The bill modifies the payment provisions of the state rental assistance program as outlined in Minnesota Statutes 2024, section 462A.2095. It establishes a state rent assistance account within the housing development fund, with funds being distributed directly by the commissioner of revenue to program administrators rather than through grants from the agency. Additionally, the definition of "eligible household" is refined to exclude those receiving federal tenant-based or project-based assistance under Section 8 of the United States Housing Act of 1937. The requirement for annual recertification of eligibility has been removed, streamlining the process for households receiving assistance.

Furthermore, the bill changes the funding structure for program administrators, specifying that those administering federal assistance will be funded directly by the commissioner of revenue, while others will receive funding through the agency. It emphasizes the need for rental assistance to be provided based on the most recent American Community Survey data, ensuring equitable distribution across counties. The bill also allows program administrators to use existing or alternative procedures to administer the program, with a focus on reaching households in need and incentivizing landlord participation. Lastly, it sets limits on the amount of rent assistance that can be provided, ensuring it does not exceed the difference between 30 percent of the tenant's gross income and 120 percent of the payment standard established by local public housing authorities.

Statutes affected:
Introduction: 462A.2095