News: Hennepin County approves record $17.1M for affordable housing projects

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Hennepin County Minnesota

FOR IMMEDIATE RELEASE

Contacts:

Kyle Mianulli, Communications, 612-280-9252

Carolyn Marinan, Communications, 612-910-9111

 

Hennepin County approves record $17.1M for affordable housing projects

On Tuesday, May 11, the Hennepin County Board of Commissioners, acting as the Housing and Redevelopment Authority, approved $17.1 million to support 27 affordable housing and development projects—the largest amount of funding ever awarded by the board at once to support affordable housing.

These awards represent more than double the amount of county funding available for affordable housing as recently as 2018.

 

27 projects will support 1,550 units of affordable housing, related services and programs

The historic action will help to create or maintain 2,270 units of housing, including 1,550 affordable units, of which 360 will be affordable to households with the lowest incomes earning less than 30% of the Area Median Income, or about $31,450 for a four-person household.

Funding will also support a wide range of housing services such as rent assistance, predevelopment assistance, community development and infrastructure projects.

Chris LaTondresse, Hennepin County District 6 Commissioner and Chair of the Housing and Redevelopment Authority, said:

“This is a historic investment to match the unprecedented challenges we face with affordable housing. Not only is this the largest amount of funding we’ve ever awarded at once to support affordable housing, it also represents a new direction for how Hennepin County is working to confront the affordable housing crisis.

“Our communities are facing compounding crises in housing, homelessness, income, public health and public safety. The effects of these crises disproportionately impact communities of color.

“Now is the time for government to step up and take bold, innovative action to meet these challenges. Now is the time to invest in our communities so all our residents can share in the prosperity and quality of life our region is known for.”

 

Advancing strategies to grow housing for those with the lowest incomes

To advance Hennepin County’s strategy to grow housing options affordable to households at the lowest income levels, the HRA is piloting two new tactics. For the first time ever, the county is offering a 15-year annual subsidy for CommonBond’s Rise on 7 project to reduce rents from 60% AMI to 30% AMI for 19 units.

The county is also piloting a new pre-development technical assistance strategy to work closely with developers and service providers early and throughout the planning and development process to build a pipeline of supportive housing projects that serve target populations.

 

Award details

Funding was awarded through five primary housing and development programs. Program and award details can be found below.

Supportive Housing Strategy

$5 million awarded to three projects designed to serve families involved with child welfare and people exiting mental health treatment, including:

  • 205 total affordable housing units
  • 198 units affordable at 30% AMI
  • Pilot technical/predevelopment support

Learn more about the awards

Learn more about the Supportive Housing Strategy

 

Affordable Housing Incentive Fund (AHIF)

$7.8 million awarded to 11 projects, including:

  • 708 total affordable housing units
  • 146 units affordable at 30% AMI
  • Pilot 30% AMI unit rental subsidy

Learn more about the awards

Learn more about the AHIF program

 

HOME Investments Partnership (HOME)

$2 million awarded to four projects, including:

  • 88 total affordable rental housing units
  • 16 units affordable at 30% AMI
  • Tenant-based rental assistance for 40 households

Learn more about the awards

Learn more about the HOME program

 

Transit Oriented Development (TOD)

$2.2 million awarded to eight projects, including:

  • 1,269 total units
  • 581 affordable units
  • More than 59,000 square feet of commercial and community space
  • Improved connections to support Transit Oriented Development in major transit corridors

Learn more about the awards

Learn more about the TOD program

 

Look for more news on the Hennepin County website at hennepin.us/news.

Discover how we're making a difference in our communities at hennepin.us/stories.