Minneapolis is putting nearly $18.5 million towards the construction of new affordable housing and the renovation of current properties.
Minneapolis Mayor Jacob Frey, together with city and community leaders, announced the 11 affordable housing projects that received close to $18.5 million in funding from the Affordable Housing Trust Fund (AHTF). The funding will support the building of new affordable housing and the renovation of existing sites.
A total of 25 applications were submitted, seeking $42,600,298 in funding, yet only 11 projects were chosen.
The chosen projects, as stated in the announcement, include:
- Ward 1 – Clare 5 Housing: $1,205,000 allocated for the construction of 33 units dedicated to providing full support for seniors living with HIV/AIDS.
- Ward 1–1345 Central: $2,480,000 allocated for the construction of 64 affordable housing units along with production space on the first floor.
- Clare Apartments in Ward 3: $1,120,000 allocated for the rehabilitation of 32 units dedicated to supportive housing for individuals living with HIV/AIDS.
- Ward 4 – Warren Apartments: $2.2 million for the development of 61 new units, featuring a considerable portion of affordable housing options.
- Ward 4 – Upper Harbor Terminal: $1,295,000 allocated for the construction of 183 affordable housing units on a City-owned property.
- Ward 5 – EPIC+R: $1.5 million allocated for the construction of 68 affordable housing units, including many family-sized options, on a City-owned property.
- Ward 5 – Downtown View: $1,465,000 allocated for the renovation of 39 units dedicated to homeless youth.
- Ward 6 – Native American Community Clinic Housing: $1,155,000 allocated for the construction of 83 affordable units as part of a mixed-use development featuring an on-site expanded clinic.
- Ward 8 – Zaria Apartments: $1,250,000 for the development of 89 new units, featuring a considerable portion of affordable housing options and a notable amount of family-sized units.
- Ward 10–2116 Nicollet: $1,070,000 allocated for 53 units of fully affordable supportive housing aimed at individuals facing homelessness risks.
- Ward 12 – Cheatham Apartments: $2,255,000 allocated for the development of 98 mixed-income housing units, featuring a considerable amount of spacious family units.
Funding totals nearly $18.5 million, consisting of around $17 million from direct investment and $1.5 million from federal tax credits. According to the press release, officials indicate that the funds are provided as a deferred loan with a term of 30 to 40 years.
“Minneapolis is leading the way in affordable housing, with the Affordable Housing Trust Fund playing a central role in our efforts,” said Mayor Jacob Frey in a statement. “With the support of our amazing housing partners, we’re creating deeply affordable housing at a rate 8.5 times higher than previous years. Safe, affordable housing is a basic right for everyone in Minneapolis, and today’s investment is a reminder that we’re fully committed to making sure that right is a reality for all.”
The AHTF offers essential funding support for multifamily rental projects, allocated through a competitive funding announcement process. Interested individuals should submit an application for consideration, after which project recommendations are presented to the BIHZ Committee before being forwarded to the City Council for approval, as stated on the city’s website.
The announcement outlines that the funding prerequisites involve a housing initiative with a minimum of 10 units or more. Furthermore, 20% of the total units must be affordable and designated for individuals earning at or below 50% of the area’s median income.