$4.5 million invested in workforce housing across Greater Minnesota

ST. PAUL, Minn. — Minnesota Housing is investing $4.5 million to help create 77 new rental homes in six Greater Minnesota communities, including four communities with populations under 2,000.

The investments through Minnesota Housing’s Workforce Housing Development Program (WHDP) will support projects in Bemidji, Elbow Lake, Fosston, Montevideo, Silver Bay and Winthrop. Together, the six developments represent more than $18.8 million in housing investment.  

“Housing is an important part of keeping communities strong and helping local economies grow, whether a community has 1,000 residents or 100,000,” said Minnesota Housing Commissioner Jennifer Ho. “These investments help Greater Minnesota communities create the homes they need for people who work at local businesses, schools, health care facilities and other employers.” 

WHDP is specifically designed to address workforce rental housing needs in small and midsized Greater Minnesota communities experiencing job growth and housing demand. The program provides deferred loans to help build new rental housing in places where the private market alone may not be able to support new development.  

Local communities and businesses also have a direct stake in the projects. WHDP requires at least $1 in matching funds for every $2 provided by Minnesota Housing. Applicants must also demonstrate local workforce housing needs through support from area employers.  

2026 Workforce Housing Development Program selections 

The six projects also reach communities throughout Greater Minnesota. At least one project is located in five of the state’s six Greater Minnesota regions: Northeast, Northwest, Southeast, Southwest and West Central.  

“Lake County has been working with the City of Silver Bay and the Iron Range Resources & Rehabilitation Board over the last four years to build workforce housing along Minnesota's North Shore,” said Matthew Johnson, Lake County HRA Director. “The Minnesota Workforce Housing Grant has closed the funding gap to make Silverpointe II Apartments become a reality. The 25 market rate units will bring much needed housing relief to employers large and small throughout the region."  

About the Workforce Housing Development Program 

The Workforce Housing Development Program helps small and midsized Greater Minnesota communities develop market-rate rental housing where there is demonstrated job growth, low rental vacancy and demand for workforce housing. Projects must have a rental vacancy rate of 5% or less for at least the previous two years and secure matching funds of at least $1 for every $2 requested from Minnesota Housing. The next round of the WHDP opens October 15.