The Agriculture, Rural Development, and Housing Finance committee heard a presentation from Senator Bruce Anderson (R-Buffalo) on SF3009 which provides supplemental funding to Wright County Community Action (WCCA). WCCA provides homeownership education, counseling, and training services, and until this year, has consistently received funding from Minnesota Housing and Finance (MHFA). In the past, MHFA utilized a scoring tool made available to every organization that receives funding, but despite the WCCA’s good rating, their support was cut by 41.4%.

These cuts indicate a potential inconsistency in funding. After further review, it was discovered that several agencies with scores identical or higher than previous years, had their funding cut. Many of those with lower scores were granted funding increases. This signifies that the criteria thought to be the determining factor for their funding is actually irrelevant.

The WCCA was given inadequate notice that their funding would be subject to such substantial cuts. Senator Anderson’s bill would guarantee they remain open and available to those seeking foreclosure and home buying education.

“I am disappointed by the lack of consistency, clarity, communication and budget cuts from MHFA which necessitated this supplementary grant to keep WCCA running,” said Senator Anderson. “WCCA and other agencies have proven themselves, followed the specified criteria, and were still penalized. We will review MHFA’s process to correct this unfortunate cut in funding and hold them accountable to allocate sufficient funding in the future. Funding should  correlate with the awarded scores, determined by a reliable and transparent rating system. If MHFA has altered their requirements, we will ensure they make their changes clear so agencies know what they will be graded on to receive the funding they need for future budgeting years.”