12-10-2024 4:43pm

Minneapolis To Invest Nearly $18.5 million In Affordable Housing Projects

Tom Akaolisa Editor

Minneapolis To Invest Nearly $18.5 million In Affordable Housing Projects

The Brief

Minneapolis Mayor Jacob Frey announced the 11 affordable housing projects receiving nearly $18.5 million in funds.

The money will be distributed from the Affordable Housing Trust Fund, with plans to build new affordable housing and refurbish current locations.

The City of Minneapolis is investing nearly $18.5 million to help build new affordable housing and refurbish existing locations.

What we know

Minneapolis Mayor Jacob Frey, along with city and community leaders, unveiled the 11 affordable housing projects which were awarded nearly $18.5 million in funding from the Affordable Housing Trust Fund (AHTF). The funding will help aid in construction of new affordable housing and refurbish current locations.

The press release states there were 25 applications, requesting $42,600,298 in funding, but only 11 projects were selected.

The projects selected, according to the press release, are:

Ward 1 - Clare 5 Housing: $1,205,000 for new construction of 33 units of 100% supportive housing for seniors living with HIV/AIDS.
Ward 1–1345 Central: $2,480,000 for the new construction of 64 units of affordable housing and first floor production space.
Ward 3 - Clare Apartments: $1,120,000 for rehabilitating 32 units of 100% supportive housing for people living with HIV/AIDS.
Ward 4 - Warren Apartments: $2,200,000 for new construction of 61 units with a significant number of deeply affordable housing units.
Ward 4 - Upper Harbor Terminal: $1,295,000 for the new construction of 183 affordable units on a City-owned site.
Ward 5 - EPIC+R: $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.
Ward 5 - Downtown View: $1,465,000 for the rehabilitation of 39 units serving homeless youth.
Ward 6 - Native American Community Clinic Housing: $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: $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 10–2116 Nicollet: $1,070,000 for 53 units of 100% deeply affordable supportive housing for people at risk of homelessness.
Ward 12 - Cheatham Apartments: $2,255,000 for new construction of 98 units of mixed income housing with a significant number of large family units.

The nearly $18.5 million in funding is made up of approximately $17 million in direct investment and $1.5 million in federal tax credits. Officials say the funds are distributed as a deferred loan with a 30-to-40-year term, according to the press release.

What they're saying

"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 in a statement. "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 2024 AHTF Program will help create or preserve 803 rental housing units across Minneapolis," Elfric Porte, director of housing policy and development for the City of Minneapolis, said in a statement. "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."

Background

The AHTF helps provide gap financing for multifamily rental projects and is awarded through a competitive Notice of Funding Availability process. Those interested submit an application to be considered, then project recommendations are made to the BIHZ Committee before heading to the City Council for approval, according to the city's website.

The press release states the requirements for the funding includes a housing project containing at least 10 or more units. Additionally, 20% of the total units need to be affordable and occupied by those at or below 50% of the area's median income.