

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/23/2026 03:22 p.m.

A bill for an act
relating to taxation; local government aids; modifying reporting requirements of
the local homeless prevention aid; allowing for redistribution of unspent money;
repealing the sunset of the aid; amending Minnesota Statutes 2024, section 477A.30,
subdivisions 4, 6, 7; repealing Minnesota Statutes 2024, section 477A.30,
subdivision 8.

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

Section 1.

Minnesota Statutes 2024, section 477A.30, subdivision 4, is amended to read:

Subd. 4.

Use of proceeds.

(a) Counties and Tribal governments that receive a distribution
under this section must use the proceeds to fund new or existing family homeless prevention
and assistance projects or programs. These projects or programs may be administered by a
county, a group of contiguous counties jointly acting together, a city, a group of contiguous
cities jointly acting together, a Tribal government, a group of Tribal governments, or a
community-based nonprofit organization. Each project or program must include plans for:

(1) targeting families with children who are eligible for a prekindergarten through grade
12 academic program and are:

(i) living in overcrowded conditions in their current housing;

(ii) paying more than 50 percent of their income for rent; or

(iii) lacking a fixed, regular, and adequate nighttime residence;

(2) targeting unaccompanied youth in need of an alternative residential setting;

(3) connecting families with the social services necessary to maintain the families'
stability in their homes, including but not limited to housing navigation, legal representation,
and family outreach; and

(4) one or more of the following:

(i) providing rental assistance for a specified period of time which may exceed 24 months;
or

(ii) providing support and case management services to improve housing stability,
including but not limited to housing navigation and family outreach.

(b) Counties new text begin and Tribal governments new text end may choose not to spend all or a portion of the
distribution under this section. Any unspent deleted text begin funds deleted text end new text begin money new text end must be returned to the
commissioner of revenue by December 31 of the year following the year that the aid was
received. Any deleted text begin funds deleted text end new text begin money new text end returned to the commissioner under this paragraph must be
added to the overall distribution of aids certified under this section in the following year.
deleted text begin Any unspent funds returned to the commissioner after the expiration under subdivision 8
are canceled to the general fund.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2027.
new text end

Sec. 2.

Minnesota Statutes 2024, section 477A.30, subdivision 6, is amended to read:

Subd. 6.

Appropriation.

(a) $17,600,000 is annually appropriated from the general fund
to the commissioner of revenue to make payments to counties required under this section. new text begin
Unspent money returned to the commissioner of revenue by counties pursuant to subdivision
4, paragraph (b), are appropriated to the commissioner of revenue to make payments to
counties required under this section.
new text end

(b) $2,400,000 is annually appropriated from the general fund to the commissioner of
revenue to make payments to Tribal governments required under this section. new text begin Unspent
money returned to the commissioner of revenue by Tribal governments pursuant to
subdivision 4, paragraph (b), are appropriated to the commissioner of revenue to make
payments to Tribal governments required under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2027.
new text end

Sec. 3.

Minnesota Statutes 2024, section 477A.30, subdivision 7, is amended to read:

Subd. 7.

Report.

(a) No later than January 15, 2025, the commissioner of revenue must
produce a report on projects and programs funded by counties and Tribal governments under
this section. The report must include a list of the projects and programs, the number of
people served by each, and an assessment of how each project and program impacts people
who are currently experiencing homelessness or who are at risk of experiencing
homelessness, as reported by the counties and Tribal governments to the commissioner by
deleted text begin December deleted text end new text begin January new text end 31 each year on a form prescribed by the commissioner. The commissioner
must provide a copy of the report to the chairs and ranking minority members of the
legislative committees with jurisdiction over property taxes and services for persons
experiencing homelessness.

(b) The report in paragraph (a) must be updated every two years new text begin and produced by March
15 of each year the report is due, new text end and the commissioner of revenue must provide copies of
the updated reports to the chairs and ranking minority members of the legislative committees
with jurisdiction over property taxes and services for persons experiencing homelessness
by deleted text begin January deleted text end new text begin March new text end 15 of the year the report is due. deleted text begin Report requirements under this subdivision
expire following the report which includes the final distribution preceding the expiration
in subdivision 8.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2027.
new text end

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2024, section 477A.30, subdivision 8, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 26-07749

477A.30 LOCAL HOMELESS PREVENTION AID.

Subd. 8.

Expiration.

Distributions under this section expire after aids payable in 2028 have been distributed.