News Story

The City of Minneapolis has committed nearly $17 million in direct investment, along with $1.5 million in 10-year federal tax credits, to 11 affordable rental housing projects in Minneapolis. The funds are awarded through a competitive request-for-proposal process each year. Both the Affordable Housing Trust Fund Program (AHTF) and the Federal Low Income Housing Tax Credit Program support new construction and the rehabilitation of affordable multifamily rental housing. The City Council approved the awards on Dec. 5.

"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. "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 was established in 2003 to assist in financing the production and stabilization of affordable and mixed-income rental housing projects with 10 or more units. Twenty percent of the total units need to be affordable and occupied by households at or below 50 percent of the area median income (AMI).

The City received 25 applications requesting $42,600,298 in funding from the AHTF. Proposals were evaluated based on underwriting standards, financial feasibility, location, project readiness, design guidelines and more. The funds are provided as a deferred loan with a 30- to 40-year term.

The recipients

The 11 projects awarded AHTF funds are as follows:

• Ward 1
  • Clare 5 Housing - 1900 Monroe St. NE - $1,205,000 for new construction of 33 units of 100% supportive housing for seniors living with HIV/AIDS.
  • 1345 Central - 1345 Central Ave. NE - $2,480,000 for the new construction of 64 units of affordable housing and first floor production space.
• Ward 3
  • Clare Apartments - 929 Central Ave. NE - $1,120,000 for rehabilitating 32 units of 100% supportive housing for people living with HIV/AIDS.
• Ward 4
  • Warren Apartments - 3120 Washburn Ave. N - $2,200,000 for new construction of 61 units with a significant number of deeply affordable housing units.
  • Upper Harbor Terminal - 3700 Washington Ave. N. - $1,295,000 for the new construction of 183 affordable units on a City-owned site.
• Ward 5
  • EPIC+R - 1014-1016 Plymouth Ave. – $1,500,000 for the new construction of 68 deeply affordable housing units with a significant number of family sized units on a City-owned site.
  • Downtown View - 1205 Chestnut Ave. - $1,465,000 for the rehabilitation of 39 units serving homeless youth.
• Ward 6
  • Native American Community Clinic-Housing - 1213 Franklin Ave. E. – $1,155,000 for the new construction of 83 deeply affordable units in a mixed-use project with an expanded clinic on-site.
• Ward 8
  • Zaria Apartments - 3030 Nicollet Ave. - $1,250,000 for new construction of 89 units with a significant number of deeply affordable housing units as well as a significant number of family sized units.
• Ward 9
  • Cheatham Apartments - 3716 Cheatham Ave. - $2,255,000 for new construction of 98 units of mixed income housing with a significant number of large family units.
• Ward 10
  • 2116 Nicollet - 2116 Nicollet Ave. S. – $1,070,000 for 53 units of 100% deeply affordable supportive housing for people at risk of homelessness.

The City Council also approved the project at 2116 Nicollet Ave. S. for a preliminary reservation of Federal Housing Tax Credits (HTCs) of $1.5 million for its housing additions. This HTC award will generate more than $12 million in equity to support the construction.

“The 2024 AHTF Program will help create or preserve 803 rental housing units across Minneapolis,” said Elfric Porte, director of housing policy and development for the City of Minneapolis. “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.”