Homes for All and the Minnesota Legislature From

Homes for All and the Minnesota Legislature From Ideas to Implementation

Preview • • • Minnesota Legislature 101 The Legislative Process Homes for All, Est. 2012 The Housing Continuum Minnesota’s Housing Funding Picture Questions/Discussion

• • • The Minnesota Legislature 101 201 Members (134 House, 67 Senate) 67 Districts (A-side, B-side) – House Members: About 35, 000 represented – Senate Members: About 70, 000 represented 1973: Party designations House: GOP Majority (73 GOP, 61 DFL) – Speaker of the House: Kurt Daudt, Crown – House Majority Leader: Joyce Peppin, Rogers – House Minority Leader: Paul Thissen, Minneapolis – Several assistant leaders/whips in each caucus – 90 men (54 GOP, 36 DFL), 44 women (18 GOP, 26 DFL) Senate: DFL Majority (38 DFL, 28 GOP; 1 vacant) – Majority Leader: Tom Bakk, Cook – President of the Senate: Sandy Pappas, St. Paul – Minority Leader: David Hann, Eden Prairie – Several assistant leaders/whips in each caucus – 43 Men (20 GOP, 23 DFL), 23 Women (8 GOP, 15 DFL)

The Minnesota Legislature 101: Continued • “Part time” • Base salary of $31, 000/year (plus per diem and housing allowance) – 2016 Constitutional Amendment Proposal • House members: Share staff, hired by caucus • Senate members: Staff hired by members • Most listed occupations: Small business owners and teachers • Frequent change (House Majority) • Many retirements in both chambers (open seats) • Next redistricting: 2020

Minnesota’s Legislative Bills Process Laws! Legislature

Minnesota’s Legislative Process

• • • 2016 -17 Important Dates/Events November 8, 2016: General Election First week in December: Budget Forecast January 3, 2017: 90 th Legislature Commences Third week in January: Governor’s Budget First week in March: Budget Forecast (Supplemental Budget follows) March 14, 2017: Homeless Day on the Hill Week of April 10: Easter/Passover Break Last week in March/April: Committee Deadlines May 22, 2017: Session ends

Homes for All – Since 2012 • Approaching $200 m in new investment for programs and housing preservation/development (would have been $250 m after special session) • Nearly 200 organizational endorsers • Consistent bipartisan support • Strong partnerships with state agencies • Emphasis on balance/incremental progress • Long-term vision?

Homes for All: Agenda Development

Homes for All: Agenda Development (Continued)

Homes for All: Agenda Development (Continued)

State Housing Funding: Dividing the Pie • Competitive RFPs through DHS and MHFA • Usually 2 -year cycle • Where it goes and what it does – MCH members – Direct services for individuals/households (5, 000+ since 2012) – Preserving/Developing Affordable Housing – Rental Assistance – Prevention – Administrative expenses • Can we improve the process? How?

Minnesota’s Housing Continuum to Prevent and End Homelessness Homelessne ss Prevention Rapid Re-Housing Permanent Supportive Housing Affordable Rental Housing (Income. Targeted) Affordable Homeownership (Equity Capped) MINNESOTA’S HOUSING CONTINUUM Shelter (Emergency, Domestic Violence, Safe Harbor) Transitional Housing Affordable Rental Housing (Voucher Program) Market Rate Rental Housing Market Rate Homeownership

Program Funding Levels – MHFA ($96. 934 m) MHFA Programs Family Homeless Prevention Assistance Fund (FHPAP) Purpose Direct assistance and services to households at risk of losing housing and transitioning out of homelessness 16 -17 18 -19 Appropriation Appropriatio n Since 2013 $17. 038 million +$2. 108 million Matching grant program for financing of affordable housing development statewide $27. 85 million $25. 85 million +$11. 94 million Housing Trust Fund Rental assistance for households previously homeless $24. 942 million $22. 942 million +$3. 382 million Preservation (PARIF) Preservation loans for subsidized rental housing $8. 436 million - $6. 19 million $6. 275 million $7. 486 million +$2. 588 million $1. 582 million $1. 714 million +$212 k Challenge Fund Rental Rehab Deferred Loan Pilot No interest loans for the rehabilitation of existing rental properties in Greater Minnesota Homebuyer Education (HECAT) Homebuyer/homeowner education counseling and training services Capacity Building Regional coordination for Continuums of Care, leverages federal funding $750, 000 +$500 k Homeowner Assistance Fund Down payment and closing cost assistance for first-time homebuyers $1. 77 million +$176 k $8. 176 million +$2. 9 million $2. 772 million +$921 k Bridges Rehabilitation Loan Program Rental assistance for persons with serious mental illness who are Section 8 eligible/waitlisted Funds low-income single family projects that affect the safety, habitability, energy efficiency or accessibility of single family housing

Program Funding Levels – DHS ($42. 205 m) DHS Programs (Division) Purpose 16 -17 Appropriation 18 -19 Appropriation Since 2013 $11. 7 million $13. 7 million +$3. 8 m $6. 5 million +$500 k Long Term Homeless Supportive Services Fund (Community Living Supports) Coordinated services to maintain housing and improve self-sufficiency for Minnesotans experiencing longterm homelessness (3, 300 individuals served annually) Transitional Housing Program (OEO) Time-limited housing and services for families and individuals who have been homeless (2, 900 individuals served annually) Emergency Services Program (OEO) Services and emergency shelter for homeless Minnesotans $1. 188 million $1. 688 million +$1 m Homeless Youth Act (OEO) Housing and services for youth who are homeless or at-risk $8. 271 million $11. 171 million +$10. 933 m Housing with Supports for Adults with Serious Mental Illness (Chemical and Mental Health) Grant program for housing developers, county mental health authorities and tribes to increase the availability of supportive housing options $7. 654 million $9. 146 million +$6. 146 m

Department of Revenue – Tax Expenditures for Homeownership ($2. 6652 billion) Department of Revenue Purpose 18 -19 Expenditure Home Mortgage Interest Deduction Itemized deduction for interest paid on debt secured by a principal or second residence $559 million Property Tax Exemption – Disabled Veterans’ Homestead Exclusion in determining taxable market value for disabled veteran (more than 70%) $45. 5 million Exclusion from market value for property classified as residential homestead or the portion of an agricultural homestead consisting of house, garage, and surrounding one acre $330. 6 million Homestead Market Value Exclusion Housing Allowance for Ministers Gross income of a minister of the gospel does not include any housing allowance that is part of compensation $12. 4 million Taconite Homestead Credit Homestead property within the taconite tax relief area receives a credit against the property tax $21. 7 million Real Estate Taxes Itemized deduction is allowed for real estate taxes paid on an owner-occupied residence and any other property not used for business $348. 7 million Other Taxes Itemized deduction is allowed for specified taxes including personal property taxes paid to state and local governments $30. 1 million Capital Gains on Home Sales Exclusion from income is allowed for the capital gain from the sale of a taxpayer’s principal residence $457. 6 million Homestead Credit Refund (Property Tax Refund) Refund for homeowners for a portion of property taxes paid $859. 6 million

Minnesota State Budget: 2018 -19 Housing Expenditures $3 000 000 $2 655 200 000 $2 500 000 $2 000 000 $1 500 000 $1 000 000 $500 000 $139, 000 $0 Department of Revenue Tax DHS/MHFA Homeless Services & Expenditures on Homeowners Affordable Housing Programs

Bonding • 2012: $35. 5 million ($30 m Housing Infrastructure Bonds, $5. 5 m General Obligation Bonds) • 2014: $100 million ($80 m Housing Infrastructure Bonds, $20 m General Obligation Bonds) • 2015: $10 million Housing Infrastructure Bonds • 2016: $45 million included ($35 m Housing infrastructure Bonds, $10 m General Obligation Bonds • Total units impacted: About 9, 500

Homes for All: What’s Next? • 2017: Budget Year • Will have a bonding request • Another bold, achievable appropriations request • Exploring idea of a “pay for” (multi-year effort) • Grow the coalition by finding more unlikely partners

Questions/Comments/Concer ns?