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AGENDA RECOMMENDATION       
   Item No: 4.B.
Economic Development Authority
Meeting Date:
03/10/2025

Agenda Item:

Resolution authorizing application to the Minnesota Housing Bring It Home Rental Assistance Program Request for Proposals.

Recommendation/Action(s):

Adoption of the attached Resolution.

Summary:

Minnesota Housing has authority under Minnesota Statute 462A.2095 to establish and administer a statewide rental assistance program that provides tenant-based and project-based rental assistance and announced the availability of funding to eligible Housing Choice Voucher program administrators and Tribal Nations in the state to provide direct rental assistance under the Bring It Home Rental Assistance Program Request for Proposals.  Applications are due April 21, 2025.
 
  • To be eligible for Bring It Home Rental Assistance Program funds, the applicant must be a Program Administrator as defined in 462A.2095, Subd 2(c). Program Administrators are: Housing Choice Voucher (HCV) administrator: A Housing and Redevelopment Authority (HRA) or other local government agency or authority that administers federal tenant-based or project-based assistance under Section 8 of the United States Housing Act of 1937;
  • Tribal Entity: A Tribal government or Tribal Designated Housing Entity; or
  • Nongovernmental Organization: If there is no entity in either category above with the capacity or authority to administer the program, a nongovernmental organization determined by Minnesota Housing to have the capacity to administer the program.
Minnesota Housing will make every effort to ensure coverage of all geographies within Minnesota so that all low-income renter households have an opportunity for assistance. Program administrators may partner to deliver the rental assistance in another Service Area. If a current HCV administrator or Tribal Entity declines or is unable to operate the program within its Service Area, Minnesota Housing will notify the adjacent HCV administrators and/or Tribal Entities to determine their interest in administering the program in that Service Area. Program administrators that choose to partner with another program administrator must enter into a Memorandum of Agreement (MOA) that describes how they will work together to achieve the agreed goals and objectives. MOAs may be used to increase geographic coverage, reduce financial limitations placed on smaller housing authorities, or fill gaps by program administrators that choose not to participate in the program. The program administrator would be eligible to receive the combined Minimum Grant Awards for all Service Areas under the MOA.
 

On August 16, 2024, the EDA was allocated $728,393.00 for 60-81 rental Vouchers at a minimum level that could be provided by Minnesota Housing through their competitive application process.  The minimum grant amounts established for each Housing Choice Voucher program administrator in the state used the average Housing Assistance Payments provided by HUD and multiplied them by eligible households identified using the Census Bureau’s American Community.

This program provides grants to program administrators for the purpose of providing tenant or project-based rental assistance directly to housing providers for eligible households using already established administrative policies and procedures under the Housing Choice Voucher Program. Eligible uses under this program are Start-Up Costs, Administrative Fees and Housing Assistance Payments.
 
Start-Up Costs should be adequate to establish program policies, hire and train staff, establish waitlists and develop program procedures during the first twelve months of the program. Start-Up Costs will be covered through the initial grants with Program Administrators for the first round of funding only. The Start-Up Costs are in addition to the Bring It Home Rental Assistance Program grant proceeds used for Housing Assistance Payments and Administrative Fees.
 
Households are eligible to apply for the Bring It Home Rental Assistance Program if they:
  • Are a Minnesota resident;
  • Have an annual income of up to 50% of the area median income as determined by the United States Department of Housing and Urban Development (HUD), adjusted for family size;
  • Pay more than 30% of the household's annual income on rent;
  • Are not receiving federal tenant-based assistance under Section 8 of the United States Housing Act of 1937, as amended; and
  • Are not currently in a unit receiving project-based assistance under Section 8 of the United States Housing Act of 1937, as amended.
After initial eligibility, Program Administrators may use additional screening criteria to determine a household’s qualification and prioritization for the program using their already established administrative policies. Priority for rental assistance must be given to households with children 18 years of age and under, and annual incomes of up to 30% of the area median income.

The requested action is to approve by resolution the authorization to submit an application for the Bring it Home Rental Assistance Program with Minnesota Housing. It is anticipated that grants will be awarded in August 2025.

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