Item Description:
title
Provide a supplemental appropriation of $490,000 for emergency rental assistance, funded with the housing sales tax (Local Affordable Housing Aid)
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Resolution:
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BE IT RESOLVED, that the 2024 revenue budget for Local Affordable Housing Aid (Fund 24) be increased by $490,000, and that an interfund transfer in the amount of $490,000 to the Human Services and Public Health department (Fund 20) be authorized; and
BE IT FURTHER RESOLVED, that the 2024 revenue and expenditure budget for the Human Services and Public Health department be increased by a $490,000 supplemental appropriation for emergency rental assistance for households at risk of eviction.
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Background:
The 93rd Minnesota Legislature approved historic levels of new state funding for housing, including a first-ever sales and use tax dedicated to affordable housing, and annual appropriations to the new Statewide Local Affordable Housing Aid fund. This fund will allocate an estimated $31 million per year to Hennepin County. County staff developed an implementation framework tailored to leverage Hennepin County's unique program-based strengths and strategies to address our deepest racial disparities in housing.
State statute outlines three categories of eligible projects for both new revenues in the Metro area:
* Emergency rental assistance <80% AMI
* Financial support to nonprofit affordable housing providers in their mission to provide safe, dignified, affordable and supportive housing
* Construction, acquisition, rehabilitation, demolition or removal of existing structures, construction financing, permanent financing, interest rate reduction, refinancing, and gap financing of affordable housing (homeownership projects <115% AMI; rental < 80% AMI)
In addition, state statute defines funding priorities for both new revenues: affordability (homeownership <80% AMI, rental < 50% AMI); reduce disparities in homeownership; reduce housing cost burden, housing instability,...
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