Cost-burdened renters could receive further assistance

House lawmakers are reconsidering a new rental assistance program that would assist renters who spend more than 30% of their annual income on rent.

Sponsored by Rep. Michael Howard (DFL-Richfield), HF40 would create and fund a program through the Minnesota Housing Finance Agency to help those cost-burdened renters.

The agency would issue grants to local housing authorities, who would offer the amount of assistance to those eligible calculated on the difference between 30% of the household income and the cost of rent. Eligible renters would be those with a household income up to 50% of the area median income with rent of at least 30%.

Renters receiving Section 8 federal assistance would not be eligible for the state program.

Howard said the program — with an estimated $1.52 billion cost in fiscal years 2023, 2024 and 2025 — would help fill in the gap between those eligible for the program and those receiving federal assistance.

The program would affect more than 550,000 Minnesotans. Howard said there are 200,000 Minnesotans who are considered severely cost-burdened, spending more than 50% of their income in rent.

The bill, as amended, was laid over Tuesday by the House Housing Finance and Policy Committee for possible inclusion in an omnibus bill.

“In terms of the benefits of this bill, it’s about the biggest no-brainer we could have before us because it’s going to help us improve education outcomes, health outcomes,” Howard said. “It’s going to grow our economy, create more stability for families going forward.”

The companion, SF333, is sponsored by Sen. Kari Dziedzic (DFL-Mpls) and is awaiting action by the Senate Housing Finance and Policy Committee.