Minnesota housing advocates are preparing to put $165 million in new state funding to use as the state continues to grapple with a shortage of affordable housing.

Before wrapping up this year’s session, lawmakers finalized a housing package which will direct most of the money toward housing infrastructure bonds. The investment gives local entities more flexibility to finance affordable housing projects. Another $40 million is set aside for rental aid.

Anne Mavity, executive director of the Minnesota Housing Partnership, said with evictions and foreclosure notices still a concern, the state cannot slow down on housing relief.

“Economics today are stressing a lot of folks out,” Mavity observed. “It’s really hard to afford our lives, and housing is such a core point of it.”

Analysts said election-year politics blocked some legislative priorities but Mavity noted it was encouraging to see lawmakers largely avoid gridlock on affordable housing.

Still, she argued the session was a missed opportunity for local zoning reform. A long-sought bill intended to speed up permitting for denser housing projects failed amid strong opposition from municipal leaders.

Mavity hopes the legislative wins in a difficult political environment lead to more progress. She pointed out elected officials from both major parties appear to be getting a clearer sense of the depth of the housing crisis. She added allowing too many people to lose their homes comes with a larger cost than making housing investments.

“As folks have housing instability, they’re needing to rely on a lot of other emergency systems that cost money,” Mavity emphasized.

Another portion of the housing package will support efforts to build more homes in outstate Minnesota, where employers have job openings but a lack of inexpensive housing can hinder worker recruitment.

Source: Public News Service