Bill would fund emergency rent help through counties and Tribal governments

Minnesota would set aside $44 million for counties and $6 million for participating Tribal governments to provide rental assistance. Counties and participating Tribal governments would receive the money for rental assistance to eligible households. Both amounts would come from the state general fund as one-time funding for fiscal year 2026. Counties would receive shares under the existing county aid formula using population data and distribution factors used for 2026 aid. Tribal governments that chose to receive aid under the referenced existing program would receive equal shares of the $6 million. The section would take effect the day after final enactment. The commissioner of revenue would pay counties and participating Tribal governments within 15 days of that effective date.

Counties and Tribal governments would have to use the money only for rental assistance to eligible households. Households would have to live in Minnesota and be homeless or at immediate risk of homelessness. Household income would have to be at or below 200 percent of the federal poverty level, a federal income measure. The household would have to need financial help because of a housing crisis. Organizations allowed to run family homeless prevention and assistance programs under the referenced law could administer this rent help.

Counties and Tribal governments would have to spend the aid within 180 days of receiving it and return any money left over. The deadline would cover all aid counties and Tribal governments receive under this section. Unspent money would have to be returned to the commissioner of revenue and would go back to the state general fund. Each county or Tribal government's spending period would start when it receives its aid.