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Local Affordable Housing Aid
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Local Affordable Housing Aid helps metropolitan local governments develop and preserve affordable housing within their jurisdictions to keep families from losing housing and to help those experiencing homelessness find housing. Aid will begin in 2024.
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The Department of Revenue certifies preliminary distribution factors for eligible counties and cities by August 1 each year. We base this certification on current statutes, including any changes from the most recent legislative session.
Revenue also posts aid amounts after they are calculated each year and before the first-half payment on July 20.
The certification of preliminary distribution factors and posting of final aid amounts is accompanied by a summary explaining how each was calculated.
Local Affordable Housing Aid is paid in two equal installments in the year aid is calculated. The first half is paid on July 20 and the second half on December 26.
Funds distributed under this aid program must be spent on a qualifying project.
Funds will be considered spent if:
If funds are transferred to a local housing trust fund, they must be spent on a project or household that meets the affordability requirements described below.
Deadline: Funds must be spent by December 31 of the fourth year after the aid was received.
Qualifying projects include:
Projects are prioritized that provide affordable housing to households that have incomes that:
Priority may be given to projects that:
Gap financing is the difference between the costs of the property and either:
If aid received under this program is used for demolition or removal of existing structures, the cleared land must be used for the construction of housing to be owned or rented by persons who meet the income limits described above.
If an aid recipient uses the aid on new construction or substantial rehabilitation of a building containing more than four units, the loan recipient must construct, convert, or otherwise adapt the building to include:
- The greater of:
- At least one unit
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At least 5% of units that are accessible units, as defined by section 1002 of the current State Building Code Accessibility Provisions for Dwellings Units in Minnesota, and include at least one roll-in shower
- The greater of
- At least one unit
- At least 5% of units that are sensory-accessible units that include:
These guidelines do not relieve a project funded by this aid program from meeting other applicable accessibility requirements.
Beginning in 2025, aid recipients must submit a report annually, no later than December 1 of each year, to the Minnesota Housing Finance Agency. The report must include documentation of the location of any unspent funds distributed under this section and of qualifying projects completed or planned with funds under this section.
Will there be more information provided about eligible uses of aid?
All of the information for use of aid provided in the law for this program is in the Use of Aid and Qualifying Projects sections on this page. We will update those sections if the Legislature changes the guidelines.