Minnesota’s family homeless prevention program could see $100 million boost

Rep. Michael Howard (DFL-Richfield) sponsors more than $5 billion worth of proposals this year to address housing issues.

One of his smaller requests, HF1440, would provide a one-time $100 million appropriation in fiscal year 2023 to the Minnesota Housing Finance Agency for the Family Homeless Prevention and Assistance Program.

On Tuesday, the House Housing Finance and Policy Committee laid the bill over, as amended, for future consideration.

“There’s something perverse about having a $17 billion state budget surplus while homelessness is skyrocketing, while families are suffering,” Howard said.

There are acute challenges facing Minnesotans right now, he said, as well as long-term structural changes needed. This bill would address the former.

The program provides short-term assistance for people who are homeless or at risk of becoming homeless. This can include payments to cover rent, mortgages or utility costs to avoid foreclosure or eviction.

Nelima Sitati Munene, executive director of African Career Education and Resources Inc., emphasized the importance of homelessness prevention and emergency rental assistance.

After an eviction filing, it takes about five years for most of the tenants she works with to get back on their feet, she said. “It doesn’t matter whether you prevailed in court. It doesn’t matter if the landlord drops the case. Once the filing is made, your record is tagged.”

Many organizations providing assistance point to funding issues as a primary challenge.

Jenny Larson, executive director of Three Rivers Community Action, said the organization’s current level of funding is not enough and that in a fiscal quarter the funds deplete within a week. The other 11 weeks the staff tries to connect people to alternative resources.

“We are ready and willing to administer these funds,” she said.

Several Republicans stressed the importance of inventory, particularly with such large sums of money potentially going towards housing already and $85 million reportedly in unspent aid from the state’s housing agency.

Rep. Jeff Dotseth (R-Kettle River) said just spending money on these types of programs, instead of focusing on root causes, could create an even bigger problem.

Likewise, Rep. Brian Johnson (R-Cambridge), who unsuccessfully offered an amendment to cut the appropriation nearly in half, believes the shortage of units needs to be addressed, along with reducing the costs associated with renting, building a home and buying one.