SF4971

Emergency shelter facility grant program establishment
Legislative Session 94 (2025-2026)

Related bill: HF4736

AI Generated Summary

Purpose

  • Establish a capital investment program to create and support emergency shelter facilities for individuals and families experiencing homelessness in Minnesota.

What the bill would create

  • Two grant funding accounts to support emergency shelter facilities:
    • One in the general fund.
    • One in the bond proceeds fund.
  • Grants awarded by the commissioner (Department of Human Services) to eligible projects for emergency shelter facilities.

Eligible applicants and facilities

  • Eligible applicants include:
    • Tribal governments.
    • Not-for-profit corporations under section 501(c)(3) of the Internal Revenue Code.
    • Statutory or home rule charter cities.
    • Counties.
    • Housing and redevelopment authorities under section 469.003.
  • An emergency shelter facility is a place that provides a safe, sanitary, accessible, and suitable shelter for people experiencing homelessness, whether shelters operate day, night, or both.

Project criteria and priorities

  • The commissioner must prioritize projects that:
    • Add new emergency shelter facilities or expand options.
    • Renovate existing facilities to operate as emergency shelters.
    • Address deferred maintenance or repair needs, or replace failing mechanical, electrical, and safety systems.
    • Acquire and construct new emergency shelter facilities.
    • Improve safety, sanitation, accessibility, and habitability of existing facilities, including major system improvements.
  • Specific emphasis on:
    • Renovating existing facilities not currently operating as emergency shelters.
    • Major projects that fix deferred maintenance or safety system failures.

Eligible uses of grant money

  • Grants may cover 100% of total project capital expenditures or a specified project phase, up to $1,000,000 per project.
  • All projects funded must meet applicable state and local building codes at project completion.

Leasing and management

  • Eligible recipients may enter into a lease or management agreement to operate the shelter, subject to section 16A.695.

Competitive process and geographic focus

  • A competitive request-for-proposal (RFP) process must be used to identify projects and eligible applicants statewide.
  • At least 40% of the appropriation must be awarded to projects located in Greater Minnesota.
  • If there aren’t enough eligible requests from Greater Minnesota to meet the 40% target, the remaining funds may go to other eligible projects.
  • For new emergency shelter facilities funded through acquisition and construction, priority goes to projects where the applicant provides at least 10% of the total project funding.

Funding sources and limits

  • Proceeds from state general obligation bonds may be used only for grants to:
    • Statutory or home rule charter cities.
    • Counties.
    • Housing and redevelopment authorities under section 469.003.
  • General fund appropriations may be used for grants to:
    • Tribal governments.
    • Not-for-profit corporations under section 501(c)(3).
    • Statutory or home rule charter cities.
    • Counties.
    • Housing and redevelopment authorities under section 469.003.
  • Funds are available until encumbered or spent, subject to section 16A.642.

Related requirements

  • Some aspects reference existing law for governance and administration, including eligibility and oversight provisions tied to the entities listed above.

Significance

  • Creates a targeted state program to expand and improve emergency shelter capacity.
  • Establishes a clear funding framework, eligibility rules, project criteria, and geographic priorities to guide investments.

Relevant Terms - emergency shelter facility - grants - eligible applicant - Tribal government - not-for-profit corporation - 501(c)(3) - general fund - bond proceeds fund - capital expenditures - deferred maintenance - mechanical systems - electrical systems - safety systems - acquisition and construction - renovation - safety, sanitation, accessibility, habitability - state and local building codes - lease or management agreement - competitive request for proposal (RFP) - Greater Minnesota - housing and redevelopment authority - section 469.003 - section 16A.695 - section 16A.642 - statutory or home rule charter cities - counties

Bill text versions

Showing the most recent version. There are  1  total versions. You must be logged in  to view additional bill text versions.

Past committee meetings

You must be logged in  to view 2  past legislative committee meetings.

Actions

DateChamberWhereTypeNameCommittee Name
April 07, 2026SenateActionIntroduction and first reading
April 07, 2026SenateActionReferred toCapital Investment
April 09, 2026SenateActionAuthor added
SenateActionSee

Citations

You must be logged in  to view citations.

Progress through the legislative process

17%
In Committee
Loading…