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Workforce Housing Development Program

This competitive funding program targets small to mid-size cities in Greater Minnesota with rental workforce housing needs. Funding is available to build market rate residential rental properties in communities with proven job growth and demand for workforce rental housing. Communities are required to secure matching funds, one dollar for every two dollars in funding offered through the program. This program was previously administered by the Department of Employment and Economic Development (DEED) and is now administered by Minnesota Housing.

Who Can Apply

Eligible applicants must satisfy the following requirements:
  • Must be an eligible project area (generally small and medium sized cities in Greater Minnesota)
  • Must be working with a developer
  • Must have a viable proposal for the development of a Market Rate Residential Rental Property, which can include mixed income.
Note: Minnesota Housing will not review applications submitted by developers.

Eligible Recipients/Project Area

An eligible recipient is an eligible project area. An eligible project area is either:
  • a home rule charter or statutory city located outside of the metropolitan area with a population exceeding 500;
  • a community that has a combined population of 1,500 residents located within 15 miles of a home rule charter or statutory city located outside the metropolitan area; or
  • an area served by a joint county-city economic development authority.
Note: Eligible project areas with fewer than 30,000 people will be given preference.
More detailed information can be found in the FAQs.

New Funding Term Option

As a result of recent legislative changes, Minnesota Housing is able to offer more flexible funding terms to better meet the needs of Greater Minnesota communities who want to expand workforce housing in their communities. We have added a deferred loan option available to eligible applicants applying to the Workforce Housing Development Program. Applicants can request either grant funds or an interest-free, deferred loan and must indicate at the time of application which form of funding you are requesting. See the updated FAQs for more information about the two funding options.

Apply for Funding

Application Materials

For Reference Only

Application Due Date

Applications are due no later than 4:30 p.m. CST, Thursday, January 25, 2018. We expect to make recommendations to the Minnesota Housing board in March 2018.




In early November, Minnesota Housing Hosted a webinar detailing the Workforce Housing Development Program. Watch the recording of the webinar, (50:45) and download the presentation notes. This training does not include information about the deferred loan option. See the Program Guide and FAQs for details on the two funding options.


Katie Moore: 651.296.6354 or