Preservation Framework for the Targeted Stabilization of Regulated Affordable Housing

The 2025 legislative session included direction for Minnesota Housing to develop the Preservation Framework for the Targeted Stabilization of Regulated Affordable Rental Housing (Minnesota Session Laws 2025, chapter 32, article 3, section 14).

Public Comment Period: January 20, 2026 - February 3, 2026

Minnesota Housing is requesting public comment on the Preservation Framework for the Targeted Stabilization of Regulated Affordable Rental Housing (Preservation Framework). The document will be available for review and comment from Tuesday, January 20, through Tuesday, February 3, 2026.

Instructions for submitting comments will be posted when available.

Background

Preserving existing affordable rental housing is a longstanding core component of Minnesota’s housing policy. While new construction remains important, the loss of affordable housing due to physical deterioration, expiring affordability restrictions, or market pressures continues to increase housing need across the state.

In February 2025, the Task Force on Long-Term Sustainability of Affordable Housing recommended additional, coordinated work focused on preservation. During the 2025 legislative session, the Minnesota Legislature authorized Minnesota Housing to develop the Preservation Framework for the Targeted Stabilization of Regulated Affordable Rental Housing.

Purpose of the Preservation Framework

The Preservation Framework is intended to support the long-term stabilization and preservation of regulated affordable rental housing, the organizations that own and operate this housing, and the residents who live in these buildings.

To the extent practicable, the Preservation Framework identifies and examines:

Strategies, tools, and funding mechanisms to support targeted stabilization of affordable rental housing and recapitalization of distressed properties;
Options for temporary or permanent modifications to financing and regulatory terms and conditions, which may include changes to compliance requirements such as rent and income limits;
Potential improvements to processes and programs that are critical to the operations of permanent supportive housing including but not limited to coordinated entry, front desk and service funding, and relief options if there is a lack of identified service dollars or service providers;
Strategies for asset management to support long-term stabilization of regulated affordable housing;
State statutory changes needed to support or enable identified strategies;
Options for tenant protections that may be needed during stabilization efforts; and
Considerations for protecting public resources and abiding by legal requirements.

Role of Minnesota Housing, Development Process, and Ongoing Work

Minnesota Housing is responsible for leading the development of the Preservation Framework and is serving as a convener, researcher, and policy integrator. The Framework is intended to function as a shared resource for jurisdictions and partners across Minnesota, rather than as an implementation plan solely for Minnesota Housing.

The Preservation Framework builds on Minnesota’s existing preservation experience and was developed through engagement with a broad range of stakeholders, including affordable housing developers, property owners and managers, public agencies, supportive service providers, lenders, advocates, and other partners. It also reflects lessons from prior preservation initiatives in Minnesota and research from similar efforts in other states.

While Minnesota Housing may lead or support implementation of certain strategies within its statutory authority and available resources, other recommendations fall within the authority of different agencies, local governments, or partner entities. Implementation is expected to occur over time.

Consistent with legislative direction, Minnesota Housing will deliver the Preservation Framework to the Legislature by February 15, 2026.