Bringing it home for families

The Owatonna Housing and Redevelopment Authority (HRA) rental voucher program got a big boost last week that will benefit families with children under age 18.

State lawmakers in 2023 authorized the Bring It Home Rental Assistance Program to provide $123 million to help Minnesota families who struggle to pay their rent every month. It will fund thousands of new vouchers for renters in the metro area, through part of a new Twin Cities sales tax, and in greater Minnesota, with state funding.

Renters whose income is 50% of the area median income (AMI) or less are eligible, with priority given to families with children who make under 30%.

Owatonna’s HRA Housing Manager Ghassan Madkour said he’s finishing up the “due diligence” paperwork for the $577,450, two-year grant. He's ready to get going and hopes to have families “leased up” in the fall, so he can start putting the funds to use when they come through in January.

“I’m glad there’s a program for families,” he said.

Program requirements, he said, will be similar to the Bridges program, which is also grant-funded through the state and serves low-income people with mental illness. The current cycle started on July 1 and ends June 30, 2027.

“Bridges is designated for homeless coming out of a facility or institution,” Madkour said, as well as others on a case-by-case basis. “The majority of our Bridges folks are single. There are very few families.”

Voucher program funds are limited, and Madkour works to spend as closely as possible to the grant amount. The HRA received $514,000 in the last grant cycle; he spent all but $956.

How vouchers work

People have to meet a number of qualifications to receive–and keep–rental assistance through voucher programs. Madkour said the tenants pay 30% of their monthly income toward rent, and the voucher covers the balance.

If someone is not working, he added, vouchers cover 100%. That’s likely to change, with the federal government expanding work requirements for those receiving food, housing, and other types of assistance.

Those seeking assistance are referred by other agencies. A five-person committee meets each month to evaluate applications and look at who has the greatest need.

The wait list for vouchers stands at around 250 right now; in June, when Madkour did an annual purge, there were 100 more. He said he asks people once a year whether they want to stay on the list.

Applicants list assets and income, provide an ID or birth certificate, undergo a criminal background check, and then go through a 90-minute orientation.

“Some have been homeless for a long time,” Madkour said. “They’re not adept at living around other people. The orientation is important.”

Tenants then have 60 days to shop for an apartment; the deadline may be extended if necessary.

Right now, Madkour said, the wait list is at a standstill while the HRA builds back a certain level of reserves required by the U.S. Department of Housing and Urban Development.

Once someone is on a voucher program, they’re “grandfathered in" even if their cost of rent increases. The percentage covered varies depending on income, but there’s also a 180-day grace period–so someone can continue receiving assistance while they’re working.

Recipients are supposed to report changes in income, but that doesn’t always happen. Eventually, though, the government catches up with them, through the IRS.

Recently, Madkour learned about a recipient who has been working since 2024. That person now has to pay back funds received through the voucher program.

“We’ll be working out a repayment program,” Madkour said.