State Grants Investments Local Affordable Housing

The act creates 2 state grant programs:

• The local investments in transformational affordable housing grant program (affordable housing grant program), administered by the division of housing (DOH) in the department of local affairs (department); and
• The infrastructure and strong communities grant program (strong communities grant program), administered by the division of local government (DLG) in the department.

The affordable housing grant program provides grants to local governments and nonprofit organizations to enable such entities to make investments in their communities or regions of the state in transformational affordable housing and housing related matters. The strong communities grant program provides grants to eligible local governments to enable local governments to invest in infill infrastructure projects that support affordable housing.

The strong communities grant program requires a multi-agency group, comprised of DLG, the state energy office, and the department of transportation, with the assistance of stakeholders, to develop a list of sustainable land use best practices that will accomplish the goals of the grant program and improve a local government's viability in being considered for a grant award.

The act requires both DOH and DLG to develop policies, procedures, and guidelines governing the administration of the respective grant programs. The act specifies how grant funding is to be prioritized and eligible uses of grant money awarded under the grant programs.

The act creates 2 funds in the state treasury: The local investments in transformational affordable housing fund and the infrastructure and strong communities grant program fund. The act specifies requirements pertaining to the administration of these funds.

The affordable housing grant program is initially funded by a transfer to the local investments in transformational affordable housing fund of $138 million of money from the affordable housing and home ownership cash fund that originated from the federal coronavirus state fiscal recovery fund. The strong communities grant program is initially funded by a transfer to the infrastructure and strong communities grant program fund of $40 million of money from the affordable housing and home ownership cash fund that originated from the federal coronavirus state fiscal recovery fund.

Both grant programs are subject to reporting requirements specified in the act, and both grant programs are repealed, effective December 31, 2026.

For the 2022-23 state fiscal year, $431,985 is appropriated from various sources to the governor's office to implement the act.

(Note: This summary applies to this bill as enacted.)