SF1895

This bill modifies Minnesota’s Highrise Sprinkler System Grant Program by amending a previous law (Laws 2023, chapter 37, article 2, section 10). Key provisions include:

1. Definitions:

   • An eligible building is a residential highrise where:
     • At least one occupied story is 75 feet or more above the lowest level accessible to fire department vehicles, or the building is seven or more stories tall.
       
     • At least two-thirds of its units are affordable to households earning 60% or less of the area median income (AMI), as determined by the U.S. Department of Housing and Urban Development (HUD).
       
     • Residents in these units must be paying no more than 30% of their income on rent.
       
   • A sprinkler system refers to a fire protection system (as defined under Minnesota law).

2. Grant Program & Fund Use:

   • The Minnesota Housing Finance Agency must provide grants and loans to building owners to install sprinkler systems.
     
   • The funds may also be used to relocate residents affected by sprinkler installation.
     
   • Priority is given to nonprofit applicants.
     
   • The maximum grant per building is $2 million.
     
   • Matching requirements:
     
     • Nonprofits must provide a 25% match.
       
     • For-profit organizations must provide a 50% match.
       

3. Funding Transfer & Appropriation:

   • $10 million will be transferred from the general fund to the housing development fund in fiscal year 2026 (one-time transfer).
     
   • The same $10 million will be appropriated from the housing development fund for the highrise sprinkler system program (one-time appropriation).
     

Summary:

The bill expands funding for fire safety improvements in affordable highrise buildings, prioritizing nonprofit housing providers while requiring matching contributions from for-profit owners. It allocates $10 million in fiscal year 2026 to support these efforts.