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 Housing (Minnesota Session Laws 2025, chapter 32, article 3, section 14). This direction followed the work of the Task Force on Long-Term Sustainability of Affordable Housing and reflects growing concern about the financial, physical and operational stress facing Minnesota’s existing affordable rental housing portfolio.
The Preservation Framework was delivered to the Minnesota Legislature on February 13, 2026.
Why This Work Matters
Minnesota has a long history of preserving affordable rental housing through coordinated public investment and cross-funder collaboration. While new construction remains essential to increase housing supply, preserving existing affordable housing is equally critical to maintaining stability for residents, communities and the broader housing system.
For residents, preservation directly affects housing stability and quality of life. Safe, stable and well-maintained homes support health, economic security and community connection. When properties experience financial or physical distress, residents may face uncertainty, declining conditions or the risk of displacement. Addressing stabilization needs early supports quality housing, protects long-term affordability and reduces disruption for households across the state.
Preservation also depends on a stable and sustainable affordable housing system and strong providers. System-wide pressures—including rising operating costs, insurance premiums, utility expenses, capital needs and other market factors—are affecting properties across the portfolio. These pressures strain property operations, reduce capacity and increase the risk of financial distress. When individual properties experience deterioration or instability, the impacts can extend beyond a single building. Stabilization challenges in one part of the portfolio can affect overall system performance and the long-term sustainability of public investment.
Although preservation activity is not new in Minnesota, current stabilization and preservation challenges are more complex than in prior decades. No single agency or funder can address these challenges alone. A more structured and shared approach supports collaboration, improves consistency and strengthens the overall preservation system.
Preservation Framework
Several jurisdictions across the country have developed preservation frameworks or similar documents. There is no single standard definition of what such a framework includes. Minnesota’s Preservation Framework provides a structured approach to organizing and strengthening existing preservation-related resources, with a focus on state tools and statutory authority, while identifying opportunities to improve the overall system.
The Preservation Framework is:
- An approach for understanding stabilization needs and structuring consistent, informed responses across properties and places;
- A compilation of existing tools, strategies and initiatives;
- A collection of proposed improvements and new approaches to address identified gaps and system-wide needs on funding, process and collaboration;
- A coordination mechanism that helps funders, owners and partners identify distressed properties and respond in a timely, strategic and appropriate manner; and
- A work in progress document that can and should evolve through collaboration, stakeholder input and changes in market conditions, property needs and program requirements.
The Preservation Framework is not:
- A single, prescriptive solution that can be uniformly applied to every property or situation;
- A guarantee of funding, regulatory relief or intervention for each distressed property, particularly when resources are limited or unavailable; or
- A substitute for locally defined priorities, ownership decisions or community-level planning processes.
The Framework was developed through stakeholder engagement sessions, consultation with housing providers and funding partners, review of research and national best practices, and decades of preservation experience in Minnesota.
Next Steps
The Preservation Framework is designed to function as a shared resource and to adapt over time. As market conditions change, new data becomes available and partners refine practices, the Framework can evolve to reflect emerging needs and opportunities.
While Minnesota Housing will lead recommendations that fall within its statutory authority and available resources, other recommendations involve the authority and participation of state agencies, local governments and funding partners.
The Preservation Framework represents an initial phase focused on documenting tools, clarifying roles and identifying system-level improvements. Continued collaboration among stakeholders will be necessary to establish priorities and align resources that reflect statewide and local needs. Implementation will occur at varying scales depending on legislative action, funding availability and partner capacity.