Twin Cities Housing Tax Raises $400M Amid Slow Voucher Rollout

State officials have scaled back their rent voucher goal as few families have yet received housing assistance.

Updated on Nov. 8, 2026 in Residential

Unfinished low-rise residential building frame on a flat winter lot under a pale sky, with a stack of lumber in the foreground. — Minnesota's Twin Cities housing sales tax has raised more than $400 million, but few families have yet received state rental assistance vouchers. AI Illustration. Upload story photo >

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Do you trust local governments to spend housing sales tax money effectively?

The Twin Cities housing sales tax, created in 2023 as part of a $1 billion state housing package, has raised more than $400 million. Few families have received housing through state rental assistance vouchers, and state officials have backed off their goal of giving vouchers to more than 5,000 families.

Why it matters

Renters are struggling to find landlords willing to accept state rental assistance vouchers, and rising rents mean the voucher money will not stretch as far as projected. Construction of new affordable units largely remains years away, leaving a gap between collected funds and housing available to Minnesota families.

The Metropolitan Council Housing and Redevelopment Authority received $30 million from the state earlier this year and has housed eight families so far. Its eventual goal of roughly 900 households is far below the original statewide voucher target of more than 5,000 families, and the timeline for reaching it was not provided.

The players

Metropolitan Council Housing and Redevelopment Authority

The regional housing agency serving Hennepin, Ramsey, Anoka and Carver counties, which received state funding to administer rental assistance vouchers.

The details

Some cities and counties are using housing sales tax money for condo rehab, radon mitigation, and front yard fix-ups rather than vouchers. The state's careful rollout of the voucher program has limited how many vouchers have been used, and lawmakers have pushed to expand the housing sales tax.

2023: State lawmakers passed the $1 billion housing package and sales tax.
Earlier in 2026: The Metropolitan Council HRA received $30 million from the state.
2026: Lawmakers pushed to expand the housing sales tax.

Roadmap

The 2023 Minnesota housing package aimed to expand affordable housing through a dedicated sales tax, but its voucher program has reached far fewer families than first planned. The gap between collected revenue and housing delivered highlights the slow pace of new affordable construction across the state.

Renters seeking state rental assistance may face difficulty finding landlords willing to accept vouchers in a tight and expensive market. Families on waiting lists should expect that voucher help will be limited for now, and that new affordable units are years away.

The takeaway

Renters relying on state assistance should plan for limited availability and consider contacting local housing authorities directly about waiting lists and eligibility. Tracking how cities spend housing sales tax revenue can help residents understand where funding is going.