Minneapolis Boosts Affordable Housing and Homelessness Support

As winter approaches, Minneapolis has launched a significant initiative to address housing affordability and homelessness. The City Council is injecting over $14 million, alongside federal tax credits, to create nearly 600 affordable homes and expand shelter capacity for those most in need.

A Multi-Million Dollar Investment for Housing

The Minneapolis City Council has approved a strategic allocation of over $14 million, complemented by $1.7 million in federal housing tax credits. This substantial funding is earmarked for 11 affordable rental housing projects across the city. The goal is to develop nearly 600 new affordable homes, benefiting a diverse group of Minneapolis residents including families, seniors, and individuals transitioning out of homelessness. Mayor Jacob Frey commended the city’s proactive stance, 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.”

Expanding Support for the Homeless Community

Beyond new housing developments, the city is also bolstering its support network for individuals experiencing homelessness. Plans include the addition of 126 new shelter beds and 123 new housing units specifically designed for the homeless population. This initiative works in tandem with Hennepin County’s Winter Warming program, contributing 133 additional shelter beds, with eight of these located at the Valiance Apartments and Shelter. This comprehensive approach underscores Minneapolis’s commitment to ensuring adequate shelter, especially for families with children during the colder months.

The Role of the Affordable Housing Trust Fund (AHTF)

The Affordable Housing Trust Fund (AHTF) program, which relies on both federal and local funding, has been a cornerstone of Minneapolis’s housing strategy. Since 2011, the program has channeled nearly $183 million into housing initiatives. Notable success stories from previous funding rounds include the Valiance Apartments and Shelter, the Minnesota Indian Women’s Resource Center, and Kyle Garden Square, all of which are now operational. The Simpson Apartments and Shelter are also nearing completion and ready to welcome residents.

Project Selection and Impact

Projects seeking funding through the AHTF program must meet rigorous eligibility criteria. These include ensuring at least 20 percent of units are available to households earning no more than 50 percent of the area median income (AMI). The competitive application process evaluates factors such as financial viability, project readiness, design quality, and the potential for long-term success. Among the projects awarded in the current 2025 round are Clare 5 Apartments in Ward 1, Lindquist Apartments in Ward 5, and the Flour Exchange in Ward 7, each tailored to address specific community needs.

Tracking Progress: The Way Home Report

The city’s annual Way Home Report provides a transparent look at the progress and impact of these housing and homelessness initiatives. The report for 2022-2024 highlights a steady and significant increase in investment since 2018, totaling $400 million. Elfric Porte, the City of Minneapolis Housing Director, emphasized the importance of continuous 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.”

Key Investments in Housing and Homelessness

Frequently Asked Questions

• What is the main purpose of this new funding?
  The funding aims to boost affordable housing development and expand shelter and housing options for people experiencing homelessness in Minneapolis.
• How many new affordable homes will be created?
  The plan is projected to secure nearly 600 new affordable homes across 11 rental housing projects.
• Are there specific resources for families experiencing homelessness?
  Yes, the city is committed to expanding adequate shelter facilities, particularly for families with children facing housing insecurity.
• What is the Affordable Housing Trust Fund (AHTF) program?
  The AHTF is a city program utilizing federal and local funds to invest in affordable housing initiatives, having allocated nearly $183 million since 2011.

This significant investment highlights Minneapolis’s ongoing dedication to creating a more stable and equitable city for all its residents, especially as the colder months approach. Stay informed about these initiatives through local city updates and reports.

Minneapolis funds new affordable homes and shelters