Minnesota Challenge Fund Could Get a Funding Increase

The governor’s budget includes a $10 million increase to the Minnesota Challenge Fund, a tool used by cities to develop workforce rental and single-family homes.
(Published Jan 28, 2013)

Gov. Dayton’s 2014-2015 budget proposal includes a one-time increase of $13 million toward the Minnesota Housing Finance Agency (MN Housing). Of that $13 million, there is a $10 million dollar increase toward the Minnesota Challenge Fund.

The remaining $3 million increase would go toward rental assistance programs. Of that $3 million, $2 million is proposed to go toward highly mobile children and their families to encourage better academic performance, and $1 million would go toward transitional housing for sex offenders. There was no increase in the housing-related programs that the Department of Human Services administers.

The League’s legislative policy on “New Resources for Affordable Housing” (LE-9 in the 2013 City Policies [pdf]) supports substantially increasing long-term funding for the Economic and Challenge Fund to leverage local private and public resources to develop workforce rental and single-family homes.

If your city utilizes the Challenge Fund, please share your contact information with Heather Cederholm (see right).

Homes for All Coalition
In 2012, the Legislature passed and Gov. Dayton signed a bonding bill that included $37.5 million for housing, thanks to a strong, shared voice from the Homes for All coalition. The League is a proud member of the coalition, a gathering of over 40 housing advocates and organizations that supports proven programs that stabilize families, prevent homelessness, and create workforce housing.

For 2013, Homes for All is working to ensure that communities throughout the state will benefit from quality, affordable housing options, and that Minnesota's children can grow and learn without facing the damaging effects of homelessness.

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