Minneapolis City Council approves $18.3 million in affordable housing investments

Cory Knudsen KSTP
(KSTP)

Minneapolis City Council has approved $18.3 million in affordable housing investments throughout the city.

According to the city, $16.8 million was approved in direct investments while $1.5 million was approved in 10-year federal tax credits to create or maintain 876 units of affordable multifamily rental housing in nine projects throughout Minneapolis.

The investments are the result of the city’s Affordable Housing Trust Fund (AHTF) and Federal Low Income Housing Tax Credit (HTC) programs for 2023. The city states that these investments will leverage over $341.4 million in private and public resources.

“Minneapolis has been leading the nation in our affordable housing production – and the Affordable Housing Trust Fund is a big part of that body of work,” said Mayor Jacob Frey. “We know when people have a roof over their head and a safe, stable place to call home, it benefits their mental, physical, and emotional well-being, and that is why this Fund is so important. People need access to affordable housing, and we’re giving them that. Thank you to our housing team in the Community Planning and Economic Development department for their partnership and ongoing work to further our affordable housing goals.”

The AHTF creates and preserves affordable housing for low-income renters with incomes at or below 50% AMI ($62,100 per year for a family of four). The city emphasizes that almost 75% of renters pay more than 30% of their income for housing because of the affordable housing shortage.

On Dec. 7, Minneapolis City Council approved nearly $1.5 million for the St. Olaf Exodus Building project.

City Council also approved just over $16.8 million from the AHTF for the following projects:

  • Cheatham Apartments
  • The Northview
  • The LOMA
  • 1301 Lake Street
  • Portland Village Rehabilitation
  • Little Earth Rehab
  • St. Olaf Exodus Building
  • Upper Harbor Terminal Parcel 6A
  • NACC Housing

The city has plans to invest an additional $18 million into AHTF in its 2024 budget.