SF 4971
Introduction - 94th Legislature (2025 - 2026)
Posted on 04/10/2026 09:04 a.m.
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A bill for an act
relating to capital investment; establishing an emergency shelter facility grant
program; proposing coding for new law in Minnesota Statutes, chapter 256K.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
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[256K.50] EMERGENCY SHELTER FACILITIES.
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new text begin Subdivision 1. new text end
new text begin Definitions. new text end
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(a) For the purposes of this section, the following terms have
the meanings given.
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(b) "Commissioner" means the commissioner of human services.
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(c) "Eligible applicant" means a Tribal government, not-for-profit corporation under
section 501(c)(3) of the Internal Revenue Code, statutory or home rule charter city, county,
or housing and redevelopment authority established under section 469.003.
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(d) "Emergency shelter facility" means a facility that provides a safe, sanitary, accessible,
and suitable emergency shelter for individuals and families experiencing homelessness,
regardless of whether the facility provides emergency shelter during the day, overnight, or
both.
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new text begin Subd. 2. new text end
new text begin Creation of accounts. new text end
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Two emergency shelter facility accounts are created.
One account is created in the general fund and one account is created in the bond proceeds
fund. Money in the accounts is appropriated to the commissioner to make grants under this
section. Money in the accounts is available until encumbered or spent subject to section
16A.642.
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new text begin Subd. 3. new text end
new text begin Project criteria. new text end
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The commissioner shall prioritize grants under this section
for projects that improve or expand emergency shelter facility options by:
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(1) adding additional emergency shelter facilities by renovating existing facilities not
currently operating as emergency shelter facilities;
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(2) adding additional emergency shelter facility beds by renovating existing emergency
shelter facilities, including major projects that address an accumulation of deferred
maintenance or repair or replacement of mechanical, electrical, and safety systems and
components in danger of failure;
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(3) adding additional emergency shelter facility beds through acquisition and construction
of new emergency shelter facilities; and
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(4) improving the safety, sanitation, accessibility, and habitability of existing emergency
shelter facilities, including major projects that address an accumulation of deferred
maintenance or repair or replacement of mechanical, electrical, and safety systems and
components in danger of failure.
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new text begin Subd. 4. new text end
new text begin Eligible uses of grant money. new text end
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A grant under this section may be used to pay
for 100 percent of total project capital expenditures or a specified project phase, up to
$1,000,000 per project.
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new text begin Subd. 5. new text end
new text begin State and local building codes met. new text end
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All projects funded with a grant under
this section must meet all applicable state and local building codes at the time of project
completion.
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new text begin Subd. 6. new text end
new text begin Lease or management agreements. new text end
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An eligible applicant may enter into a
lease or management agreement for operation of the emergency shelter facility, subject to
section 16A.695.
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new text begin Subd. 7. new text end
new text begin Competitive request for proposal process; priority. new text end
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(a) The commissioner
must use a competitive request for proposal process to identify potential projects and eligible
applicants on a statewide basis. At least 40 percent of the appropriation for this purpose
must be awarded to projects located in greater Minnesota. If the commissioner does not
receive sufficient eligible funding requests from greater Minnesota to award at least 40
percent of the appropriation for this purpose to projects in greater Minnesota, the
commissioner may award the remaining money to other eligible projects.
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(b) For eligible applicants seeking funding under this section for the acquisition and
construction of new emergency shelter facilities under subdivision 3, clause (3), the
commissioner must give priority to projects in which the eligible applicant will provide at
least ten percent of total project funding.
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new text begin Subd. 8. new text end
new text begin Eligible projects. new text end
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(a) The proceeds of state general obligation bonds may only
be expended for grants to statutory or home rule charter cities, counties, or housing and
redevelopment authorities established under section 469.003.
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(b) Appropriations from the general fund may be expended for grants to Tribal
governments, not-for-profit corporations under section 501(c)(3) of the Internal Revenue
Code, statutory or home rule charter cities, counties, or housing and redevelopment authorities
established under section 469.003.
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