Minnesota Housing invests $8 million to preserve affordable homeownership opportunities

ST. PAUL, Minn. — Minnesota Housing is investing $8 million to preserve 34 existing homes as affordable homeownership opportunities in communities across the Twin Cities metropolitan area.

The funding comes through Minnesota Housing’s Community Stabilization – Naturally Occurring Affordable Housing Single Family Program. The program helps preserve existing homes by supporting their acquisition, rehabilitation and resale to income-eligible homebuyers earning up to 115% of the area median income.

“Preserving the homes we already have is an important part of addressing Minnesota’s housing needs,” said Minnesota Housing Commissioner Jennifer Ho. “These investments can keep homes within reach of families, strengthen neighborhoods and create opportunities for more Minnesotans to build stability and wealth through homeownership.” 

The $8 million will support two organizations: 

Land Bank Twin Cities, Inc. – $5.92 million

Land Bank Twin Cities will receive funding to preserve 26 homes in Hennepin, Ramsey and Anoka counties through its Strategic Acquisition for Community Ownership program. The organization plans to acquire investor-owned properties and transition them to affordable homeownership opportunities for households earning up to 115% of the area median income. 

The program is also designed to minimize displacement of people currently renting the properties. When an acquired home is occupied, Land Bank Twin Cities may maintain it as a rental before its eventual sale, depending on the tenant’s needs, rehabilitation requirements and other factors.

PRG, Inc. – $2.08 million 

PRG will receive funding to rehabilitate eight homes in communities across Hennepin, Anoka and Ramsey counties before they are made available to income-eligible homebuyers. Rehabilitation may include improvements to kitchens and bathrooms, building exteriors, energy-efficient mechanical systems and appliances, as well as work addressing lead, asbestos, radon, water quality and other health and safety concerns.

PRG will serve households at or below 115% AMI and intends to place 30-year deed restrictions on the homes to preserve their affordability over the long term.  

About the Community Stabilization Program 

The Community Stabilization Program was created under the leadership of Governor Walz during the historic 2023 legislative session with a one-time appropriation to preserve naturally occurring affordable housing. Minnesota Housing received five proposals requesting nearly $14.9 million through the 2026 funding round. Following its review, the Agency is recommending partial funding for two proposals, using the program’s full $8 million appropriation.

The program prioritizes projects that respond to market pressures or significant rehabilitation needs that could lead to displacement or the loss of affordable owner-occupied homes. It also considers projects’ ability to serve lower-income households, maintain affordability, reach underserved communities and help low- and moderate-income households achieve homeownership.

The funding selections are subject to Minnesota Housing Board approval and individual grant contract requirements.