Minneapolis Boosts Affordable Housing & Shelter Beds
As winter approaches, Minneapolis is taking significant steps to address housing affordability and homelessness. The City Council has committed over $14 million, supplemented by $1.7 million in federal housing tax credits, to fund 11 affordable rental housing projects, creating nearly 600 new homes for residents across the city.
A Major Investment in Affordable Living
This substantial financial injection targets a diverse range of Minneapolis residents, including families, seniors, and individuals transitioning out of homelessness. The city’s proactive stance is designed to accelerate the development of much-needed affordable housing options, setting a national example for scale and pace.
Mayor Frey’s Vision and Expanded Shelter Support
Mayor Jacob Frey highlighted the impact of these initiatives, stating, “We’re out front, building affordability at a scale and pace that put us on the national map. These investments mean hundreds more people housed, more families stable and a city that’s leading by example.” Beyond new homes, the city is also adding 126 new shelter beds and 123 dedicated housing units for the homeless population, reinforcing its commitment to a robust support network.
The Impact of the Affordable Housing Trust Fund (AHTF)
The Affordable Housing Trust Fund (AHTF) program, powered by both federal and local funds, has been a cornerstone of Minneapolis’s housing strategy. Since 2011, the AHTF has allocated nearly $183 million to various housing initiatives. Notable projects already operational or nearing completion include Valiance Apartments and Shelter, the Minnesota Indian Women’s Resource Center, Kyle Garden Square, and Simpson Apartments and Shelter.
A Collaborative Approach to Winter Warming
In a crucial partnership with Hennepin County, the city’s efforts complement the county’s Winter Warming program. This collaboration adds 133 shelter beds, with eight specifically at Valiance, ensuring adequate facilities for those experiencing housing insecurity. A particular focus remains on supporting families with children during the colder months.
Strict Criteria for Sustainable Development
All projects receiving AHTF funding must meet rigorous eligibility criteria. At least 20 percent of the units must be accessible to households earning no more than 50 percent of the area median income (AMI). The competitive application process evaluates financial viability, project readiness, design quality, and the potential for long-term success. Among the projects funded in the 2025 round are Clare 5 Apartments (Ward 1), Lindquist Apartments (Ward 5), and the Flour Exchange (Ward 7), each tailored to community needs.
Tracking Progress: The Way Home Report
The city’s annual Way Home Report provides a comprehensive overview of these housing and homelessness initiatives. The report spanning 2022 to 2024 reveals a steady increase in investment, totaling $400 million since 2018. Elfric Porte, City of Minneapolis housing director, underscored the importance of this sustained effort: “We want to help our neighbors by providing resources and housing where and when they need it most. As we head into the winter months, it’s important to keep people in the forefront of our efforts.”
| Initiative/Period | Investment/Allocation | Key Outcomes/Impact |
|---|---|---|
| Current Allocation (2025) | $14M (City) + $1.7M (Federal Tax Credits) | ~600 affordable homes, 126 new shelter beds, 123 new housing units for homeless |
| AHTF Program (Since 2011) | ~$183M | Funding for numerous affordable housing projects across Minneapolis |
| Overall City Investment (Since 2018) | ~$400M | Significant, sustained increase in housing and homelessness initiatives |
Frequently Asked Questions
- What is the total new investment announced?
Minneapolis City Council approved over $14 million, complemented by $1.7 million in federal housing tax credits. - How many new affordable homes are expected from this initiative?
The plan is projected to secure nearly 600 affordable homes. - Who primarily benefits from these new housing projects?
A wide spectrum of residents, including families, seniors, and individuals transitioning out of homelessness. - What is the Affordable Housing Trust Fund (AHTF)?
It’s a program that allocates federal and local funding for housing initiatives, having invested nearly $183 million since 2011. - How is the city addressing homelessness specifically during winter?
In partnership with Hennepin County’s Winter Warming program, the city is adding 133 shelter beds, focusing on families with children.
These comprehensive investments underscore Minneapolis’s dedication to ensuring stable and affordable housing for its residents, especially as the colder seasons set in.
Minneapolis Boosts Affordable Housing and Shelter Beds
