Minnesota’s economy continues to improve and employers are hiring, but the shortage of housing in Greater Minnesota is presenting an obstacle for many businesses attracting quality employees. I have heard from

local leaders and business owners about troubles enticing skilled workers to locations with inadequate housing options. Workers also struggle in these cases, when they are faced with accepting an attractive employment opportunity but having to deal with long distance commutes that stress finances and time with family.

This week my fellow colleagues and I rolled out legislation that will greatly impact and improve rural Minnesota. I have chief authored one of the proposed bills that incentivizes greater private sector investment in workforce housing. This legislation takes a three-pronged approach: first it creates the Office of Workforce Housing which will dedicate attention to workforce housing projects, which is separate from low-income and homeless housing projects. Secondly, this legislation calls for a 100 percent tax credit for small-to-medium-sized investors when they invest in the new state Workforce Housing Fund, as well as a 30 percent tax credit on income and business taxes for large investors. Finally, it will provide for Department of Employment and Economic Development grants to fill the investment gap for viable projects.

There are several reasons why there is a lack of workforce housing in rural Minnesota. For starters, local market factors can play a big role, like the risks involved when investing in a smaller community, and higher costs of development far from the metro area. Our part of the state is not alone in this problem, as many small towns all across Minnesota are trying to cope with this frustration. Significant research has been done regarding this issue and we are modeling this proposal on successful efforts in our neighboring states. We believe by providing incentives for developers and investors for housing projects targeted at middle-income households, we can ease the workforce housing shortage.

This workforce housing bill was part of a larger package of bills unveiled at a press conference at the Capitol this week that focuses on bringing jobs, workforce development and broadband to rural Minnesota. I’m proud to stand with my colleagues and support these initiatives, which include investments in career and youth counseling to help close the skills gap; an expanded jobs training program that offers Greater Minnesota businesses the flexibility they need to get new workers into skilled positions; and funding to the Border-to-Border Broadband Fund, which will spur new investments in poorly-served areas of the state. These initiatives will work to better the lives of rural Minnesotans and strengthen the communities in which they live.

If you have questions regarding these or other matters, please contact my office at 651-296-9248.

 

Dan Sparks, DFL-Austin, is the state senator for District 27.