Capacity Building Program

The organization builds its own capacity to lead efforts to advance housing goals, solve a housing problem, or address a housing gap in the community. Through these efforts, the organization will build collaborations, strengthen communities, facilitate lived experience voices in leadership and decision-making and/or advance housing innovation. As a result of this work, the organization will position themselves to be stable over the long term.

Some examples include:

• Pilot projects to test creative solutions to housing challenges
• Building knowledge, strategies and partnerships to advance an innovative housing concept
• Community engagement, education and leadership development to facilitate community-led decision-making to meet a housing need

The Intermediary uses their expertise and relationships to build others' skills and abilities to advance housing goals, addressing housing problems or fill housing gaps in the community. The Intermediary will do so by providing sub-grants and/or technical assistance to communities, organizations or individuals. Those facing housing challenges and disparities will ultimately benefit as a result of the Intermediary's capacity building efforts.

Some examples include:

• Providing technical assistance to a community-based organization to increase organizational capacity to engage in housing development and planning activities through strengthening internal policies and technical skills
• Subgrants to hire a consultant for a housing-related need
• Develop training and technical assistance on an innovative housing topic or strategy

• 501(c)(3) Tax-exempt nonprofit organizations:
  • Must have an active registration and be in good standing with the Minnesota Secretary of State
• Tribal governments and Tribal business entities

Additionally, eligible entities must have been in operation for at least one calendar year as of the date of the Capacity Building Grant RFP application deadline. This will be demonstrated by the applicant's filing date with the Minnesota Secretary of State. See the 2026 Capacity Building RFP Instructions for complete details.

• Non-Tribal government entities, for-profit businesses and educational institutions are ineligible to apply.

NOTE: Entities that are not eligible to apply as a lead applicant can receive funding as subgrantees or consultants. This would include for-profit businesses and the other entities that are listed as ineligible applicants.

Examples of eligible uses include, but are not limited to:

Organizational Capacity Building:

• Pilot projects that test creative solutions to housing challenges.
• Initiatives that address a housing gap or lack of housing access facing a region, community or constituency.
• Developing knowledge, strategies and partnerships to advance innovative housing ideas and models.
• Community engagement, education, and leadership development that support community-led decision-making and advocacy.
• Building partnerships and collaborations to strengthen networks, advance equity, and address housing needs.
• Building an organization's capacity to more comprehensively meet the housing needs of those they serve.
• Providing information on housing rights and responsibilities.
• Building more community and systematic support for housing development and housing access.

Intermediary Capacity Building

• Leadership development for people with lived expertise to participate in decision-making that affects housing planning and housing stability.
• Providing technical assistance and education to entities such as community-based organizations, cities or individuals to build their capacity to engage in housing development and planning activities.
• Providing subgrants to other entities so they can build their capacity to ultimately meet community needs through activities such as hiring consultants, purchasing technology and attending tranings.
• Providing training and technical assistance on an innovative housing topic or strategy.
• Community planning activities such as convening a variety of local constituencies to identify housing needs and priorities, informing them about development processes, and creating a housing plan and advocacy priorities.

• Housing development and pre-development costs
• Costs associated with applying to Minnesota Housing Request for Proposals
• Direct client services, medical services, mental health and recovery services
• Providing homeownership counseling, financial coaching and foreclosure counseling to individuals
• Building operations such as property management, front desk staff and/or security expenses
• Financial assistance to individuals including rental assistance, affordability gap or downpayment assistance
• Direct political activities such as endorsing or campaigning for political candidates
• Shelter planning and/or services
• Transitional housing planning and/or services
• Group homes and assisted living planning and/or services
• Scholarships

• Salary, wages and fringe benefits of staff working directly on grant activities
• Training
• Consultant expenses
• Stipends for community participation, if applicable
• Travel expenses including mileage, lodging and meals as outlined in the Nonrepresented Employees Compensation Plan for expense reimbursement by Minnesota Management and Budget
• Conference expenses
• Meeting expenses including venue rental, food and handouts
• Supplies, copies and postage directly related to the program
• Items necessary to carry out grant activities

Applications may utilize up to 15% of the Capacity Building grant for administrative expenses.