Cities Encouraged to Apply for MHFA Workforce Housing Grants

Small and mid-sized cities in Greater Minnesota have until Oct. 11 to submit an application.
(Published Aug 13, 2018)

Up to $1.9 million in grant or deferred loan funds are available to build market-rate residential rental properties in communities with proven job growth and demand for workforce rental housing. The Minnesota Housing Finance Agency (MHFA) is accepting applications until 4:30 p.m. on Oct. 11.

—Learn more and apply for this grant

Minimum application requirements

  • Projects must expand workforce housing in the community.
  • Projects must certify that the community has a vacancy rate at or below 5 percent.
  • Projects must submit a letter of support from a local business that employs a minimum of 20 full-time employees in aggregate.
  • Projects must provide a local government resolution that states matching funds from the local government, a nonprofit organization, or a business have been committed and, at a minimum, match $1 for every $2 requested.
    • The developer or an entity affiliated with the developer cannot be the source of matching funds.
    • Preference will be given to applicants who have a match commitment higher than the statutory minimum of $1 for every $2.
  • Funds requested cannot exceed 25 percent of the rental housing development project costs of the project.
  • Projects must demonstrate that construction will begin within 12 months of grant contract execution.

Upcoming trainings

There are two opportunities to learn about the program and how to apply:

League involvement

Establishing tools for cities to help them develop workforce housing has been a League legislative priority for the past several years. These efforts focused on communities that had dramatic market-rate housing shortages despite a growing job market, and employers who want to expand.

In previous sessions, a successful pilot program led to the statewide grant program that was originally established under the Department of Employment and Economic Development (DEED) and is now administered by MHFA. (Read more about these efforts.)

Read the current issue of the Cities Bulletin

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