Omnibus housing bill approved

An estimated $90 million appropriation for the 2010-2011 biennium to the Minnesota Housing Finance Agency was approved by a House division April 15.

The housing portion of the omnibus housing and public health finance bill, HF2150, would provide help for struggling homeowners and renters and fix a problem with a trust fund for tenants of manufactured home parks. Rep. Karen Clark (DFL-Mpls) sponsors the bill, which has no Senate companion.

An additional $10.8 million from the federal stimulus funds is expected to be routed directly to other state departments or local housing agencies for programs related to foreclosure, home financing and renovations of homes for low- to moderate-income families.

Houses built prior to 1978 likely contain lead-based paint, which increases the risk of lead poisoning. The bill includes revised regulations related to companies who work on lead abatement renovations. It includes training policies and certification requirements of lead technicians.

The budget allocations break down to:

• $10.5 million for the housing trust fund;

• $9 million for the challenge grant program;

• $8.9 million for the acquisition, renovation and debt restructuring of federally assisted rental property and equity loans;

• $7.4 million for the family homeless prevention and assistance programs;

• $4.2 million to rehabilitate rental housing developments; and

• $2.6 million for a rental housing assistance program for adults with mental illness.

Division members also seek to correct problems with a law intended to help homeowners relocate when a manufactured home park closes.

The law requires that park owners and lot tenants pay $1 per month into a trust fund. Tenants can draw on the account if they are required to move because the home park closes. However, the manufactured home relocation trust fund is not adequately funded, due to lax enforcement.

The bill would add language from HF356, sponsored by Rep. Paul Gardner (DFL-Shoreview), which enables park owners to list the annual fee along with their tenants’ mobile home lot rent. Park owners would collect and pass the fees on to Minnesota Management and Budget for deposit in the trust fund.