RIGHT, WE KNOW WE'RE NOT BUILDING ENOUGH HOMES.

>> Mary: HERE TO TALK WITH US MORE ABOUT HOUSING IS THE COMMISSIONER, JENNIFER HO.

COMMISSIONER, DO YOU LOVE HOUSING BEING PUT UP IN A BIG BIPARTISAN, BICAMERAL PRESS CONFERENCE AND CALLED A CRISIS.

IS THAT GOOD FOR YOU OR NOT?

>> WELL, I MEAN, IT'S ABSOLUTELY TRUE THAT HOUSING HAS ENJOYED BIPARTISAN SUPPORT FOR A LONG TIME.

BUT WHAT WE'VE REALLY SEEN IS IT MOVE FROM KIND OF A TIER THREE ISSUE TO A TIER ONE ISSUE AND THAT'S BECAUSE WE HAVE PEOPLE WHO NEED US TO SOLVE THE HOUSING PROBLEM IN EVERY SINGLE PART OF THE STATE.

>> Mary: SO YOU AGREE WITH THE STATS THERE?

OVER 100,000 HOUSING UNITS SHORT IN THE STATE?

>> YEAH, IT HAPPENED DURING THE HOUSING CRISIS.

WE STOPPED BUILDING, BUT WE KEPT HAVING HOUSEHOLD FORMATION OR NEW HOUSEHOLDS COMING, AND SO YOU JUST GET BEHIND ON THE NUMBERS, THEN YOU GOT A PRICE PROBLEM.

>> Mary: YOU GOT RECORD FUNDING.

IS THAT GETTING OUT THERE?

IS THAT HELPING?

WHY DO WE STILL HAVE A CRISIS AFTER A LOT OF MONEY COMING YOUR WAY?

>> WELL, WE ALWAYS KNEW THE ONE-TIME INVESTMENTS WEREN'T GOING TO FIX A LONG-TERM PROBLEM.

AND WE CAN'T MAKE HOUSES IMMEDIATELY FALL FROM THE SKY.

YOU KNOW, WE'RE WORKING ON CONSTRUCTION.

YOU KNOW, PROJECTS WITH PARTNERS AND SO IT TAKES A WHILE FOR THEM TO PULL TOGETHER ALL THEIR FINANCING AND PERMITTING AND ACTUALLY START BUILDING.

BUT WE'RE GOING TO SEE THE EFFECTS OF THAT OA OVER TIME AND WE DEFINITELY HAVE COMMITTED A LOT OF THOSE DOLLARS TO PROJECTS.

IT'S JUST THAT THE DEPARTMENT OF HOUSING TAKES TIME.

>> Mary: AND HOW MUCH DO THOSE DOLLARS CHANGE NOW WITH THINGS LIKE INFLATION AND TARIFFS?

I WAS HEARING FROM SOME BUILDERS ABOUT HOW MUCH MATERIALS COME FROM OVER THE BORDER?

>> THE PRICE OF LUMBER HAS BEEN AN ISSUE.

WE SAW THAT IN THE EARLY PANDEMIC.

SO TARIFFS ON LUMBER, ON GYPSUM, ALL THOSE THINGS AND THE PRICE OF HOUSING, HE COST OF CONSTRUCTING HOUSING IS IMPACTED BY SO MANY THINGS.

AND, YOU KNOW, WE NEED TO BRING IT DOWN.

>> Mary: YOU KNOW, HOW FEDERAL AND STATE POLICY INTERPLAYS.

YOU WERE A HOUSING -- A SENIOR HOUSING ADVISOR, RIGHT, IN THE OBAMA ADMINISTRATION.

WHAT CONTEXT AND PERSPECTIVE CAN YOU GIVE US NOW ON THAT INTERPLAY BETWEEN FEDERAL AND STATE FUNDS AND POLICIES?

>> I THINK A LOT OF PEOPLE DON'T THINK ABOUT IT ALL THE TIME BECAUSE THE HUD RESOURCES COVER A BROAD RANGE OF RESOURCES.

THERE'S MONEY IN HOUSING AT THE U.S. DEPARTMENT OF AGRICULTURE.

THE V.A.

HELPS PEOPLE BUY HOMES.

WE WORK WITH THE TREASURY DEPARTMENT WITH LOW INCOME HOUSING TAX CREDITS.

BUT IF YOU THINK ABOUT HAVING AN F.H.A.

INSURED MORTGAGE OR YOU THINK ABOUT, YOU KNOW, SOMEBODY WHOSE MOM LIVES IN RENT ASSISTED HOUSING, YOU KNOW, THAT'S THE FEDERAL GOVERNMENT'S HOUSING DOLLARS AT WORK HERE IN MINNESOTA.

AND THAT'S HUNDREDS OF THOUSANDS OF MINNESOTANS.

THAT'S BILLIONS OF DOLLARS.

>> Mary: HAS THE MONEY STOPPED?

WHAT DO YOU KNOW ABOUT THE FLOW OF FUNDS?

>> WE HAD A HICCUP IN THE SECOND WEEK OF ADMINISTRATION.

THERE WAS A THREE-DAY PAUSE.

BUT THEN THE COURTS SAID NO.

AND SO WE'VE BEEN ABLE TO ACCESS OUR FUNDING MOSTLY.

THERE'S A COUPLE PROGRAMS.

WE WERE DOING SOMETHING WITH THE DEPARTMENT OF COMMERCE THAT HELPED US BUY DOWN THE INTEREST RATE ON ENERGY IMPROVEMENT LOANS.

THAT MONEY HAS DRIED UP FOR COMMERCE TO BE ABLE TO GET IT FROM THE FEDERAL GOVERNMENT.

AND THEN WE HAD SOME DEVELOPERS WHO WERE GETTING MONEY TO INVEST IN GREEN RETRO-FITS IN BIG MULTI-FAMILY ONES AND THEY HAVE BEEN TOLD THAT THEY MAY NOT ET THAT MONEY.

>> Mary: YOU MENTIONED HUD, AND MAYBE WE'RE BURYING THE LEDE HERE.

>> IT WAS RUMORED LAST WEEK BUT I SAW IT IN THE NEWS TODAY THAT HUD DOES INTEND TO CLOSE THE FIELD OFFICE HERE.

THAT'S 100 PEOPLE.

OUT OF THE MINNEAPOLIS FIELD OFFICE THAT COVER THE WHOLE RANGE OF HUD PROGRAMMING.

AND FOR US, AS AN AGENCY AND OUR PARTNER EASHZ, THAT'S KIND OF THE DAILY INTERFACE ON ALL THE WORK THAT WE DO TOGETHER.

THOSE ARE THE PEOPLE THAT WE GO TO GET CONTRACTS CLOSED AND WHEN SALES HAPPEN AND GET INSURANCE FROM HUD.

IN THE FIELD OFFICE.

SO THE -- IT'S IN STATUTE THAT EVERY STATE SHOULD HAVE A FIELD OFFICE.

SO WHETHER THIS IS KIND OF ANNOUNCED OR DONE OR NOT DONE OR UNDONE, REALLY HARD TO SAY.

BUT, YOU KNOW, THOSE ARE OUR PARTNERS EVERY DAY.

>> Mary: TOMORROW WE GET AN UPDATED BUDGET FORECAST.

I SHOULD SAY SOMEWHAT.

WHAT DO YOU EXPECT FROM THE BUDGET.

FROM THE FORECAST?

I'M GUESSING YOU'RE NOT EXPECTING RECORD FUNDING AGAIN?

BUT I DON'T KNOW.

THERE'S A LOT OF BIPARTISAN LOVE HERE IN THE WINGS FOR HOUSING.

>> I AM, OF COURSE, WE'D BE HAPPY TO GET MORE FUNDING.

AND, YOU KNOW, IF THERE'S AN OPPORTUNITY TO DO THAT, YOU KNOW, WE'LL BE EXCITED FOR THAT.

YOU KNOW, HONESTLY, THE GOVERNOR'S STARTING POSITION, MY STARTING POSITION THIS SESSION IS LET'S HOLD THE BASE.

LET'S NOT CUT HOUSING.

THIS IS A TIME FOR MOVING FORWARD, NOT BACKWARD.

>> Mary: AND WHAT ABOUT THAT BIG BIPARTISAN COALITION, THIS ONE -- I THINK THEY CALLED IT KIND OF THE MIDDLE, THE MISSING MIDDLE OF HOUSING.

CITIES AND COUNTIES HAVE HAD SOME ISSUES IN THE PAST.

WHAT DO YOU THINK OF THAT CONCEPT IN HELPING THE HOUSES CRISIS?

>> IT'S BECAUSE EVERYBODY IS REALIZING THAT HOUSING SUPPLY AND AFFORDABILITY IS REAL ISSUE IN THEIR COMMUNITY.

SO WE'RE SEEING THESE CONVERSATIONS HAPPEN AS PEOPLE ARE LOOKING FOR A WHOLE BUNCH OF WAYS TO HANDLE IT.

WE'RE NOT REALLY IN THAT CONVERSATION.

WE'RE THE HOUSING FINANCE AGENCY.

I RUN THE STATE'S HOUSING BANK.

WE'RE NOT INVOLVED IN THINGS LIKE LOCAL ZONING AND LAND USE, THINGS LIKE THAT.

BUT WE'RE VERY CURIOUS TO SEE WHERE THE CONVERSATION GOES AND IT'S GREAT TO SEE THE BIPARTISAN DISCUSSION HAPPENING.

>> Mary: THAT'S GOING TO E