The City of Minneapolis is bolstering its reputation as a stronghold for affordable housing with a recent multi-million-dollar infusion into local housing projects, aiming to ameliorate the chronic challenge of affordable housing scarcity. According to a statement obtained by the City of Minneapolis, nearly $17 million in direct investment coupled with $1.5 million in Federal Low Income Housing Tax Credits over a decade, will back 11 affordable rental housing initiatives across the city got the green light from the City Council last Thursday.
The funding is distributed via a competitive request-for-proposal process administered annually, leveraging the Affordable Housing Trust Fund Program (AHTF) and the Federal Low Income Housing Tax Credit Program to support not only new projects but also the refurbishment of existing multifamily rental accommodations, Mayor Jacob Frey remarked, "With the support of our amazing housing partners, we’re creating deeply affordable housing at a rate 8.5 times higher than previous years,” commending the city's commitment to ensuring accessible housing for its residents.
Since its inception in 2003, the AHTF has played a pivotal role in fostering the production and stabilization of rental housing, mandating that at least 20% of units adhere to affordability for households earning at or below 50% of the area median income (AMI). The current round saw 25 applications with a collective ask for over $42 million, which were rigorously assessed on financial viability, location, project readiness, and design standards, amongst other critical criteria; ultimately, loans with terms ranging from 30 to 40 years will be provided to the selected developments.
Within the selected recipients, a diverse range of projects spanning several wards across Minneapolis were announced. Projects like the Clare 5 Housing and the 1345 Central promise new constructions of supportive housing for seniors with HIV/AIDS and affordable housing units with production space below. Respectively, Ward 3's Clare Apartments is set for rehabilitation with 32 supportive housing slots designed for individuals living with HIV/AIDS, and in Ward 4, both the Warren Apartments and Upper Harbor Terminal will see the rise of new affordable units. The former hosting 61, the latter 183, combined efforts that showcase the city's multifaceted approach to addressing the critical need for affordable living spaces.
In the statement, Elfric Porte, the City's director of housing policy and development, praised Mayor Frey's decade-long advocacy for AHTF’s mission, with an acknowledgment for the City Council's backing, stating, “The 2024 AHTF Program will help create or preserve 803 rental housing units across Minneapolis,” underscoring the impact of the substantial $18 million investment that will ripple through the city’s housing landscape.
