Habitat Minnesota’s 2025 Housing Wins & Work Ahead
Investing in Homeownership
Habitat for Humanity of Minnesota (Habitat Minnesota) has been busy advocating for policies that expand homeownership opportunities and reduce barriers to building more homes across the state. We know that homeownership is key to building strong communities, but for too many Minnesotans, it remains out of reach.
Habitat Minnesota prioritizes public policy that advances systems change work and aims to strengthen the path to stable, affordable homeownership for Minnesotans. These priorities include:
- Increasing the affordable homeownership supply
- Ensuring equitable homeownership access
- Improving long-term homeownership security
This session, we saw momentum on all three fronts. You can read more about Habitat Minnesota’s 2025 Legislative Agenda here, find our full 2025 Housing Policy and Advocacy Summary here, and read the general summary of our advocacy and session results below.
Increasing the affordable homeownership supply
PASSED: Workforce & Affordable Homeownership Development
Funding increased from $500,000 to $2.5 million over FY26/27
One of Habitat Minnesota’s top priorities is increasing the affordable homeownership supply. The Workforce & Affordable Homeownership Development Program supports affordable homeownership opportunities across the state, serving low- to moderate-income households. Crucially, it’s the only state program that specifically focuses on creating new affordable homeownership units:
Chad Bouley, Executive Director of Central Minnesota Habitat for Humanity, testified in support of sustained funding for this program, emphasizing the urgent need for funding that directly supports affordable home construction.
“The need in Central Minnesota is immense… Historically, we have built two homes per year. This year we will complete 5… We have over 500 families waiting for us to reopen applications. This funding will allow us to go from 2-5 homes per year to as many as 25 or more.”
Thank you to advocates and Chief Authors, Senator Aric Putnam and Representative Matt Norris!
PASSED: Greater Minnesota Housing Infrastructure Grant Program
$2 million appropriated in FY26/27
Expanding housing in Greater Minnesota requires not just land, but
also housing infrastructure, such as roads, water, and sewer systems. That’s why we’re advocating for continued investments in the Greater Minnesota Housing Infrastructure grant program.
Bob Hawley, Executive Director of Goodhue County Habitat for Humanity, testified in support of these investments, sharing how infrastructure costs often prevent rural communities from developing new housing.
Bob highlighted Hope Heights, a planned 26-home development in Red Wing, MN, where Goodhue County Habitat is collaborating with the city. A program like the Greater Minnesota Housing Infrastructure grants would help Greater MN cities cover up to 50% of the infrastructure costs, making the project a reality for local families.
Thank you to advocates and Chief Authors, Chair Lindsey Port, Co-Chair Michael Howard, and Senator Grant Hauschild!
NOT PASSED: “Yes to Homes” Reducing Barriers to Building More Homes
Expanding the types of homes that can be built opens doors for more families to achieve homeownership and helps us serve Minnesotans in every phase of
life. That inspired Habitat Minnesota to be a part of Yes to Homes, a large and diverse coalition united by the common goal of creating statewide housing policy that focuses on meaningfully expanding development to increase the variety and supply of housing options.
Brittany Hennesy, Executive Director of Habitat for Humanity serving Winona County, testified at the Housing and Homelessness Prevention Committee about the need in Winona County and the impact changes in housing policy would have in their community.
“It is my dream to be able to build more with the land we are granted to serve more families in creative ways, and we cannot move forward without zoning reform that supports innovative housing solutions.”
We were disappointed to see the bills voted down in the Senate State & Local Government committee. We look forward to continued advocacy on efforts to advance systems change work and increase access to ownership.
Thank you to the diverse coalition and the bipartisan housing champions in the legislature who brought forward these meaningful reforms!
Ensuring equitable homeownership access
PASSED: First-Generation Down Payment Assistance
$2 million appropriated in FY26/27
One of the most significant barriers to homeownership is the lack of generational wealth, especially for first-generation homebuyers. The First-Generation Down Payment Assistance program provides financial support to families purchasing their first home, helping to reduce racial and economic disparities in homeownership.
Habitat Minnesota board member, Kasey Kier, and Habitat for Humanity of Minnesota’s Advocacy Director, Jeru Gobeze, testified on how this program would open doors for homebuyers who have historically been excluded from homeownership opportunities.
Thank you to advocates and Chief Authors, Senator Oumou Verbeten and Representative Esther Agbaje!
Improving long-term homeownership security
Passed: Stabilizing Minnesota’s Insurance Market
Access to stable insurance coverage is a critical foundation for strong, resilient communities across the state. The increasing cost of insurance has become an alarming burden, with Minnesota homeowners paying 38% more for home insurance than the national average. Addressing this will require collaboration between policymakers, insurers, housing providers, and other key stakeholders to study the issue and explore solutions to support insurance affordability and a more stable sector.
Kevin Pelkey, Executive Director of Lakes Area Habitat for Humanity, testified in support of this bill in the House Commerce, Finance & Policy committee.
Thank you to advocates and Chief Authors, Chair Lindsey Port and Representative Steve Elkins!
Not Passed: Homeowner Association Reform
This would have provided a path for HOAs to better serve Minnesotans and help homeowners access safe and affordable housing.
This would have supported long-term homeownership security by creating caps on late fines and fees, prohibiting the ability of an association to enforce
a lien against the unit owner for unpaid fines, prohibiting the requirement or incentivization to create HOAs, and more.
Jenny Sandford, Homeowner Engagement Manager at Twin Cities Habitat for Humanity, testified in support of this in the House Housing Finance & Policy committee.
Thank you to advocates and Chief Authors, Senator Eric Lucero and Representative Kristin Bahner!
Habitat Minnesota will continue to advocate for policies that help Minnesotans retain their homes, benefiting family stability, community well-being, and our economy.
Strengthening Our Advocacy
Habitat for Humanity of Minnesota is proud to have a role in advancing legi that will directly impact families across the state. Some of our priorities did not pass this year, but we remain committed to pushing forward policies that dismantle systemic barriers to homeownership.
Stable, affordable homeownership transforms lives, and it takes consistent, collective advocacy to make it possible. As we look ahead, Habitat Minnesota will continue to work alongside our partners, elected officials, and local communities to ensure that every Minnesotan has a place to call home.
📢 Stay Connected – Stay up to date on housing and homeownership policy by signing up for our advocacy updates: https://habitatminnesota.org/advocacy/