In a decisive step toward addressing the critical need for affordable housing, the City of Minneapolis has committed nearly $18 million to support 11 affordable rental housing projects across the city. This includes $17 million in direct investments and an additional $1.5 million in 10-year federal Low-Income Housing Tax Credits, creating a significant impact on housing availability and affordability.
The City Council approved the funding on December 5, as part of the Affordable Housing Trust Fund (AHTF) Program and the Federal Low-Income Housing Tax Credit Program. These initiatives aim to support the development and rehabilitation of affordable multifamily rental housing, ensuring access to safe and stable housing for Minneapolis residents.
A Commitment to Affordable Housing
“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 during a news conference. “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 Affordable Housing Trust Fund was established in 2003 and has since become a critical tool in financing affordable and mixed-income rental housing projects. To qualify, at least 20% of the units in a project must be affordable to households earning at or below 50% of the area median income (AMI).
This year, the City received 25 applications requesting over $42 million in AHTF funding. Each proposal underwent rigorous evaluation, including criteria such as financial feasibility, project readiness, and alignment with design guidelines. Approved projects receive funds as deferred loans with 30- to 40-year terms.
The Awarded Projects
The $18 million investment will help create or preserve 803 rental housing units across Minneapolis. The 11 projects receiving AHTF support include:
- Ward 1: Clare 5 Housing, 1345 Central
- Ward 3: Clare Apartments
- Ward 4: Warren Apartments, Upper Harbor Terminal
- Ward 5: EPIC+R, Downtown View
- Ward 6: Native American Community Clinic-Housing
- Ward 8: Zaria Apartments
- Ward 9: Cheatham Apartments
- Ward 10: 2116 Nicollet
These projects range from supportive housing for seniors and individuals experiencing homelessness to mixed-income developments with family-sized units.
A Long-Term Vision
Elfric Porte, the City’s Director of Housing Policy and Development, emphasized the transformative potential of these investments. “The 2024 AHTF Program will help create or preserve 803 rental housing units across Minneapolis,” he said. “Mayor Frey has championed producing and preserving affordable housing through the AHTF budget for over a decade. I’m grateful to him and the City Council for again stepping up with a significant $18 million investment in this work.”
The funding is not just a financial commitment—it’s a declaration of the City’s ongoing dedication to creating sustainable, affordable housing solutions for its residents.
For more details, including a breakdown of the awarded projects, watch the full news conference here.
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