The bill modifies the payment provisions of the state rental assistance program as outlined in Minnesota Statutes 2024, section 462A.2095. It establishes the state rent assistance account as a separate account in the housing development fund, with funds to be distributed directly by the commissioner of revenue to program administrators, rather than through grants as previously stated. Additionally, the definition of "eligible household" is updated to exclude the requirement for annual recertification of eligibility, while still maintaining the income criteria for assistance.

Furthermore, the bill changes the terminology from "grants" to "funding" and specifies that program administrators will be funded directly by the commissioner of revenue or through the agency, depending on their classification. It emphasizes that rental assistance can be provided in various forms and prioritizes assistance for households with children under 18 years of age and those earning up to 30 percent of the area median income. The amount of rent assistance is also clarified, stating that it cannot exceed the difference between 30 percent of the tenant's gross income and 120 percent of the payment standard, plus utilities, as established by the local public housing authority.

Statutes affected:
Introduction: 462A.2095