Minnesota Housing Announces $166.4 Million for Housing Developments across the State

SAINT PAUL, MINNESOTA — On Thursday, the Minnesota Housing board of directors selected 51 housing developments totaling more than $166.4 million in state investments. The developments will support the creation and preservation of 1,424 single-family homes and apartments. The projects represent more than $550 million in total development costs and will support 4,700 jobs.

“These resources are helping us make real progress on Minnesota’s housing shortage. Because of these approved projects, hundreds of families will soon be able to call one of over 800 newly built apartments home,” said Lieutenant Governor Peggy Flanagan. “And we’re preserving existing housing so it stays safe, affordable and in good repair. No matter your ZIP code, Minnesotans deserve a place they’re proud to call home, and this project gets us one step closer.”

In addition to state dollars, the housing developments will be financed with federal resources such as housing tax credits amounting to $218 million in equity proceeds. Minnesota Housing also allocates $22 million from the federal HOME Investment Partnership and National Housing Trust Fund programs.

Minnesota Housing announced its project selections at Torre de San Miguel, a 142-townhome community on the West Side of St. Paul that was selected for funding. Owner and nonprofit developer CommonBond Communities learned it was selected for $5.5 million in preservation funds to improve the 1970s townhomes and community buildings at the site.

“I want to thank the legislators who said ‘yes’ to housing and made today possible,” said Minnesota Housing Commissioner Jennifer Leimaile Ho. “Together we celebrate CommonBond and other developers like them as they invest to improve the quality of life in vibrant communities like Torre de San Miguel.”

Highlights of the Rental Housing Selections

Minnesota Housing selected 20 multifamily developments to support a total of 1,145 rental units. The projects are split between Greater Minnesota and the seven-county Twin Cities metro. Of the 1,145 rental units, 816 will be newly constructed and 329 are existing affordable units that will be preserved.

Many of the rental properties are for specific populations, such as 233 units designated for seniors, 73 units exclusively for people with disabilities, and 169 units for people who have experienced homelessness or need supportive services.

Highlights of the Homeownership Selections

In the homeownership area, the board approved 31 projects supporting a total of 279 single-family homes. Of these, 52 homes will be new construction. Minnesota Housing also provides funding for owner-occupied rehabilitation, acquisition, rehabilitation and resale, and downpayment assistance to make homeownership more affordable across the state.

One of the successful applicants for single-family funding is Habitat for Humanity of Minnesota, which sponsored three successful Habitat applications around the state for communities including Virginia and Fergus Falls. The $910,000 will support 20 single-family homes with funds to make them affordable to new homebuyers.