HF3425

Purpose

• Provide a one-time appropriation to support the Minnesota supportive housing program (462A.42) by funding grants to Continuum of Care (CoC) program grantees connected to HUD. The goal is to assist those whose CoC contracts have expired or will expire before December 31, 2026 and who have experienced, or will experience, funding gaps. The appropriation aims to help ensure continued housing and services for people in need.

Main Provisions

• Amount and target: Allocates $1,500,000 (one-time) for grants to HUD Continuum of Care program grantees for fiscal year 2024 that meet the contract-expiration and funding-gap criteria.
• Priority by need: The agency may prioritize awards to grantees based on the level of need.
• Flexible awarding outside usual rules: The agency may award grants to existing and previous federal Continuum of Care funding recipients, notwithstanding standard application provisions in Minnesota Statutes 462A.42 subdivision 5 and procurement provisions in Minnesota Statutes section 16C.06 subdivisions 1, 2, and 6.
• Obligation timeline: The agency shall make best efforts to obligate the appropriation within 120 days of July 1, 2026.

Significant Changes to Existing Law

• Legislative amendment: Updates Laws 2023 chapter 37 article 1 section 2 subdivision 18 (as amended by Laws 2024 chapter 127 article 14 section 9) to authorize this one-time appropriation.
• Flexible awarding authority: Explicitly allows granting funds to existing and previous federal CoC recipients and bypasses certain standard application and procurement requirements for this appropriation, enabling faster or targeted distribution.
• Timeframe emphasis: Establishes an explicit goal to obligate the funds by a defined date (within 120 days after July 1, 2026).

Practical Implications

• This bill is intended to quickly bridge funding gaps for CoC grantees facing contract expirations, helping maintain housing and supportive services for individuals experiencing homelessness or housing instability.
• By relaxing some procurement and application rules, the state aims to expedite distribution to eligible recipients with the greatest need.

Relevant Terms - supportive housing program - Minnesota Statutes 462A.42 - Continuum of Care (CoC) Program - HUD (U.S. Department of Housing and Urban Development) - one-time appropriation - funding gaps - expiring contracts - fiscal year 2024 - priority based on need - existing and previous federal CoC funding recipients - procurement provisions (Minnesota Statutes 16C.06) - application provisions (Minnesota Statutes 462A.42 subdivision 5) - Laws 2023 chapter 37 - Laws 2024 chapter 127 - 120 days to obligate - July 1, 2026