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Local Government Housing Programs

The Local Government Housing Programs team administers funding to support local and Tribal governments as they finance the development of affordable and workforce rental and single-family housing, provide rental assistance and advance other initiatives to meet local housing needs in their communities.

Four new programs launched in 2025:  The Local Housing Trust Fund Grants Program, Greater Minnesota Small Cities (Tier II Cities) Housing Aid Grant Program, Bring It Home Rental Assistance and the Greater Minnesota Housing Infrastructure Grant Program.

The Local Government Housing Programs team is also responsible for collecting annual reports from recipients of Local and Statewide Affordable Housing Aid.

Look for further updates and information, including about new funding, to be added to this page as it becomes available.  

Current Funding Available

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Available Funding

2026 Greater Minnesota Small Cities (Tier II Cities) Housing Aid Grant Program
Request for Proposal (RFP) Application Materials

Request for Proposal (RFP) Application Materials 

The Greater Minnesota Small Cities (Tier II Cities) Housing Aid Grant Program RFP application is open Monday, December 15, 2025 through Friday, January 23, 2026. Grant recipients will be selected at the May 2026 Minnesota Housing board of directors meeting.

Program Information

About the Program

This program is designed to aid smaller Greater Minnesota cities (those outside the seven-county Twin Cities metro area with fewer than 10,000 residents) to develop and preserve affordable and workforce housing. Up to $1.25 million is available for the 2026 RFP. 

Only city governments representing cities of fewer than 10,000 residents outside the seven-county Twin Cities metro are eligible for this program.

You may wish to review the Program Guide for more information.

You may send questions to tier2cities.mhfa@state.mn.us.  

Eligible Applicants

Eligible Applicants

Only city governments representing cities of fewer than 10,000 residents outside the seven-county Twin Cities metro are eligible for this program. 

Funding Awarded in 2025

Bring It Home Rental Assistance

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. 

Learn more about the Bring It Home Rental Assistance Program. 

Local Housing Trust Fund Grants Program
Request for Proposal (RFP) Application Materials (Application Closed)

The Local Housing Trust Fund Grants Program RFP application closed on Wednesday, March 19, 2025. Selected applications were approved by the Minnesota Housing board of directors in May 2025.

Program Information

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. 

Eligible Applicants

The following entities are eligible to apply for the Local Housing Trust Fund Program:

Eligible entities must have an existing Local Housing Trust Fund at the time of application as defined by Minnesota Statute 462C.16, or as otherwise authorized by law. 

Current Grantee Forms

Local Housing Trust Fund Program Fillable Disbursement Form

Greater Minnesota Housing Infrastructure Grants
Request for Proposal (RFP) Application Materials (Application Closed)

Request for Proposal (RFP) Application Materials 

The Greater Minnesota Housing Infrastructure Grant Program RFP application closed on Thursday, June 12, 2025. Selected applications were approved by the Minnesota Housing board of directors in October 2025.

Program Information

$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. 

Eligible Applicants

The following are eligible applicants for the Greater Minnesota Housing Infrastructure Grants Program:

  • Cities and counties located in Minnesota outside the seven-county Twin Cities metropolitan area (Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington);
  • The cities of Northfield, Cannon Falls, Hanover, Rockford and New Prague; and,
  • Any federally recognized Tribal Nation in Minnesota or its associated Tribally Designated Housing Entity.
Greater Minnesota Small Cities (Tier II Cities) Housing Aid Grant Program

The 2025 Greater Minnesota Small Cities (Tier II Cities) Housing Aid Grant Program Request for Proposals closed on April 24, 2025. Thirty-three proposals were selected for $4,090,000 in grant funding by the Minnesota Housing board of directors in August 2025. 

Programs Under Development

Lead Safe Homes Grants Program (anticipated 2026 RFP)

The Lead Safe Home Grants program will make homes safer through lead testing and hazard reduction.

Available for nonprofits and local governments, the program:

  • Allows funding to be used for risk assessment and remediation of lead hazards
  • Prioritizes areas with a high concentration of children with lead poisoning
  • Requires 50% of units in multifamily properties to be occupied by renters at or below 60% area median income
  • Allows up to 10% of award to be used for administration, education and outreach about lead hazards

The $4 million one-time appropriation and this program are known as the Dustin Luke Shields Act.

Local and Statewide Affordable Housing Aid

Resources

Local Affordable Housing Aid and Statewide Affordable Housing Aid help municipalities and Tribal Nations develop and preserve affordable housing. Except for grant funds available through the Greater Minnesota Small Cities (Tier II Cities) Housing Aid Grant Program, funds are distributed by the Department of Revenue, not by Minnesota Housing. Starting in 2025, aid recipients must report their use of these funds to Minnesota Housing each year by December 1. 

Learn more about Local and Statewide Affordable Housing Aid.