Both Rep. Elkins and Sen. Draheim attended the MNR GA committee’s October 14th meeting, where they discussed their draft legislation, spoke with committee members about the challenges facing the housing market, and outlined how their proposal will address them.
“The discussion was informative and overwhelmingly positive,” said Paul Eger, MNR senior vice president of Government Affairs. “MNR’s GA team is looking forward to working with both legislators and other stakeholders as the bill evolves.”
Increasing access to down payment assistance
Keenly aware that lack of capital for a down payment is one of the most significant barriers to homeownership, especially for low and moderate income households and communities of color, MNR is working with a diverse group of nonprofits, lenders, and local units of government on a legislative proposal that would increase funding for down payment assistance (DPA).
“Greater availability of DPA is a key to increasing access to sustainable homeownership and reducing the racial homeownership gap,” Eger said. “We’re working to both increase funding for DPA, and improve its delivery to those who most need it.”
A 2021 report commissioned jointly by MNR and the Minnesota Homeownership Center found that with grants of $10,500 or less, nearly 112,000 low-to-moderate income renters could purchase their own homes.
MNR continues opposing policies that would increase the cost of homeownership or interfere with the use, ownership, or transfer of property
Several measures may be considered during the Session that would make it more expensive to own a home or restrict the ability to use or transfer property. MNR will oppose any actions that:
- Impose development impact fees
- Expand the sales tax to real estate services
- Implement “opportunity to purchase” policies for tenants renting in manufactured-home parks, which interfere with an owner’s ability to freely market and sell their property without unreasonable restrictions
- Enact rent control*
- Introduce unnecessary point-of-sale mandates on real estate transactions, such as well testing at property transfer
*Rent control was passed via ballot initiative in St. Paul in November 2021 and Minneapolis voters authorized the City Council to regulate rents on private residential property within the City.