Grants and loans to Minnesota cities to develop housing units for local working residents. Funding is intended for communities in small- to mid-size cities with a demonstrated demand for rental housing needs and proven job growth. The rental properties would serve employees of businesses located in the Eligible Project Area or surrounding area. Eligible costs include the purchase of property; construction of improvements; and provisions of loans or subsidies, grants, interest rate subsidies, public infrastructure, and related financing costs. Eligible project areas with fewer than 30,000 people will be given preference. Preference will also be given to projects with a higher proportion of units that are not income-restricted. Eligible Project Areas are generally small and medium-sized cities in Greater Minnesota.
The purpose of the Program is to help finance Qualified Expenditures of project-specific costs resulting in the direct development of Market Rate Residential Rental Properties to address the lack of workforce housing in Greater Minnesota. Funds will be awarded as grants or deferred loans to cities and other eligible entities. Recipients will partner with developers to create new Market Rate Residential Rental Properties.All Recipients must maintain compliance with Program requirements through the term of the Deferred Loan Agreement or Grant Contact Agreement; however, Minnesota Housing strongly encourages Recipients to assess local housing needs beyond the initial funding term. Projects that remain available and affordable to the local workforce beyond the initial funding term will further strengthen the community by providing a long-term housing asset. Recipients are encouraged to look beyond the initial funding term to address local workforce housing needs into the foreseeable future.Eligible Uses of Funds:
Funds are available for Qualified Expenditures of project-specific costs resulting in the direct development of Market Rate Residential Rental Properties. The rental properties would serve employees of businesses located in the Eligible Project Area or surrounding area. Recipients or Subrecipients can award funds in the form of grants or loans. If Recipients or Subrecipients award funds as a loan, then the loan terms must be as set forth in section 3.03 of this program guide. In addition, fees or interest charged cannot unduly enrich any parties involved and must not exceed the estimated amount to cover administrative expenses of the Program.Eligible types of housing include new construction or acquisition and rehabilitation or reuse of an existing property that is not currently used for housing.grants for minorities

Leave a Reply

Your email address will not be published.