As of Monday afternoon, the Legislature passed a bill which, if signed, would permanently reduce the Renters’ Credit for low- and moderate-income Minnesotans and would cut state aid to local governments.
The cuts are included as part of HF 130 the first major budget cut bill of the session, which results in a $900 million reduction in state spending. The bill passed out of conference committee Monday. Once out of conference committee, advocates opposing these cuts will rely upon Gov. Dayton to veto the bill in full, as this bill cannot be line-item vetoed.
Governor Dayton’s bonding proposal released on January 31, includes a little something for housing. Picking up a housing bonding proposal that didn’t make it last year, the Governor’s $1 billion bonding proposal includes $10 million in non-profit bonds to acquire and rehab foreclosed properties. The bonds, to be issued by Minnesota Housing, would be used for two purposes:
to acquire and rehab foreclosed properties to be used for rental housing for low- and moderate-income households
for community land trusts to acquire the land portion of foreclosed properties. This land would be leased to low- and moderate-income homebuyers.
Annual debt service for the bonds is $800,000 for 20 years and would come from the general fund.
This proposal is part of Dayton’s $1 billion bonding proposal designed to create jobs and address important infrastructure projects. In an interesting approach, Dayton specified $531 million in proposed projects, but left the other $470 million for the Legislature to decide upon.
Click here for full details of the bonding proposal.
It was a time of transition for Minnesota Housing and its board at the Agency's January meeting, with incoming Commissioner Mary Tingerthal making an appearance and discussions of this year's state budget for housing, the role of the Agency in rural housing, and cooperative ownership of manufactured home parks.