Local Government Housing Programs

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.

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

$8 million is allocated to the Greater Minnesota Housing Infrastructure Grant program to support cities, counties and Tribal Nations creating sites for workforce and affordable housing in Greater Minnesota.

Grant funds can be used to cover up to 50% of capital costs of physical public infrastructure necessary to support a qualifying housing development. This may include sewers, water supply systems, utility extensions, streets and more, necessary to support single-family, multifamily, homeownership and rental housing development.

• Grants are generally limited to:
• $40,000 per lot for one to four units
• $180,000 per lot for multifamily housing (five or more units/building)
• $60,000 per manufactured housing lot
• No more than $500,000 to any grantee or project over a two year period.

Applicants’ matching funds may include in-kind contributions, such as donation of land.

For additional details on the program, please review the program guide.

Minnesota Housing plans to release a Request for Proposals in the first quarter of 2025. 

The Local Affordable Housing Aid and Statewide Affordable Housing Aid helps municipalities develop and preserve affordable housing within their jurisdictions. With the exception of Tier II Cities Grands, funds do not pass through Minnesota Housing.

The Minnesota Department of Revenue will distribute aid directly to jurisdictions:

• For metropolitan local governments, visit Revenue's Local Affordable Housing Aid (LAHA)
• For counties, Tribal governments and greater Minnesota local governments, visit Revenue's Statewide Affordable Housing Aid (SAHA)

Jurisdictions receiving aid are required to report their use of these funds to Minnesota Housing starting in 2025. Additional guidance will be provided on this process.

SAHA/LAHA Panelist Discussion: Housing Development and Housing Preservation Recording | Presentation (August 22, 2024)
SAHA/LAHA Panelist Discussion: Emergency Rental Assistance and Housing Stability Recording | Presentation (August 21, 2024)
Read answers to frequently asked questions about LAHA and SAHA.

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.