The housing discussion continues at the Capitol and remains a priority for many legislators on both sides of the aisle.
On Tuesday, the Senate Housing Committee heard from stakeholder groups regarding housing affordability and availability in Minnesota.
Mark Foster, vice president of legislative and political affairs for Housing First Minnesota, led the hearing, laying out the dual challenges facing Minnesota’s housing market and the urgency behind modernizing our outdated zoning structure.
“We know that the housing supply issue will not solve itself. Homes simply do not just appear. And we remain committed for the long term.”
Foster concluded his testimony, “For the sake of the next generation of homebuyers, we need to remove exclusionary roadblocks and outdated housing policies, and we need your help doing it.”
On Thursday, the Senate Housing Committee held an informational hearing on SF 536, authored by Sen. Lucero (R). This bill provides a sales and use tax exemption for residential housing construction materials. Foster testified in support of the bill.
“Homebuyers are getting squeezed and it truly is an all hands on deck moment for housing” Foster said, citing a potential cost savings of $10,000 for a 1,600 square foot home with the proposed tax exemption.
SF 536 was referred to Senate Taxes.
Also on Thursday, the Senate Labor Committee took up another bill from Sen. Lucero (R). SF 560 and the proposed amendment were presented by Sen. Dornink (R). This bill establishes a modified fee structure for residential building permits, intended to ensure that fees are proportionate to the actual cost of service, whereas fees are currently based on the valuation of a project. The bill has bipartisan support, with Sen. Hoffman (DFL) co-authoring.
Nick Erickson, senior director of housing policy for Housing First Minnesota, testified in support of the bill.
“This conversation takes place against the backdrop of a housing shortage that is the result of a system that is not able to currently deliver affordably priced homes, particularly starter homes, in Minnesota’s housing market.”
Erickson concluded, “This is trying to simplify the process and bring affordability back into the conversation as it comes to housing in Minnesota.”
SF 560 was referred to Senate Housing.
