SF 3883

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/15/2022 10:26am

A bill for an act
relating to housing; establishing a temporary emergency rental assistance program;
appropriating money.

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

Section 1. new text begin APPROPRIATION; COVID-19 EMERGENCY RENTAL ASSISTANCE
GRANTS.
new text end

new text begin (a) $....... in fiscal year 2022 is appropriated from the state fiscal recovery federal fund
to the commissioner of the Minnesota Housing Finance Agency for COVID-19 emergency
rental assistance grants. This is a onetime appropriation and is available until June 30, 2022.
For the purposes of this section, "state fiscal recovery federal fund" means funds received
by the state from the state fiscal recovery fund in the American Rescue Plan Act, Public
Law 117-2.
new text end

new text begin (b) Eligible applicants for grants under this section include community action agencies
and other public or private nonprofit agencies for the purpose of providing emergency rental
assistance. An eligible applicant seeking grants under this section shall apply to the Minnesota
Housing Finance Agency no later than March 1, 2022. The commissioner shall distribute
grants with the goal of ensuring that grants are distributed equitably throughout the state
based on each community's need for emergency rental assistance. If, after processing grant
applications, the commissioner deems that eligible applicants cannot provide adequate
assistance to a community or area with households in need of assistance under this section,
the commissioner may provide financial assistance to eligible households in a manner
consistent with the requirements of this section.
new text end

new text begin (c) Grantees shall provide financial assistance to eligible households, including the
payment of:
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new text begin (1) rent;
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new text begin (2) rental arrears;
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new text begin (3) utilities and home energy costs;
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new text begin (4) utilities and home energy costs arrears; and
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new text begin (5) other expenses related to housing incurred due, directly or indirectly, to the novel
coronavirus disease "COVID-19" outbreak.
new text end

new text begin Such assistance shall be provided for a period not to exceed 12 months except that grantees
may provide assistance for an additional three months of prospective rent if necessary to
ensure housing stability for a household subject to the availability of funds. Payments shall
be made for rental payments or rental and utility arrears accrued on or after March 13, 2020.
To the extent that applicants for rental assistance have rental arrears, grantees may not make
commitments for prospective rent payments unless they have also provided assistance to
reduce an eligible household's rental arrears. A grantee may pay for rental arrears and utilities
and home energy costs arrears on behalf of a household that no longer resides in the
residential dwelling in which the arrears accrued.
new text end

new text begin (d) For the purposes of this section, an "eligible household" means a household of one
or more individuals who are obligated to pay rent on a residential dwelling and with respect
to which the grantee involved determines:
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new text begin (1) that one or more individuals within the household has:
new text end

new text begin (i) qualified for unemployment benefits; or
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new text begin (ii) experienced a reduction in household income, incurred significant costs, or
experienced other financial hardship due, directly or indirectly, to the COVID-19 outbreak,
which the applicant shall attest in writing;
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new text begin (2) that one or more individuals within the household can demonstrate a risk of
experiencing homelessness or housing instability, which may include:
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new text begin (i) a past due utility or rent notice or eviction notice;
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new text begin (ii) unsafe or unhealthy living conditions; or
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new text begin (iii) any other evidence of such risk, as determined by the eligible grantee involved; and
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new text begin (3) the household has a household income that is not more than 80 percent of the area
median income.
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new text begin (e) Grantees shall pay rental assistance directly to the landlord of the dwelling unit or
manufactured home park occupied by the household for the total amount of qualified rental
arrears and prospective rental assistance. Grantees shall pay utility assistance directly to the
utility provider. Grantees must make reasonable efforts to obtain the cooperation of landlords,
utility providers, and other entities receiving housing-related costs to accept payments.
new text end

new text begin (f) A grantee must not use more than 12 percent of the amount paid to the grantee under
this section for administrative costs attributable to providing financial assistance.
new text end

new text begin (g) A landlord may not bring an eviction action against a tenant for the nonpayment of
rent or proceed with an eviction action for nonpayment of rent if one has already been filed
if the tenant demonstrates the tenant has a pending application for rental assistance under
this section until a grantee makes a determination on the application for rental assistance
or June 1, 2022, whichever is first.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end