Minnesota NAHRO Members and the housing community received good news with the announcement of the Governor’s proposed Housing Budget for FY 2008-2009. The proposed housing budget recommended approximately a $44,000,000 increase over the last biennium for a total budget of $114,376,000. $19,000,000 of the new dollars is earmarked for base programs and the remainder as one time dollars. $15,000,000 of the proposed increase will be allocated to the Challenge Fund as one-time funds for a total allocation of $36,814,000, $2,500, 000 to PARIF for Public Housing relief on a onetime basis; and the remainder spread to other MHFA programs. The day after the Governor’s budget address Commissioner Marx attended the NAHRO Board Meeting to explain the proposal and have a dialogue with the Board.

The Governor’s proposed increase in housing funds demonstrates that he and his administration recognize the importance of affordable housing in the state and the work that all of you are doing. Many of the elements of the Housing Solutions Act are incorporated in the proposed budget. Unfortunately, the key points of the Housing Account for Leveraged Opportunities (HALO) are not. The NAHRO Board of Directors at their January meeting endorsed the Governor’s proposed Housing Budget but recommended that it be increased by at least $25,000,000 with $15,00,000 for Challenge funding and $10,000,000 for PARIF. The additional Challenge piece will be crafted to contain some of the HALO points. Additionally, the Board recommended that at least $15,000,000 of the proposed new Challenge money be put into the base. The support of the Mortgage Deed Tax by NAHRO will be dropped for this Legislative session.

Your head is probably spinning after trying to decipher the Housing Budget and your Board’s recommended changes. This was cleared if you attended the 2007 Day at the Capitol Legislative Breakfast sponsored by Minnesota NAHRO, the League of Minnesota Cities, Metro Cities and the Minnesota Housing Partnership, on March 6, 2007 at the Kelly Inn in St. Paul. A variety of speakers, including key legislators, described what is happening in regards to housing legislation. After the informative morning, members scheduled meetings with their own representatives and discussed the need for housing funding in your community.

Finally remember to get your nominations in for the Allan Anderson Award of Merit and the Housing and Community Development Achievement Award; these awards recognize individuals who have gone above and beyond to create better affordable housing in their communities. The awards will be presented at the Spring Conference.