Minneapolis renters facing the crush of soaring rents may find some relief thanks to a new initiative by the city. Starting March 13, the City of Minneapolis will begin to accept applications for the Naturally Occurring Affordable Rental Housing (NOAH) Preservation Fund loans, a program crafted to combat displacement and maintain affordability in the city's housing market.
Housing providers and burgeoning real estate developers can apply to receive financial aid to acquire properties that are currently unsubsidized, with the goal to swiftly act to preserve their affordability. However, the city has made it clear they are prepared to extend the application window for an additional month if they don't, initially, attract at least four qualified proposals.
As outlined in a city bulletin, the fund will prioritize projects that offer a higher quantity of units at deep affordability levels, particularly those at or below 50% of the Area Median Income (AMI). Furthermore, the city is encouraging smaller developers with community ties and non-profit entities to apply, signaling an effort to keep the roots of the program local and community-centric.
Eligibility for the NOAH funds is fairly broad, encapsulating both for-profit and non-profit developers. The initiative notably favors applications that propose a substantial amount of units intended for households earning less than 60% of AMI, aiming to give a leg up to those in the greatest need. The application process is designed to be highly collaborative, requiring applicants to meet with city staff before submitting their requests to better ensure that they fully fit the program's rigors and objectives.
Prospective applicants should reach out for a pre-application meeting with NOAH Program staff by emailing [email protected] before the April 24 deadline. These meetings are an opportunity for applicants to thoroughly understand the resources available and the complex details of the financial proforma required for the application process. After this initial engagement, the city will share access to the NOAH Preservation Fund Application Portal for parties to officially throw their hat in the ring.
The aim of the NOAH Preservation Fund is to assist in the acquisition and preservation of rental properties that are presently at risk of rising rents, thereby safeguarding low-income renters from the threat of involuntary displacement. For many Minneapolis residents on the brink, this program could signify a critical barrier against the tide of gentrification and the erosion of affordable housing stock.
