Homeless prevention program to get boost

May 21—MANKATO — A funding increase approved by the Minnesota Legislature is set to help more south-central Minnesotans avoid homelessness.

The DFL-controlled Legislature passed a $50 million boost to the state's Family Homeless Prevention and Assistance Program, or FHPAP, this session, followed by Gov. Tim Walz signing it into law. Additional funding on top of the $50 million could be on the way later, but agencies are at least anticipating the first allotments to come as soon as June.

The impact will be more assistance going to south-central Minnesota families at risk for homelessness or in homelessness, said Judd Schultz, housing services director at Minnesota Valley Action Council.

MVAC serves as the program's administrator for south-central Minnesota's nine counties. Before the expanded funds came through, MVAC anticipated serving about 200 families in the region through FHPAP.

The total "definitely will" rise now, Schultz said. "There's going to be a whole lot of money over the next two to three years to do this work."

Of the 200 families covered under pre-expansion funding levels, about 130 would've received homelessness prevention assistance and 70 would've received rapid rehousing assistance. The former keeps people in housing before they become homeless, while the latter helps new families in homelessness quickly find housing again.

MVAC recently submitted a $1.13 million ask from the FHPAP program, although it and other agencies are amending requests to take the expanded funds into account. This funding would cover the two-year biennium starting in October, separate from about $875,000 in fast-track funding requested for June.

The statewide impact of the $50 million expansion will be about 20,000 additional families served, stated Jennifer Leimaile Ho, Minnesota Housing commissioner, in a news release. Minnesota Housing manages the program at the state level.

One example of how the funds are used is paying a family's overdue rent. By keeping them in a residence rather than having them become homeless, the idea is they'll face fewer barriers finding a more sustainable living situation.

And the program isn't merely about paying their rent, Schultz said, nor do people receive assistance forever to live in a unit they otherwise couldn't afford.

"We're educating clients about their housing choices and having frank conversations about the reality of their situation," he said. "While doing this, we're advocating on their behalf."

Keeping up with needs has been an uphill battle for for the program as eviction rates ticked up coming out of the COVID-19 pandemic's moratorium. Minnesota Housing estimated the current program's funding levels only covered about 10% of the people eligible for it — residents need to be at or below 200% of the federal poverty guidelines to qualify.

Because of the high demand, funds tended to run out quickly, said Andrew Pietsch, Blue Earth County's regional housing supports supervisor. Pietsch serves on the region's FHPAP advisory committee.

"I know regionally we continue to hear there's a continued high need and requests from families who are behind on rent," he said.

Having funds come in as soon as June, and then higher allocations for the next biennium, will make a big impact, he added.

"This one-time funding is going to allow us and MVAC to serve people who we've been having to say, 'We don't have money,'" he said.

Follow Brian Arola @BrianArola

Follow Brian Arola @BrianArola