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Impact By State

Minnesota

Overview

Like many other parts of the country, Minnesota's growth has resulted in significant housing affordability challenges. Combatting housing affordability issues in the state will require holistic solutions that address the needs of all Minnesota residents.

Minnesota has seen a sharp population increase, with 5.8% growth since 2010.

More than 642,700 Minnesotans call an apartment home, with demand on the rise.

62% of low-income renters spend more than half of their income on housing.

Between now and 2030, Minnesota will need to build 5,435 new apartment homes each year to keep up with demand.

Legal Landscape

Legal Landscape

The state of Minnesota preempts local municipalities from implementing rent control. According to Minnesota law, “No statutory or home rule charter city, county, or town may adopt or renew by ordinance or otherwise any law to control rents on private residential property.”

Minnesota
CONTINUE PREEMPTION

Rent control is an outdated concept. It benefits the very few—and not necessarily those in greatest need—at the expense of the larger society.

REJECT PRICE CONTROLS

It is important for lawmakers to pursue alternatives such as voucher-based rental assistance for those in greater need to better address housing affordability.

Alternative Approaches

Many states have adopted programs and initiatives to tackle the affordability crisis. In Minnesota, policymakers and the housing industry have made concerted efforts to address the problem. Examples include:

Bridges Program

The Bridges Program provides a rental subsidy to persons with serious and persistent mental illness and who are experiencing long-term homelessness. Eligible households must pay more than 30% of their gross income on rent and must be on a waiting list for permanent housing subsidies. Length of time of assistance depends on how quickly the permanent subsidized housing is available. Approximately 500 households receive assistance each month.

Family Homeless Prevention and Assistance Program

The Family Homeless Prevention and Assistance Program (FHPAP) provides short-term assistance to people who are homeless or who are at risk of becoming homeless. For those at risk of homelessness, the assistance generally takes the form of payments to cover rent, mortgage, or utility costs to prevent foreclosure or eviction. FHPAP is administered by the Minnesota Housing Finance Agency.

Minnesota Housing Trust Fund

The Minnesota Housing Trust Fund (HTF) provides capital loans and grants to finance the construction and rehabilitation of multifamily rental units. Funding priority is given to housing proposals serving extremely low-income households, and proposals serving households experiencing long-term homelessness.

Resources

Useful information to help inform and guide the development of viable solutions to the housing affordability crisis.

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