Lt. Governor Peggy Flanagan became a homeowner roughly one month ago, after being a lifelong renter. What she described as a “tremendous undertaking” for her family is a similar journey that many Minnesotans are facing as they begin to navigate the home-buying process.
With hundreds of millions of dollars allocated to homeownership programs and rental assistance, state leaders are traveling far and wide to highlight these initiatives aimed at helping individuals secure a home.
Flanagan recently toured newly built townhomes in Northfield to highlight the significant housing investments being made in the state. The Spring Creek II project was made possible through investments from the 2019 legislative session and provides project-based voucher units for those with income restrictions. Referring to the Northfield townhomes, Flanagan emphasized the need to continue the momentum of housing investment.
“As we go into 2024, we need to continue to build on each session,” she said. “I think based on this past legislative session, we are going to see a pretty significant increase in the housing that’s available for folks. But it’s not going to come online right away.”
This past spring, Governor Tim Walz signed the $1.065 billion housing omnibus bill, making it the largest single investment in housing in Minnesota’s history. An additional $250 million from other legislation going to housing brings the total to $1.313 billion.
An estimated $625 million will go to existing programs with $440 million going toward new programs and initiatives. Roughly half of the funding is geared toward homeownership and rental development.
Largest investment in housing
While this is the state’s largest investment in housing, Flanagan shared that these resources must be fully utilized, if these programs are to be offered again in the future.
“I think the best way for us to make the case for additional funding going forward is that we see that people are taking advantage of what is available to them. And that we’re seeing changes in the home ownership gap,” she said.
Flanagan is scheduled to visit more housing developments across the state to assess the progress of past projects selected for funding. On December 15, Flanagan and Housing Commissioner Jennifer Ho will announce the 2023 housing project selections. Last year’s funding selections totaled over $160 million and supported the creation and preservation of roughly 2,100 homes, apartments, and lots.
Flanagan will also travel to Duluth on December 19, to visit projects selected in previous years. She plans to evaluate the progress, speak to residents, and discuss their needs.
Despite the fact that Minnesotans in the metro and greater regions have differing needs, they often prioritize the same issues close to home.
Statewide priority
“I’d say housing and childcare are the two things that I hear most about, regardless of where I am in the state,” Flanagan stated. “Access to affordable housing is an issue in the urban core, in the suburbs, [and] in greater Minnesota. It just might look a little bit different depending on where you are.”
No matter where an individual may reside, the state’s aim has been to take a holistic approach by putting housing in the context of everyday life. Transportation, education, and job opportunities are some factors utilized to create a broader picture of what housing development looks like for Minnesotans.
These considerations are important to state officials as they plan to make the state a place to find a suitable home to raise the next generation of Minnesotans.
“The ways that we have approached policymaking or investments in our budget has really been [that] we want Minnesota to be the best place to raise a child,” Flanagan said.
While the focus on housing investment has been on rental assistance and pathways to homeownership, there has been additional work in the legislature aimed at creating renter protections.
Increasing protection for renters
The Judiciary and Public Safety Bill created a 14-day notice requirement for landlords, prior to filing for an eviction. It also provides residents of public housing a right to counsel in breach-of-lease proceedings. Although these legislative changes help protect renters, Flanagan believes that more can be done.
“One of the things that didn’t get done last session that I think is important is making sure that you can’t be discriminated against if you have a Section 8 housing voucher,” she said.
Flanagan called on those with Section 8 housing vouchers to help make the case for further protections.
She pointed to members of the Hmong and Somali communities who had long advocated for development of affordable housing that would accommodate larger families.
“It’s something that we’ve heard consistently from the Somali community that we need to have access to giving these grants to folks who are building appropriate housing that meets the needs of families,” Flanagan stated.
The administration created a $10 million fee-based home-purchasing program to incentivize homeownership development for interest-averse buyers. Since Muslims are forbidden to engage in interest-bearing loans, they’ve long been unable to buy homes.
“I am eager to see the results of that and to be able to do more there because I think it is a significant piece of the homeownership gap when 90 percent of the Muslim community is renting,” Flanagan said.
Investing in housing stability
The state’s housing investment is also aimed at supporting Minnesotans facing eviction or at risk of homelessness by allocating tens of millions of dollars towards funds dedicated to housing stability. The $120 million in funds for the Family Homeless Prevention program helps provide families with assistance on first or last month’s rent.
In addition, Flanagan outlined the importance of the Minnesota Interagency Council on Homelessness, an initiative involving several of Minnesota’s state agencies, aimed at eliminating barriers to housing.
“It’s all grounded in health justice, housing justice, and racial justice and it’s probably the first time that the word justice has been embedded in policy documents for the state,” she said. “It has really challenged us to remove a lot of those silos between agencies, making sure that people are working together.”
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