Senator Nelson and Minnesota Senate Approve Legislation Prioritizing Housing Affordability and Homeownership

The Minnesota state Senate on Tuesday approved a $115 million bill that aims to open an affordable path to homeownership for more Minnesotans by focusing on housing affordability and closing the homeownership gap.

“Having a safe and secure place to rest your head at the end of each day is essential,” said Senator Carla Nelson (R-Rochester). “Homeownership remains one of the most effective ways to build generational wealth. The Senate’s legislation will help provide more housing options for all and will open up the American Dream of homeownership to more Minnesotans than ever before.”  

This legislation also includes an eviction moratorium phase-out passed earlier in the session. An eviction moratorium was originally established by Governor Walz through Executive Order 20-14, which became effective on March 24, 2020. This important change would restore property rights for owners while leaving vital protections in place for those who most need it. 

A number of other key provisions are included in the legislation:

  • $1.6 million a year to the Workforce Homeownership Program to provide one-time grants of up to $375,000 for the development of workforce and affordable homeownership projects across Minnesota.
  • $150,000 per year increase to the Home Ownership Education, Counseling, & Training (HECAT) Program which helps to prioritize decreasing the homeownership gap between white households and households of color.
  • Allows federally recognized American Indian tribes in Minnesota and tribal housing corporations to be eligible for housing grants in a natural disaster area
  • Requires the Minnesota Housing Finance Agency to consider how quickly a project can be constructed when scoring projects competing for funds.
  • Establishes that cities may not require a Planned Unit Development (PUD) if the builder’s residential development already complies with existing city zoning requirements, and bars PUDs from including aesthetic mandates which are otherwise prohibited by law. Simplifying and making it easier to build homes will help increase the supply and lower the costs of homes in our state. 
  • Ban municipalities from enacting rent control.