SF 3596

5th Engrossment - 94th Legislature (2025 - 2026)

Posted on 03/12/2026 09:48 a.m.

A bill for an act
relating to taxation; aids to local governments; establishing a onetime emergency
rental assistance aid for counties and Tribal governments; requiring the claims
administrator to return unused funds; canceling a prior appropriation; temporarily
extending time period to correct delinquent rent; appropriating money; requiring
a report.

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

Section 1. new text begin APPROPRIATION; EMERGENCY RENTAL ASSISTANCE AID.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
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new text begin (b) "City" means a statutory or home rule charter city.
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new text begin (c) "Commissioner" means the commissioner of revenue.
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new text begin (d) "Household" means all individuals who occupy a single detached dwelling unit or
a single unit of a multiple dwelling unit as their primary residence.
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new text begin (e) "Eligible household" means a household that:
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new text begin (1) has a rent obligation for the household's primary residence at an address in Minnesota;
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new text begin (2) has income at or below 200 percent of federal poverty guidelines;
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new text begin (3) experienced financial hardship after August 31, 2025, including but not limited to
loss of income or unemployment; and
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new text begin (4) is at risk of experiencing housing instability or homelessness, including but not
limited to risk of lease termination or eviction.
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new text begin (f) "Emergency rental assistance" means direct financial support for any or all of the
following rent obligations for an eligible household's primary residence:
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new text begin (1) up to two months of prospective rent;
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new text begin (2) rent arrears incurred after August 31, 2025;
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new text begin (3) up to two months of prospective utility costs;
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new text begin (4) utility arrears incurred after August 31, 2025; or
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new text begin (5) fines and fees related to nonpayment of rent or utilities.
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new text begin (g) "Median rent" means the most recent estimates of median gross rent made or
conducted by the United States Bureau of the Census that are available as of the effective
date of this section. For Tribal land that does not have an estimate of median gross rent
available for any of the preceding three years, median rent means the average of the most
recent estimates of median gross rent made or conducted by the United States Bureau of
the Census that are available as of the effective date of this section for the Minnesota counties
in which the Tribal land is physically located.
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new text begin (h) "Tribal government" means any of the 11 federally recognized Indian Tribes located
wholly or partially in Minnesota.
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new text begin (i) "Tribal land" means all on- and off-reservation land subject to the civil regulatory
jurisdiction of a particular Tribal government.
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new text begin Subd. 2. new text end

new text begin Distribution. new text end

new text begin (a) The commissioner must calculate the amount of emergency
rental assistance aid payable to each county and Tribal government under this section.
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new text begin (b) Each county shall receive an amount of aid calculated using the county distribution
formula under Minnesota Statutes, section 477A.30, subdivision 3; the population data and
distribution factors used to certify aids payable in 2026 under Minnesota Statutes, section
477A.30; and the appropriation amount provided in subdivision 7 for aid to counties.
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new text begin (c) No later than ten days after the effective date of this section, a Tribal government
may notify the commissioner in the form and manner prescribed by the commissioner that
the Tribal government declines to receive aid under this section. Each Tribal government
that does not decline to receive aid by the deadline imposed under this paragraph shall
receive an equal share of the appropriation amount provided in subdivision 7 for aid to
Tribal governments.
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new text begin Subd. 3. new text end

new text begin Use of proceeds; administration. new text end

new text begin (a) Of the aid received under this section,
each county and Tribal government must use:
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new text begin (1) 95 percent of the payment amount to provide emergency rental assistance to eligible
households; and
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new text begin (2) five percent of the payment amount to evaluate compliance with the requirements
of this section, detect and prevent misuse of aid received and emergency rental assistance
distributed under this section, and prosecute fraud related to this section.
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new text begin (b) Emergency rental assistance under this section may be administered by the same
entities allowed to administer family homeless prevention and assistance projects or programs
under Minnesota Statutes, section 477A.30, subdivision 4, paragraph (a).
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new text begin (c) Emergency rental assistance under this section may be administered by:
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new text begin (1) a county;
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new text begin (2) a group of contiguous counties jointly acting together;
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new text begin (3) a city;
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new text begin (4) a group of contiguous cities jointly acting together;
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new text begin (5) a Tribal government;
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new text begin (6) a group of Tribal governments; or
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new text begin (7) a community-based nonprofit organization that administered family homeless
prevention and assistance projects or programs under Minnesota Statutes, section 477A.30,
subdivision 4, paragraph (a), at any time between January 1, 2025, and the effective date
of this section.
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new text begin (d) Entities that administer emergency rental assistance under this section must require
an applicant to submit the documentation needed to verify that the applicant is an eligible
household and to determine the amount of emergency rental assistance the applicant needs.
Applicant self-attestation alone is insufficient for eligibility verification and need
determination.
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new text begin (e) Eligible households that include at least one minor must be prioritized in the
distribution of emergency rental assistance under this section.
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new text begin (f) Each eligible household may receive a total amount of emergency rental assistance
under this section no greater than five times the median rent for the county or Tribal land
where the household's primary residence is located.
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new text begin (g) Counties and Tribal governments must spend aid received under this section by the
last day of the fourth month following the month of the effective date of this section. Counties
and Tribal governments must notify the commissioner of the amount of aid not spent by
the deadline imposed under this paragraph and return that amount to the commissioner
within three months of the spending deadline for cancellation to the general fund. The
commissioner shall prescribe the form and manner of the notification and the return of
unspent aid.
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new text begin (h) Counties, Tribal governments, and entities that administer the program may not retain
any portion of the funds received for administrative costs.
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new text begin Subd. 4. new text end

new text begin Data privacy. new text end

new text begin Data on applicants or eligible households collected or created
pursuant to this section is private data on individuals, as defined in Minnesota Statutes,
section 13.02, subdivision 12, except the data may be disseminated to verify that an applicant
is an eligible household.
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new text begin Subd. 5. new text end

new text begin Emergency rental assistance not income. new text end

new text begin Notwithstanding any other law to
the contrary to the extent permitted by federal law, emergency rental assistance distributed
to eligible households under this section must not be considered income, assets, or personal
property for purposes of determining or recertifying eligibility for state public assistance,
including but not limited to:
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new text begin (1) child care assistance programs under Minnesota Statutes, chapter 142E;
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new text begin (2) food support under Minnesota Statutes, chapter 142F;
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new text begin (3) the Minnesota family investment program and diversionary work program under
Minnesota Statutes, chapter 142G;
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new text begin (4) medical assistance under Minnesota Statutes, chapter 256B;
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new text begin (5) general assistance and Minnesota supplemental aid under Minnesota Statutes, chapter
256D;
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new text begin (6) housing support under Minnesota Statutes, chapter 256I;
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new text begin (7) MinnesotaCare under Minnesota Statutes, chapter 256L; and
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new text begin (8) economic assistance programs under Minnesota Statutes, chapter 256P.
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new text begin Subd. 6. new text end

new text begin Certification and payment. new text end

new text begin No later than 15 days after the effective date of
this section, the commissioner must:
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new text begin (1) pay the emergency rental assistance aid calculated under subdivision 2 to each county
and Tribal government; and
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new text begin (2) certify the maximum amount of emergency rental assistance each eligible household
may receive in each county and Tribal land under subdivision 3.
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new text begin Subd. 7. new text end

new text begin Appropriation. new text end

new text begin (a) $40,000,000 in fiscal year 2026 is appropriated from the
general fund to the commissioner of revenue for emergency rental assistance aid under this
section. This is a onetime appropriation.
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new text begin (b) Of the amount appropriated in paragraph (a), $35,200,000 is for aid to counties and
$4,800,000 is for aid to Tribal governments.
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new text begin (c) Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, the commissioner
may not retain any portion of the amount appropriated in paragraph (a) for administrative
costs of this section.
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new text begin Subd. 8. new text end

new text begin Report. new text end

new text begin (a) Beginning 45 days after the effective date of this section and every
30 days thereafter, each county and Tribal government that receives aid under this section
must submit the following information to the commissioner in the form and manner
prescribed by the commissioner for each entity that administers emergency rental assistance
on behalf of the county or Tribal government:
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new text begin (1) the total number of households to which emergency rental assistance was distributed;
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new text begin (2) demographic characteristics of recipient households, including household size,
income, and how many include at least one minor;
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new text begin (3) the minimum, mean, median, and maximum amounts of emergency rental assistance
distributed per recipient household;
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new text begin (4) the number of households to which the maximum amount of emergency rental
assistance allowed under subdivision 3 was distributed; and
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new text begin (5) of the aid amount received, how much was spent and how much remains unspent.
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new text begin The final submission required of each county and Tribal government is due after the county
or Tribal government spends all aid received under this section or returns aid not spent to
the commissioner under subdivision 3, paragraph (g).
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new text begin (b) Beginning 60 days after the effective date of this section and every 30 days thereafter,
the commissioner must submit the following information in a report to the legislative auditor
and to the chairs and ranking minority members of the legislative committees with jurisdiction
over taxes and housing, and file the report with the Legislative Reference Library in
compliance with Minnesota Statutes, section 3.195:
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new text begin (1) a compilation of the information received from counties and Tribal governments
under paragraph (a);
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new text begin (2) a list of counties and Tribal governments that did not submit the information required
under paragraph (a) to the commissioner, and a list of entities that administer emergency
rental assistance on behalf of a county or Tribal government that did not submit the
information required under paragraph (a) to the county or Tribal government; and
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new text begin (3) for the final report only, the amount of aid returned to the commissioner and canceled
to the general fund under subdivision 3, paragraph (g).
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new text begin The final report required of the commissioner is due after all counties and Tribal governments
spend all aid received under this section or return all aid not spent to the commissioner
under subdivision 3, paragraph (g).
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
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Sec. 2. new text begin RETURN OF UNUSED TAX-FORFEITED SETTLEMENT
APPROPRIATION; CANCELLATION.
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new text begin Subdivision 1. new text end

new text begin Return of funds. new text end

new text begin Notwithstanding Laws 2024, chapter 113, section 1,
subdivision 5, on June 29, 2026, the claims administrator appointed under Laws 2024,
chapter 113, to settle litigation related to the state's retention of tax-forfeited lands, surplus
proceeds from the sale of tax-forfeited lands, and mineral rights in those lands, must return
to the commissioner of management and budget the lesser of $40,000,000 or the amount of
the appropriation under Laws 2024, chapter 113, section 1, subdivision 5, that is not needed
to settle claims under Laws 2024, chapter 113.
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new text begin Subd. 2. new text end

new text begin Cancellation. new text end

new text begin The commissioner of management and budget must cancel the
amount received under subdivision 1 to the general fund within one day of the receipt of
the funds.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
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Sec. 3. new text begin EXTENSION OF TIME PERIOD TO CORRECT RENT DELINQUENCY.
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new text begin (a) Notwithstanding Minnesota Statutes, section 504B.321, subdivision 1a, paragraph
(a), clause (6), and paragraph (c), if the residential tenant fails to correct the rent delinquency
within 30 days of the delivery or mailing of the notice, or the number of days required by
a local government rule or law if the notice period prior to an eviction required by the local
government is longer than 30 days, or fails to vacate, then the landlord may bring an eviction
action under Minnesota Statutes, section 504B.321, subdivision 1, based on nonpayment
of rent.
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new text begin (b) The landlord must provide the following statement in the notice required under
Minnesota Statutes, section 504B.321, subdivision 1a, paragraph (a): "Your landlord can
file an eviction case if you do not pay the total amount due or move out within 30 days from
the date of this notice. Some local governments may have an eviction notice period longer
than 30 days. The law requiring a notice of 30 days expires when funding for the emergency
rental assistance payments expires. Upon expiration of the law, the current law notice of
14 days under Minnesota Statutes, section 504B.321, subdivision 1a, applies, unless a local
government has provided a longer notice period.
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new text begin (c) This section expires on the last day of the fourth month following the month of the
effective date of this section.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to eviction actions filed on or after that date.
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