Board approves $50.6 million to preserve nearly 2,600 affordable rental homes

ST. PAUL, Minn. — Minnesota Housing announced today that its board approved $50.6 million to help preserve and stabilize 35 distressed multifamily rental properties across the state, protecting 2,595 affordable homes for Minnesotans. 

“Every Minnesotan deserves a safe, stable and affordable place to call home. This investment will help preserve nearly 2,600 affordable rental homes across Minnesota, keeping families, older adults, veterans, people with disabilities and neighbors connected to the communities they love,” said Lieutenant Governor Peggy Flanagan. “By stabilizing these homes now, we are helping more Minnesotans stay housed and build the security they need to thrive.”

The funding comes through the Community Stabilization: Distressed Multifamily Rental Building Program, which supports existing affordable rental properties that are facing financial or physical challenges. This one-time program helps owners address needs such as building repairs, operating costs and supportive housing services. 

“Every one of these homes represents stability for a Minnesotan, a family, a neighbor and a community,” said Minnesota Housing Commissioner Jennifer Ho. “Preserving affordable housing is one of the most important things we can do to keep people in their homes, connected to their communities.” 

The selected projects include 22 grants totaling $35.7 million and 13 loans totaling $14.9 million. Of the 2,595 homes supported, 1,245 are in properties where 100% of units are supportive housing. In total, more than $31.1 million will support properties comprised entirely of supportive housing. Supportive housing is affordable homes for people who have experienced homelessness, paired with services that support long-term housing stability. 

“We are deeply grateful to Minnesota Housing for recognizing the importance of investing in Greater Minnesota properties through the Community Stabilization program,” said Southwest Minnesota Housing Partnership Chief Operating Officer Kristie Blankenship. “For smaller affordable housing developments like Rock Creek Townhomes in Luverne, these funds are critical to making much-needed rehabilitation possible at a time when rising insurance costs, inflation and severe weather are putting increasing pressure on operating budgets.” 

Funding will support homes in Greater Minnesota and the Twin Cities metro area, including properties in Braham, Cannon Falls, Edina, Fort Snelling, Luverne, Minneapolis, Red Lake, St. Paul and Sandstone. 

The program is designed to help preserve existing affordable housing that may otherwise be at risk due to foreclosure, closure, sale, negative operating income, debt challenges or significant repair needs. Eligible buildings must have at least eight units, serve households with incomes at or below 60% of area median income and have affordability requirements already recorded. 

“We are incredibly grateful to Minnesota Housing for awarding Catholic Charities Twin Cities grants for three of our supportive housing buildings under this program. These awards will be critical to our continued ability to offer dignified housing and supportive services to nearly 550 residents in both St. Paul, at Dorothy Day Residence and Higher Ground Saint Paul Residence, and Minneapolis at Endeavors Residence,” said Jamie Verbrugge, President & CEO, Catholic Charities Twin Cities “The supportive housing system is under strain. Minnesota Housing’s investments at this crucial point in time will be instrumental in helping thousands of Minnesota’s most vulnerable residents remain in their homes.”

All loan funding selections are subject to final underwriting, due diligence and program requirements. All grant contracts are subject to due diligence and the terms and conditions of the Grant Contract Agreement.