City of Minneapolis

The City of Minneapolis is pleased to announce the re-opening of the application process for Naturally occurring Affordable Rental Housing (NOAH) Preservation Fund Loans on today March 13, 2024. The NOAH Preservation Fund helps housing providers and emerging real estate developers acquire unsubsidized housing to preserve affordability and prevent displacement.

Learn more about NOAH Preservation Fund loans.

The application window will be open for six weeks and close at 4 p.m. on Wednesday, April 24, 2024.

During the application window:

• If we receive fewer than 4 qualified applications, we will extend the application window for another month.
• If we receive more than 4 qualified applications, we will evaluate and select a total of 4 projects that closely align with our program criteria.

• Should any of the4 selected projects not proceed, staff may evaluate whether any non-selected, qualified projects from the same application round can feasibly proceed to closing.

We are prioritizing applications with:

• Greater numbers of more deeply affordable units at or below 50% of the Area Median Income (AMI).
• A longer affordability term exceeding the minimum 10-year term.
• Smaller scale and emerging developers with ties to the neighborhood where the project is located.

Program benefits

• Assists eligible preservation buyers in the acquisition and preservation of NOAH rental property in Minneapolis at risk of increased rents.
• Protects low-income renters at risk of involuntary displacement.

  

Eligibility

All borrowers, including for-profit and non-profit entities are eligible to apply for funds. We strongly encourage emerging developers and non-profit developers to apply.

NOAH portfolios must contain:

• 75% or more units that are affordable to households making less than 80% of the Area Median Income (AMI).
• At least 20% of these units must be affordable to households making less than 60% of AMI.

We will focus on applications with a higher percentage of units at or below 60% AMI. We will also give priority to applications with at least some units below 50% AMI.

Application and loan approval process

 

All applicants must meet with City staff before applying. Please set up a pre-application meeting with NOAH Program staff by sending an email to noahpreservation@minneapolismn.gov. Staff are available to meet with prospective applicants starting March 13. Pre-application meetings will be scheduled up until April 24All applications must be submitted prior to the deadline on April 24.

When setting up the pre-application meeting, please be sure to include the address(es) of the property you plan to acquire. Before the pre-application meeting, please make sure to review these resources and complete a financial proforma to review at the meeting. :

• NOAH Program Process Diagram
• NOAH Fund Closing Checklist
• Must include the address(es) for the properties that will be acquired.

After the pre-application meeting, we will share the link to the NOAH Preservation Fund Application Portal with all applicants.