Public Housing units are publicly owned and ensure that residents generally pay only 30% of their income for housing, including utilities.
- MN has about 20,000 public housing units in 210 cities statewide.
- Nearly two thirds of MN units serve the elderly and people with disabilities.
- Average household income is about $12,200 for MN public housing residents.
Federal:
- Over the last twenty years, more often than not, the federal government failed to provide operating funds at level needed.
- Capital funds shortages created financial backlog $20+ billion nationally, and over $300 million in Minnesota.
State:
- In 2010, $10 million in bonding authority for public housing was passed by the MN legislature, but was line-item vetoed by Gov. Pawlenty.
- MN legislature passed state funding for public housing in only the 2007 and 2009 sessions for capital funding.
Federal:
- National Low Income Housing Coalition (NLIHC) advocates that public housing authorities need a sustainable approach to operating and rebuilding the nation’s public housing including:
- Ensuring that 100% of operating needs are funded.
- Ensuring ensuring sufficient capital funding.
- Some advocates propose restructuring financing of public housing to enable use of tax credits.
- 2011 Obama budget proposal includes $4.829 billion for operating needs and $2.044 billion for capital needs. While HUD says this covers 100% of formula estimated eligibility, NAHRO and industry members are concerned that the estimates do not reflect true costs and the proposed funds are not enough.
- The FY 2010 budget provided $135 million for the public housing restructuring program, HOPE VI, and also provided first-time funding of $65 million to Choice Neighborhoods Initiative (CNI). CNI is a program that enables redevelopment of low-income privately owned housing, as well as public housing, in neighborhoods with concentrated poverty.
- The 2011 budget proposal completely replaces HOPE VI with CNI, although the program itself has yet to be authorized by congress. NLIHC and others are concerned that CNI does not go far enough in requiring replacement of lost units, does not provide for adequate program evaluation, does not adequately address public housing needs, and is too broad in scope to rely solely on HUD funds.
- Section 8 Voucher Reform Act (SEVRA) includes new income calculations for public housing and a provision (called “HIP”) for some housing authorities to merge Section 8 and public housing funding.
State:
- MHP and Minnesota Chapter of the National Association of Housing and Redevelopment Officials (NAHRO) support new state resources to repair public housing.
Federal Funding:
- 2010 annual appropriations are $2.5 billion for capital funds and $4.6 for operating needs.
- • The American Recovery and Reinvestment Act (ARRA) of 2009 included $3 billion for capital expenditures and $1 billion by competition. $47 million went to MN by formula to 124 public housing authorities. $30 million went to 5 MN housing authorities by competition for energy efficiency. (Click here and here for a list of competitive awards.)
- 2009 annual appropriations were $2.5 billion for capital needs and $4.5 billion for operating needs. MN housing authorities received about $43 million for operating and $35 million for capital needs.
State Funding:
- 2009 legislature approved $2 million in general obligation bonding for public housing.
- In 2007 MN appropriated $2.5 million for public housing repairs, which was matched by $2.5 million from MHFA.
Administration:
- HUD administers program nationally.
- In MN 124 housing authorities operate public housing.
Minnesota NAHRO is a contributor to MHP's coverage of this issue.
Updated March 22, 2010.