Subsidized housing changes

A clarification to existing law could help cities enforce subsidized housing contracts.

HF1670/SF1033*, sponsored by Rep. Carlos Mariani (DFL-St. Paul) and Sen. John Marty (DFL-Roseville), would clarify that cities have the right to enforce agreements with property owners who try to raise rents in publicly subsidized housing.

“It clarifies the right of cities to enforce a contract with a housing owner or developer where there has been a direct subsidy provided, like a loan, bonds, tax subsidies, etc. … in exchange for a promise to keep rents affordable,” Mariani explained.

Mariani said the bill is a response to a situation in a Twin Cities suburb where a developer “substantially” raised rents to subsidized housing.

Speaking in support of the bill, Rep. Mark Buesgens (R-Jordan) said it is fair to expect owners to abide by the contracts.

“If a developer’s going to feed at the public trough, then that developer shouldn’t be surprised that they’re going to be under some restrictions,” Buesgens said.

Passed 97-32 by the House on May 8, it now returns to the Senate, where a different version passed 57-8 on April 27.