Nearly $200M approved to increase affordable housing access in Minnesota
ST. PAUL, Minn. (FOX 9) - Nearly $200 million will go toward preserving and creating affordable housing statewide, according to Minnesota Housing and the governor's office.
Thursday, the Minnesota Housing board of directors approved staff recommendations of $195 million in funding selections that will go toward 73 housing developments for a total of 2,387 homes, which includes rental units and single-family homes.
"Every Minnesotan deserves access to affordable housing," said Governor Tim Walz in a press release. "That has never been clearer than this year as we seek stable places to live, raise families, and shelter from the virus. We must increase affordable housing options for Minnesotans across the state, and today’s announcement is a critical step toward making that a reality."
The funding will go toward projects throughout the state from the Twin Cities metro area to Red Lake Nation to cities in Greater Minnesota. More than half of the projects will fund construction of new rental homes. There are also plans to help prevent homelessness by funding two permanent supportive housing developments and investing in 527 multifamily units for those at risk or experiencing homelessness.
Affordability is a key factor for the announced projects. More than 80 percent of the selected single-family projects will serve households below 80 percent area median income.
In addition to the $195 million, the plans also utilize $334 million in private and local resources for over $529 million in total development costs. Part of the funding comes from the $100 million in the Housing Infrastructure Bonds passed in the delayed bonding bill this October.