The Potluck

Affordable housing in state gets $241 million boost

By: - January 28, 2022 5:14 pm
homebuilding

Photo by Spencer Platt/Getty Images.

Minnesota Housing officials announced on Friday the recipients of $241 million in government funding for the construction and preservation of affordable apartments, senior housing and single-family homes.

The selections include $220.5 million for building and renovating 1,095 apartments, $12.5 million for 322 single-family homes and $7.5 million for infrastructure investments in 12 mobile home parks across the state.

The projects will be financed through a combination of federal tax credits and state grants and loans, including most of the $100 million in housing infrastructure bonds approved by the Legislature last year.

“Every one of these units, every one of these dollars, is really about somebody’s life,” said Housing Commissioner Jennifer Ho during a news conference on Friday.

Ho said a third of the multifamily projects selected will be deeply affordable — the highest percentage ever selected. Those projects will have apartments that are affordable for households making less than 30% of the area median income. That’s about $22,000 a year for a single person or $31,450 for a family of four in the Twin Cities metro area.

Of the multifamily housing projects selected, 12 are in the Twin Cities and 10 are in greater Minnesota.

Selected multifamily projects include (see all selections here):

  • $11.1 million to Simpson Housing in Minneapolis for a new shelter and apartment building
  • $10.2 million to Aeon in Big Lake for a senior housing project
  • $13.9 million to the Housing and Redevelopment Authority of Duluth for a senior housing project

In 2020, the Legislature made single-family homes eligible to be financed through housing infrastructure bonds, a state financing tool unique to Minnesota. The $12.5 million awarded by Minnesota Housing will go toward building 68 new homes, renovating 100 homes and providing down-payment assistance for 154 homebuyers.

Nearly all of the homes that will be built or renovated will be owner-occupied, helping more low- and moderate-income people become homeowners.

Selected multifamily projects include (see all selections here):

  • $405,000 to Twin Cities Habitat for Humanity to help build 10 new homes
  • $560,000 to City of Lakes Community Land Trust in Minneapolis for seven existing condominiums
  • $932,742 to First Homes Properties to create six new homes in southeast Minnesota

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Max Nesterak
Max Nesterak

Max Nesterak is the deputy editor of the Reformer and reports on labor and housing. Most recently he was an associate producer for Minnesota Public Radio after a stint at NPR. He also co-founded the Behavioral Scientist and was a Fulbright Scholar to Berlin, Germany.

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