Local Government Housing Programs

Minnesota Housing is accepting Notices of Intent to Apply for the 2025 Greater Minnesota Small Cities (Tier II Cities) Housing Aid Grant Program Request for Proposals (RFP). Submitting notice of your intent to apply will help Minnesota Housing and key stakeholders better manage the program and tailor technical assistance to your needs. 

The Request for Proposals (RFP) will open on or around Thursday, February 20, 2025. Applications will be due sometime in April; please consult the RFP (once available) for details. Minnesota Housing will announce publication of the RFP via eNews and the webpage you are viewing now.

This program is designed to aid smaller Greater Minnesota cities (those outside the seven-county Twin Cities metro area with fewer than 10,000 residents) to develop and preserve affordable and workforce housing. Up to $4.5 million is available for 2024-2025. Smaller annual appropriations are expected to continue thereafter.

Only city governments representing cities of fewer than 10,000 residents outside the seven-county Twin Cities metro are eligible for this program. 

You may wish to review the Program Guide for more information.

You may send questions to tier2cities.mhfa@state.mn.us.  

The Bring It Home Rental Assistance Program, also referred to as “Bring It Home”, is a new program to create rental assistance for low-income families across Minnesota. Funded by state appropriations and a new metro sales tax for housing, the program will provide grants to Program Administrators who will administer the program as direct assistance for renter households. 

Learn more about the Bring It Home Rental Assistance Program. 

The Local Housing Trust Funds Grant Program was established to encourage local governments to create or fund Local Housing Trust Funds.

The program uses state funding to match a portion of new housing trust fund dollars to encourage local investment in affordable housing across Minnesota. These funds may come from any source other than the state or federal government.

 The grant funds:

• Must be used for households at or below 115% of state median income
• May be used for
  • Development, rehabilitation or financing of housing
  • Downpayment assistance
  • Rental assistance
  • Homebuyer counseling services
  • Administrative expenses, up to 10% of grant 
• Must be used within five years 

In 2021, $1 million in one-time funding was allocated to create the program. This was supplemented by an additional $4.8 million in 2023.

The Greater Minnesota Small Cities (Tier II Cities) Housing Aid Grant Program is a new program funded by the 2023 legislative session as part of the Statewide Affordable Housing Aid program. The program was established to aid smaller Greater Minnesota cities outside the seven-county metro area with fewer than 10,000 people to develop and preserve affordable housing within their jurisdictions.  

Minnesota Housing will administer a competitive grant process in 2025, prioritizing projects based on selection criteria outlined in the Request for Proposals (RFP) process. $4.5 million is available through the program for 2025, with a minimum award size of $25,000. Funds can be used for a range of rental, homeownership and housing stability activities. 

For additional details on the program, read the program guide.

The Bring It Home Rental Assistance Program, also referred to as “Bring It Home”, is a new program to create rental assistance for low-income families across Minnesota. Funded by state appropriations and a new metro sales tax for housing, the program will provide grants to Program Administrators who will administer the program as direct assistance for renter households. 

A Program Administrator is:

• Housing Choice Voucher (HCV) administrator: A Housing and Redevelopment Authority (HRA) or other local government agency or authority that administers federal tenant-based or project-based assistance under Section 8 of the United States Housing Act of 1937;
• Tribal Entity: A Tribal government or Tribal Designated Housing Entity; or
• Nongovernmental Organization: If there is no entity in either category above with the capacity or authority to administer the program, a nongovernmental organization determined by the Minnesota Housing to have the capacity to administer the program.

Program Administrators will provide tenant- and project-based rental assistance for cost-burdened households earning 50% area median income (AMI) or less. Priority for rental assistance shall be given to households earning under 30% AMI that include children.

For more information about Bring It Home, please refer to the Program Guide.

Minnesota Housing anticipates releasing a Request for Proposals for Program Administrators to apply for grant funds in early 2025.  Look up initial minimum grant amounts.

The Lead Safe Home Grants program will make homes safer through lead testing and hazard reduction.

Available for nonprofits and local governments, the program:

• Allows funding to be used for risk assessment and remediation of lead hazards
• Prioritizes areas with a high concentration of children with lead poisoning
• Requires 50% of units in multifamily properties to be occupied by renters at or below 60% area median income
• Allows up to 10% of award to be used for administration, education and outreach about lead hazards

The $4 million one-time appropriation and this program are known as the Dustin Luke Shields Act.