GMNP Update - September 12, 2025

GMNP UPDATE - SEPTEMBER 2025

Dear GMNP Members,

In legislative news, the House elected Representative Zack Stephenson from Coon Rapids as the new DFL House leader this week to replace former DFL House Speaker Melissa Hortman. Representative Stephenson served as the House Ways and Means committee co-chair this year, which was a key role setting state budget priorities. He was also one of the chief architects of legalizing cannabis in 2023 and has long pushed for consumer protection legislation. Rep. Stephenson is an attorney and Hennepin County prosecutor.

It’s also still unclear if Governor Walz will be able to deliver on a commitment to call a special session in response to the Annunciation shooting. The Governor met with legislative leaders this week to discuss the possibility, but Democrats and Republicans reported very different priorities for a potential special session. Expect conversations to continue, and potentially to ramp up after the House’s special election next week to replace former DFL House Speaker Melissa Hortman. The Minnesota Senate is controlled by Democrats by a single vote.

In GMNP business, this last month has provided many opportunities to connect with GMNP board members and potential board members. As many of you are aware, we have been transitioning GMNP to run on a calendar year. This means that our meeting schedules have also shifted to better align with the calendar year, and you should have received an invitation to our December GMNP membership meeting. This also means that I’ve been reaching out to GMNP members who might be interested in serving on our board starting in 2026. If you are a GMNP member and are not currently on the Board but might be interested in serving, feel free to reach out and have a conversation about board membership.

Best,

Darielle Dannen

Executive Director, Greater Minnesota Partnership

UPDATES

Minnesota Housing releases draft affordable housing plan

Minnesota Housing recently released its Draft Affordable Housing Plan and GMNP submitted comments during the public comment period. The draft Plan outlines the Agency’s goals and direction for the allocation of the $3.66 billion in state and federal resources that will be under Minnesota Housing’s authority in 2026-2027. The Plan’s areas of focus for 2026-2027 include:

Sustain current core work
Create a more effective housing system, including making programs more accessible and easier to use. A couple of notable plans within this area of focus are:
- The Agency is creating a new homebuying program to provide financing to buyers who are interest averse.
- The Agency has hired a Continuous Improvement Manager within the Operations Department to use human-centered design to train Agency staff to deliver better and more solutions-based services to clients.
Continue to incorporate the voice and expertise of community and people with lived experience into Minnesota Housing’s work
Address climate change:
- The Agency expects to update the Single-Family Overlay and Guide to Enterprise Green Communities and, starting in 2026, will require it to be used when developing properties funded through the Challenge Fund, Housing Infrastructure resources, and the Workforce and Affordable Homeownership program.
- In 2027, the Agency will be updating the Multifamily Overlay and Guide to Enterprise Green Communities and requiring it to be used when developing properties funded through the Consolidated RFP.

Housing Needs for 2026-2027

Minnesota Housing states that there is a 65,000-unit shortage of housing.
Higher interest rates are cited as pricing many potential homebuyers out of the market.
The Plan also flags housing units that are in need of rehabilitation as a key concern, but the Plan does not cite any data about that need, just states “hundreds of thousands of units.”
The Plan cites increased federal funding uncertainty with significant HUD layoffs but more LIHTC 9% allocations and a lower bond threshold for LIHTC 4% bonds. Minnesota Housing predicts these changes on balance will make it more challenging to tackle Minnesota’s housing problems.
Minnesota Housing also shared that higher interest rates have impacted their discretionary lending program and their proposed changes to address those impacts include:
- Reducing maximum loan amounts for down payment and closing-cost assistance
- Restricting eligibility for home improvement loans by reducing the maximum income allowed to qualify for a loan
- Pausing zero-interest Agency lending resources
- Pausing lending for manufactured home parks to become community owned

Additional Notes for 2026-2027

The State Housing Tax Credit program is flagged in the Plan as having been very popular. The Agency is now estimating that, if the program is fully subscribed, it can provide a maximum overall contribution of $11.6 million annually and would assist in the development of roughly 580 housing units. Note that this program does not receive state appropriations and relies entirely on contributions.

COMMUNITY SPOTLIGHT

Do you have recent local projects, exciting programs, or other news to share with GMNP members? Send us a short snippet so we can include it in the next newsletter!

EVENTS & ACTIVITIES

GMNP Membership Meeting - December 3 (via Zoom)

Join the GMNP for our annual membership meeting where members will hear an update on the Partnership, discuss the GMNP legislative agenda for the upcoming session, and approve the next GMNP Board of Directors and executive leadership. More agenda details to follow! Please register here to receive the meeting link.

CGMC Fall Conference - November 13-14 (Grand Rapids)

GMNP members are invited to join our sister organization, the Coalition of Greater Minnesota Cities (CGMC), for their annual Fall Conference. The two-day conference agenda will feature educational presentations, networking opportunities, and more! Click here for more info on the CGMC website.

MEMBER RESOURCES

FUNDING RESOURCES

Child Care:

Child Care Technology Grants – Grants will help licensed child care businesses access technology to improve business management efficiency.

Housing:

Community Stabilization: Distressed Multifamily Rental Building Program – RFP open now, and applications are due by noon on Wednesday November 19, 2025.

Minnesota Housing expects to approve the first funding awards for the Greater Minnesota Housing Infrastructure grant program during the October Board meeting. They also expect to release a spring RFP for the program.

Workforce Training – Available Now

Minnesota Job Skills Partnership – Partnership and Pathways Programs – DEED is soliciting grant applications for grant funding for new and incumbent worker training programs.

Adult Support Services Competitive Grant – Grants to organizations that provide support services for individuals such as job training, employment preparation, internships, financial literacy, and academic and behavioral interventions for low-performing students.

Drive for 5 Initiative – Job Placement Services – DEED is seeking proposals from qualified responders to provide services through the Drive for 5 Initiative Competitive Grants. Drive for 5 Competitive Grants must provide workforce development services, work-based learning opportunities, and job placement and retention in 1) Technology, 2) Labor, 3) The Caring Professions, 4) Manufacturing, and 5) Educational and Professional Services.

Drive for 5 Initiative – Industry Sector Training Competitive Grant – DEED is seeking proposals from qualified responders to provide services through the Drive for 5 Initiative Competitive Grants. Drive for 5 Competitive Grants must provide workforce development services, work-based learning opportunities, and job placement and retention in 1) Technology, 2) Labor, 3) The Caring Professions, 4) Manufacturing, and 5) Educational and Professional Services.

Economic Development – Available Now

Transportation Economic Development Infrastructure (TEDI) Program – Competitive grant program available to communities for road and public infrastructure projects that create jobs and support economic development.

Small Business Assistance Partnerships Program – DEED is seeking proposals from individual organizations, regional coalitions, and state-wide entrepreneurial support services providers to provide no-cost small business development and technical assistance services to entrepreneurs and small business owners, with a particular focus on underserved populations and geographies including individuals who are Black, Indigenous, people of color, veterans, people with disabilities, LGBTQ+ individuals, low-income individuals, and includes people from rural Minnesota.

Minnesota Small Business Development Center – DEED is soliciting proposals from qualified organizations to be regional service center hosts and partners of the Minnesota Small Business Development Center (MnSBDC) Network.
Contamination Cleanup and Investigation and RAP Development Grant Program – This grant program assists local communities with the investigation and cleanup of soil, soil vapor, and groundwater contamination at previously or currently developed sites.

MPCA Grants – Available Now

Greater MN waste reduction, reuse, recycling and composting grants – The MPCA has approximately $1 million for projects that increase the efficiency or effectiveness of waste reduction, reuse, recycling, or composting programs in Greater Minnesota.
Brownfield Investigation Grants – Publicly or privately owned sites are eligible for grants that can help fund initial work on brownfield sites.

Environmental Assistance Loans – Provides financial assistance to accelerate the application and/or improvement of environmental processes and technologies.

Small Business Environmental Improvement Loans – Zero-percent interest loans for small businesses for capital equipment purchases that help the company meet or exceed environmental regulations.

CONTACT & CONNECT

Darielle Dannen, Executive Director

darielle@gmnp.org

(651) 259-1908

Emma Nelson, Membership & Operations

emma@gmnp.org

(651) 259-1936

Alex Wildfang, Media & Communications

ahwildfang@flaherty-hood.com

(651) 259-1917

Visit us online at www.gmnp.org

The Greater Minnesota Partnership advocates for public policies and investments that stimulate prosperity throughout Greater Minnesota.

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