In This Issue:
- Metro Cities Annual Meeting is April 15th – Please Join Us!
- Legislature Returns from Break
- Senate Taxes Hears LAHA Timeline Extension Bill
- Bill on Data Center NDA’s with Municipalities Stalls in House
- House Committee Hears Bill Seeking Constitutional Amendment to Fund Housing
- House Committee Hears Proposal for Business Recovery Loan Program
- 2027 Housing Tax Credit Distribution Estimates Available
- Minnesota Housing’s 2026 Single Family RFP is Now Open
- Regional and Local Planning Foundations Webinar Series and Additional Webinar
- Save the Date! Training on Transportation Funding Opportunities
- Bills of Note
Metro Cities Annual Meeting is April 15th – Please Join Us!
Please plan to attend Metro Cities’ Annual Meeting next Wednesday, April 15th at the Roseville Oval Banquet Room! The meeting begins at 5:00 pm and features a social hour with hors d’oeuvres, a guest speaker and brief business meeting to elect new Board officers and Board members. Our guest speaker is Trisha Kirk, Managing Director of the Guthrie Theater, who will speak to the history of the Guthrie, its programs, facility, and role as a state and regional asset. This is a fun event, and a great opportunity to mingle with city officials from across the region. Please join us! RSVP to Jennifer Dorn at [email protected].
Legislature Returns from Break
Legislators returned to work on Tuesday, following an Easter/Passover/Eid recess the previous week, and this week was quickly filled by committee hearings and floor sessions. Floor debates included proposals to suspend rules to allow certain bills to be brought for immediate floor debate. The third committee deadline, for finance/appropriations bills, is next Friday. There are no deadlines for tax or bonding bills.
With five weeks remaining in the session and policy deadlines past, attention turns to finance and appropriations bills, tax and bonding bills. This is not a budget setting year, but the Governor has proposed a supplemental budget (highlights were included in Metro Cities’ last newsletter) and legislative finance committees are expected to consider various spending and/or revenue proposals in their jurisdictions.
Please stay tuned for additional information and updates as the session proceeds.
Senate Taxes Hears LAHA Timeline Extension Bill
On Thursday, the Senate Tax Committee heard SF 4394 - Port, a bill which provides modifications to the Local Affordable Housing Aid (LAHA) program and Statewide Affordable Housing Aid (SAHA) program. Metro Cities submitted a letter in support of the bill that provides two additional years to spend LAHA dollars on affordable housing projects, from four to six years. In committee, the bill was amended to remove the tax provisions and was sent back to the Senate Housing and Homelessness Prevention Committee. The tax provisions, which include the additional time to spend LAHA funds, will be laid over in the Senate Tax committee for consideration in an omnibus Senate Tax bill. Contact Ania McDonnell at [email protected] with any questions.
Bill on Data Center NDA’s with Municipalities Stalls in House
On Thursday, the House Judiciary Committee heard HF 4077 – Greenman, which restricts cities and elected officials from entering into an NDA for the development of land. Although the bill authors mostly focused on data centers, some members of the committee expressed concern that the bill was overly broad and could slow other developments with sensitive data. The Senate companion bill, SF 4379 – Maye Quade, was given a second reading on Tuesday in the Senate floor and awaits further floor action.
House Committee Hears Bill Seeking Constitutional Amendment to Fund Housing
On Wednesday, the House Housing Finance and Policy Committee heard HF 3279- Howard, a bill which would propose seeking an amendment to the Minnesota Constitution for the purposes of increasing the state sales and use tax rate by three-eighths of one percent for the purposes of funding housing programs.
Metro Cities’ policies oppose funding state programs through constitutional amendments as they limit flexibility by the Legislature and local governments in responding to unanticipated fiscal needs and fluctuating economic conditions, and the association submitted a letter to this effect. Several members expressed a range of comments and concerns on the proposal. The bill was laid over in committee.
The committee also heard HF 1879 – Kozlowski this week, which provides $2 million in funding for the Homeownership Education, Counseling, and Training Program (HECAT). Metro Cities submitted a letter citing support for the program in assisting to help avoid foreclosures, improve homeownership rates, and support the financial wellness of future homeowners. The bill was laid over for possible inclusion in an omnibus Housing finance bill. Contact Ania McDonnell at [email protected] with any questions.
House Committee Hears Proposal for Business Recovery Loan Program
This week, the House Workforce, Labor, and Economic Development Finance and Policy Committee heard HF 4477 – Frazier, a bill which creates a business recovery loan program to support businesses impacted as a result of federal immigration enforcement. Multiple metropolitan area cities testified in support of the bill, including Mayor Deshler of Crystal, Mayor Her of St. Paul, and Mayor Frey of Minneapolis. The bill was amended in committee to reflect feedback from small businesses and community organizations. The bill was laid over. Contact Ania McDonnell at [email protected] with any questions.
2027 Housing Tax Credit Distribution Estimates Available
Minnesota Housing has released the initial estimates of the 2027 Distribution of 9% Housing Tax Credits in Minnesota. The Low-Income Housing Tax Credit program awards and allocates federal housing tax credits to owners of qualified affordable rental housing projects. The tax credits offer a 10-year reduction in tax liability and are sold to investors in exchange for capital to build eligible affordable rental housing units. You can view the distribution estimates for 2027 HERE, and visit the housing tax credits web page HERE. The 2027 estimates document represents an estimate of 9% HTCs expected to be available in 2027. The amounts are calculated with the population of Minnesota and a per capita credit volume amount and are subject to change. 9% Housing Tax Credits are allocated twice a year through a competitive process.
Contact Ania McDonnell at [email protected] with any questions.
Minnesota Housing’s 2026 Single Family RFP is Now Open
Minnesota Housing’s 2026 Single Family Request for Proposals (RFP) is now open for applications. The Single-Family RFP is a competitive process to support a variety of homeownership activities. The goal of the program is to increase the supply of affordable, owner-occupied, single-family housing and maintaining the safety and habitability of existing owner-occupied single-family housing. Applications are due for this program on July 9th at noon. Learn more at the 2026 Single Family RFP Information session on Tuesday, April 21st a 1:00 pm. Find information about the program and apply HERE.
Regional and Local Planning Foundations Webinar Series and Additional Webinar
Metro Cities is hosting four webinars with Metropolitan Council staff on local comprehensive planning and its context within a regional framework. They are open to all elected officials and staff and geared toward a broad audience. The next webinar is Thursday, May 7th from 12:00 – 1:00 pm. An additional webinar has been added for June, with more information to follow. If you have not yet registered and would like to attend, please email Jennifer Dorn at [email protected]. Details for the next two webinars are below:
-Technical Assistance for Comprehensive Planning: May 7, 12:00-1:00 pm
-Understanding Land Use Review at the Council: June 11, 12:00-1:00 pm
Please join us if you can!
Save the Date! Training on Transportation Funding Opportunities
Metropolitan Council staff are hosting a training on the changes made to the 2026 Regional Solicitation and 2026 Active Transportation solicitation before the call for projects occurs later this Spring.
As part of this training Metropolitan Council staff will:
- Discuss changes made for this round of the Regional Solicitation.
- Walk through application requirements for Active Transportation dollars (made available via the regional sales tax revenue directed to the TAB).
- Answer questions from attendees so that cities are prepared to take advantage of both funding opportunities.
This training session will be offered in a hybrid format, in-person at Metro Cities’ office (the League of Minnesota Cities building) and via Zoom on Friday, April 24 from 10AM until 11:30AM. Any interested city officials or staff are welcome to attend. To register, email Jennifer Dorn at [email protected].
Contact Mike Lund at [email protected] or 651-215-4003 with any questions.
Bills of Note
HF 4795, Anderson: A bill for an act relating to transportation; taxation; modifying motor vehicle registration tax; amending Minnesota Statutes 2025 Supplement, section 168.013, subdivision.
HF 4797, Harder/SF 4994, Gruenhagen: Bill authorizes online publication when no qualified newspaper is available.
HF 4807, Swedzinski: Bill preempts cities from regulating aggregate mining or production.
HF 4809, West/SF 4756, Kreun: A bill for an act relating to taxation; property; establishing levy limits for local governmental units; amending Minnesota Statutes 2024, section 275.71, subdivisions 2, 4.
HF 4810, Stier/SF 4990, Seeberger: Bill eliminates requirement for counties to fund ARMER network expansion; establishes state funding for public safety radio communications infrastructure; and establishes framework for collaboration and interoperability across law enforcement jurisdictions.
HF 4814, Huot/SF 4548, Hauschild: Bill bans local elected officials from entering certain NDAs.
HF 4816, Norris/SF 4944, Dibble: Bill modifies the organization and operation of housing cooperatives, addressing member violations, permits a purchaser to cancel, requiring insurance and upkeep, among other provisions.
HF 4830, Hollins: Bill prohibits local units of government and law enforcement agencies from acquiring military-grade weapons from the Pentagon’s 1033 program.
HF 4835, Agbaje/SF 4105, Boldon: Bill provides tenants with a right to repair violations in a residential rental unit and permits a tenant to make deductions from rent.
HF 4845, Hollins: Bill establishes a new 5th tier individual income tax rate and increases LGA appropriation.
HF 4850, Virnig: A bill for an act relating to health; appropriating money for a grant to study lead exposure in Dakota County.
HF 4861, Warwas: Bill increases local government aid and county program aid.
HF 4869, Coulter: Bill establishes a state general levy for certain residential homestead property and modifies the city aid formula for certain cities.
HF 4871, Jordan/SF 5038, Dibble: A bill for an act relating to taxation; aids to local governments; establishing a onetime aid to reimburse certain city costs of federal enforcement actions; appropriating money.
HF 4874, Hansen/SF 5030, Hoffman: A bill for an act relating to electric cooperatives and municipal utilities; clarifying the recovery of certain fixed costs with respect to net metered facilities; allowing meter aggregation for electric cooperatives and municipal utilities; clarifying commission authority with respect to electric cooperative practices; improving member access to cooperative documents and meetings; requiring electronic voting and voting by mail for cooperative board directors; amending Minnesota Statutes 2024, sections 216B.164, subdivisions 3, 4a; 216B.17, subdivision 6a; 308A.327.
HF 4907, Anderson, P.E.: Bill modifies motor vehicle registration tax.
HF 4915, Zeleznikar/SF 5062, Bahr: Bill bans local elected officials from entering certain NDAs.
HF 4925, Igo/SF 2434, Draheim: Bill modifies certain expenditure provisions of the housing development fund and repeals certain allowed expenditures for the Minnesota Housing Finance Agency.
HF 4926, Igo: Bill authorizes the issuance of housing infrastructure bonds and appropriates funds.
HF 4933, Koznick: Bill requires notice to the legislature regarding certain LRT project changes.
SF 4943, Holmstrom: Bill authorizes a motor vehicle registration tax holiday for one year.
SF 4954, Lang/HF 4759, Hudson: Bill proposes a constitutional amendment prohibiting unfunded mandates by the state to local governments.
SF 4956, Clark/HF 4597, Witte: Bill appropriates money for a unified 911 center awareness platform that allows 911 centers to communicate and coordinate emergency response.
SF 4980, Boldon: Bill prohibits penalties for certain uses of public land by homeless individuals and provides an affirmative defense in criminal proceedings.
SF 4992, Westlin: Bill limits state and local government participation in federal civil immigration enforcement efforts.
SF 5023, Hawj/HF 4886, Lee, K.: Bill creates a road construction business mitigation grant program and requires a report.
SF 5034, Pha: Bill appropriates funding for an analysis of the statewide economic impact of increased immigration enforcement in Minnesota and requires a report.
SF 5050, Westrom: Bill establishes the SAVE Minnesota Act, requires voter ID and provisional ballots among other provisions.
SF 5056, Jasinski: Bill establishes a temporary moratorium on the imposition of the gas tax.
SF 5059, Dornink: Bill temporarily modifies the restrictions on use of Minnesota investment fund local government loan repayment funds.
SF 5067, Latz: Bill creates various housing funds and increases the sales and use tax rate by three-eighths of one percent and appropriates funds for deposit in the funds.