The City of Minneapolis is opening its doors once again to applicants looking to keep housing affordable in the midst of a volatile market. Starting from March 13, property managers and budding real estate entrepreneurs are invited to throw their hats into the ring for a slice of the Naturally Occurring Affordable Housing (NOAH) Preservation Fund Loans. This program has been set up to assist in the acquisition and preservation of rental properties that are currently unsubsidized, helping to protect residents from surging rents and the risk of being uprooted from their homes.
Prospective candidates are looking to quickly get in on the action with a six-week window that will snap shut at 4 p.m. on April 24, 2024. Should the city receive an underwhelming response of fewer than four qualified applications, they plan to extend the opportunity for another month. The city is set to meticulously evaluate and is expected to cherry-pick a maximum of four projects best aligned with the initiative's strict criteria.
Getting a foot in the door doesn't just hinge on rapid response. Minneapolis is laying down precise priorities for qualification. They're on the lookout for operations that will deliver a greater number of units affordable to those earning no more than 50% of the Area Median Income (AMI), and a commitment to maintaining these low rents for lengthy periods that outstrip the minimum ten-year term. Preference is leaning towards smaller, neighborhood-rooted developers as well, according to the city's announcement.
Who's eligible to vie for these funds? The city's doors are wide open, inviting applications from all organizations, whether driven by profit or community service. The city is ardently encouraging applications particularly from emerging developers and non-profit entities. To make the cut, portfolios must comprise at least 75% of units affordable for those making less than 80% AMI, with a necessary 20% or more earmarked for households at or beneath the 60% AMI threshold. Applications that promise even higher percentages of these financially accessible units, especially those under 50% AMI, are to be given an edge in the selection process.
Preliminary steps include mandatory meetings with city staff for applicants, starting March 13 to be scheduled until the April 24 deadline. All these interactions are designed to prepare potential borrowers before diving headlong into the process. A completed financial proforma, alongside the address(es) of the properties up for acquisition, are essential for a meaningful conversation. Ensuring everything is in order, the city then provides access to the NOAH Preservation Fund Application Portal for the completion of the application process.
