The City Council has approved $15.8 million in direct investment and $1.5 million in 10-year federal tax credits to create or preserve 1,445 units of affordable multifamily rental housing in 12 projects located throughout the city. These investments are the result of awards from the City’s Affordable Housing Trust Fund (AHTF) and Federal Low Income Housing Tax Credit programs for 2022. Together, these investments will leverage over $473.7 million in private and public resources.
"Housing is a right, and the Affordable Housing Trust Fund is helping bring that right to more people than ever before," said Mayor Jacob Frey. "The need for affordable housing has only deepened, and we are doing our part – at record pace and numbers – to help more Minneapolis residents and families get a roof over their head. I want to thank our Community Planning and Economic Development Department for their incredible partnership and work on furthering our affordable housing goals.”
The AHTF creates new and preserves existing affordable housing for low-income renters with incomes at or below 50% AMI ($58,560 per year for a family of four). Almost 75% of renters experience cost burden (pay more than 30% of their income for housing) because of the affordable housing shortage in the city. Black, Indigenous, People of Color are disproportionately impacted by housing instability.“The City’s $15.8 million commitment towards affordable housing will leverage 12 dollars for each dollar the City invests from the private sector,” said Council Member Lisa Goodman, Chair, Business, Inspections, Housing, and Zoning Committee. “This allocation will assist in building over 1,400 affordable homes in Minneapolis, a third of which are deeply affordable. This large number of affordable homes being built or preserved is consistent with our adopted goals and is more than most other metro cities combined.”
The AHTF program and the Federal Low Income Housing Tax Credit (HTC) program provide up front equity and gap financing to assist with the production and preservation of decent, safe, and affordable multifamily rental housing.
The City Council approved the following projects today for a preliminary reservation of HTCs totaling $1.5 million:
- In Ward 5, $638,481 for the Shelby Commons project, which is 46 units of deeply affordable family sized housing including units set aside for persons experiencing homelessness and those with disabilities.
- In Ward 2, $903,913 for the Agate Housing project, which is 48 units of deeply affordable permanent supportive housing including a health clinic and adjacent emergency shelter facility.
The City Council also approved just over $15.8 million from the AHTF for the following projects today:
- In Ward 5, $3,780,000 for the Olson Court – Park Plaza project which is a rehabilitation and new construction project that preserves 134 units and creates 116 new units of deeply affordable housing, including 10 homeless units and units serving large families.
- In Ward 10, $650,000 for the Passage Community project which is a rehabilitation project preserving 17 units of permanent supportive housing with deep affordability for high priority homelessness.
- In Ward 6, $720,000 for the Minnesota Indian Women’s Resource Center project which is a rehabilitation project with 24 units of permanent supportive housing with deep affordability for high priority homelessness.
- In Ward 6, $2,990,000 for the 901 Cedar Avenue Apartments project which is family housing with deep affordability including 35 3-bedroom units and 35 units set aside for homelessness.
- In Ward 9, $1,500,000 for the Little Earth Rehab project which is rehabilitation and preservation of 212 deeply affordable family housing units including 88 3-bedroom units and 18 4-bedroom units.
- In Ward 12, $1,070,000 for the Snelling Yards Family Housing project which consists of mixed income workforce housing including family units and 13 units reserved for homeless veterans.
- In Ward 10, $1,000,000 for the 1301 Lake Street project which is a mixed-use building with affordable family housing and 24 units set aside for homelessness. This project is located on Lake Street, which is a designated recovery area.
- In Ward 3, $1,400,000 for the Bottineau Commons & Lofts project which is a rehabilitation project preserving 156 affordable units.
- In Ward 4, $1,500,000 for the Upper Harbor Terminal Parcel 6A project which consists of deeply affordable housing including family units and 10 units reserved for homelessness. This project is the first phase of a City priority development site and is a mixed-use project.
- In Ward 6, $1,270,000 for the Agra project which is a mixed-use building that includes a large number of family sized units and deeply affordable units.
Original source can be found here.
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