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Statewide Affordable Housing Aid
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Statewide Affordable Housing Aid helps counties, Tribal nations, and greater Minnesota 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 was first paid in 2023.
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The Department of Revenue certifies amounts for eligible Tribal nations, counties, and cities by August 1 each year. We base this certification on current laws, including any changes from the most recent legislative session.
A summary of how aid was calculated is included with each year’s certification.
In 2023, Statewide Affordable Housing Aid was paid in one installment on December 26. Beginning in 2024, it will be paid to cities and counties in two equal installments in the year after it is certified. The first half will be paid each year on July 20 and the second half on December 26. The aid for Tribal nations will be paid each year in one installment by December 26 of the year it is certified.
Funds from this aid program must be spent on a qualifying project by December 31 of the fourth year after the aid was received.
Funds will also be considered spent if both of these conditions are met:
- A county or eligible city demonstrates to Minnesota Housing that the city or county cannot expend funds on a qualifying project by the deadline due to factors outside the control of the city or county
- The funds are transferred to a local housing trust fund
Funds transferred to a local housing trust fund must be spent on a project or household that meets affordability requirements.
Qualifying projects include:
- Emergency rental assistance for households earning less than 80% of area median income as determined by the United States Department of Housing and Urban Development
- Financial support to nonprofit affordable housing providers in their mission to provide safe, dignified, affordable, and supportive housing
- Construction, acquisition, rehabilitation, demolition or removal of structures, construction financing, permanent financing, interest rate reduction, refinancing, and gap financing of housing to provide affordable housing for households that have incomes not exceeding:
- For homeownership projects, 115% of the greater of state or area median income as determined by the United States Department of Housing and Urban Development
- For rental housing projects, 80% of the greater of state or area median income as determined by the United States Department of Housing and Urban Development
- For areas outside Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington counties: the development of properties that are rented at market value if the relevant unit of government submits with their report to Minnesota Housing a resolution and supporting documentation showing that the area meets the requirements of Minnesota Statute 462A.39, subd. 4, para. (a)
For more information about qualifying projects, go to the Minnesota Housing Local Government Housing Programs under Local and Statewide Affordable Housing Aid.
Housing developed or rehabilitated with funds under this program must be affordable to the local work force.
Projects are prioritized that provide affordable housing to households with incomes that:
- For homeownership projects, do not exceed 80% of the greater of state or area median income as determined by the United States Department of Housing and Urban Development
- For rental housing projects, do not exceed 50% of the greater of state or area median income as determined by the United States Department of Housing and Urban Development.
Priority may be given to projects that:
- Reduce disparities in home ownership
- Reduce housing cost burden, housing instability, or homelessness
- Improve the habitability of homes
- Create accessible housing
- Create more energy- or water-efficient homes
Gap financing is the difference between the costs of the property and either:
- The market value of the property upon sale
- The amount the targeted household can afford for housing, based on industry standards and practices.
If aid from 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 adapt the building to include:
- The greater of at least one unit or at least 5% of units that:
- Are accessible as defined by section 1002 of the current State Building Code Accessibility Provisions for Dwellings Units in Minnesota
- Include at least one roll-in shower
- The greater of at least one unit or at least 5% of units that are sensory-accessible with:
- Soundproofing between shared walls for first and second floor units
- No fluorescent lighting in units and common areas
- Low-fume paint
- Low-chemical carpet
- Low-chemical carpet glue in units and common areas
Note: 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 to Minnesota Housing no later than December 1. The report must include documentation of the location of any unspent funds distributed and of qualifying projects completed or planned with funds.
For more information about the report and submission process, go to the Minnesota Housing Local Government Housing Programs under Local and Statewide Affordable Housing Aid.
All 11 federally recognized Tribal nations located in Minnesota are eligible to receive aid.
Eligible Tribal nations may choose to receive aid by:
- Emailing PropTax.Admin@state.mn.us by January 15 of the year they would like to start receiving aid
- Certify their most recent estimated number of enrolled members to PropTax.Admin@state.mn.us by March 1 of each year
For aid payable in 2024 only, Tribal nations have until June 30 to choose to receive aid and provide their most recent estimated number of enrolled members.
