Gov. Walz Signs $1 billion housing investment into law

(ABC 6 News) – Governor Tim Walz on Monday signed into law the $1 billion housing omnibus bill, the largest single investment in housing in state history.

The bill, House File 2335, will help construct new housing with a focus on units in Greater Minnesota, reducing homeownership disparities, and expanding access to rental assistance.

The bill allocates $1 billion to reduce disparities in housing and homeownership, improve access to affordable housing, provide rental assistance, and invest in homelessness prevention across the state.

The bill’s funding includes:

• $200 million for down payment assistance programs. This includes $150 million for first-generation down payment assistance.
• $200 million for housing infrastructure investments.
• $95 million for the Economic Development and Housing Challenge Program to support new workforce housing.  
• $40 million to support workforce housing and infrastructure in Greater Minnesota.
• $45 million for homelessness prevention in addition to the $50 million that Gov. Walz signed into law on March 31.
• Creates permanent funding for housing needs across the state.

“As one of the largest costs for families and most foundational human needs, our Administration is making a generational investment in housing,” said Gov. Walz. “Housing is central to growing our workforce and ensuring Minnesotans’ health, safety, and financial security. Whether it’s building new housing infrastructure, providing rental assistance, or ensuring homeownership is an option for all Minnesotans, this bill will have a historic impact on the quality of life in Minnesota and move us towards becoming the best state to raise a family.”

The Minnesota Senate voted 34-32 last Tuesday, May 9 on an agreement worked out by a conference committee. The day before, the Minnesota House voted 70-61 for the bill