Allen E. Hoppe, CFA, CTP,
Director - Banking, Investments and Debt
The City Council has approved $16.8 million in direct investment and $1.5 million in 10-year federal tax credits to create or preserve 876 units of affordable multifamily rental housing in nine projects located throughout the city.
These investments are the result of awards from the City’s Affordable Housing Trust Fund (AHTF) and Federal Low Income Housing Tax Credit programs for 2023. Together, these investments will leverage over $341.4 million in private and public resources.
“Minneapolis has been leading the nation in our affordable housing production – and the Affordable Housing Trust Fund is a big part of that body of work,” said Mayor Frey. “We know when people have a roof over their head and a safe, stable place to call home, it benefits their mental, physical, and emotional well-being, and that is why this fund is so important. People need access to affordable housing, and we’re giving them that. Thank you to our housing team in the Community Planning and Economic Development department for their partnership and ongoing work to further our affordable housing goals.”
The AHTF creates new and preserves existing affordable housing for low-income renters with incomes at or below 50% AMI ($62,100 per year for a family of four). Almost 75% of renters experience cost burdens (pay more than 30% of their income for housing) because of the affordable housing shortage in the city. Black, Indigenous and People of Color are disproportionately impacted by housing instability.
“The City’s $18.3 million commitment towards affordable housing will leverage more than $18 dollars of additional funding for every dollar the City invests,” said Council Member Lisa Goodman, Chair, Business, Inspections, Housing, and Zoning Committee.** “**This allocation will assist in building over 876 affordable homes in Minneapolis, a third of which are deeply affordable (up to 30% AMI). This large number of affordable homes being built or preserved is consistent with our adopted goals and is more than most other metro cities combined.”
The AHTF program and the Federal Low Income Housing Tax Credit (HTC) program provide up front equity and gap financing to assist with the production and preservation of decent, safe, and affordable multifamily rental housing.
The City Council approved the following project on Thursday, Dec. 7 for a preliminary reservation of HTCs totaling nearly $1.5 million:
These tax credits will generate over $14.5 million in up front equity for this project.
The City Council also approved just over $16.8 million from the AHTF for the following projects:
In Ward 12, $1,000,000 for the Cheatham Apartments project which is a mixed income building providing deep affordability to large family units including 32 units with secured rental assistance and 20 units restricted for homelessness.
In Wards 8, 9, 10, $1,365,000 for The Northview project which is a scattered site project that preserves large family units with deep affordability and secured rental assistance for 22 units as well as 20 units restricted for homelessness.
In Ward 8, $2,260,000 for The LOMA project which is a 100% affordable senior housing mixed-use project that includes a large number of three bedrooms units for inter-generational living with secured rental assistance for 31 units and 15 units restricted for homelessness.
In Ward 10, an additional $1,000,000 for the 1301 Lake Street project which is a mixed-use building with affordable family housing and 24 units set aside for homelessness.
In Ward 6, $1,350,000 for the Portland Village Rehabilitation project which is preservation of large family housing with deep affordability and 20 units restricted to homelessness. All units have rental assistance except for the caretaker unit.
In Ward 9, an additional $2,500,000 for the Little Earth Rehab project which is rehabilitation and preservation of 212 deeply affordable family housing units including 88 three-bedroom units and 18 four-bedroom units.
In Ward 7, $2,019,427 for the St. Olaf Exodus Building project which is a rehabilitation and new construction project that creates 66 units of permanent supportive housing for people experiencing homelessness or at risk of homelessness.
In Ward 4, 178 units, an additional $3,500,000 for the Upper Harbor Terminal Parcel 6A project which consists of deeply affordable housing including family units and 10 units reserved for homelessness. This project is the first phase of a City priority development site and is a mixed-use project.
In Ward 6, 83 units, $1,900,00 for the NACC Housing project which is a mixed-use project that provides supportive housing including 11 units restricted for homelessness, large family units, and an expanded clinic facility on-site.
In Mayor Frey’s 2024 approved City budget, there will be $18 million more invested into the AHTF.
