Minnesota Housing approves $41.75 million to preserve Naturally Occurring Affordable Housing (NOAH) across Minnesota

ST. PAUL, MN – The Minnesota Housing Board of Directors has approved a slate of NOAH selections that will allocate $41,750,000 in state appropriations to preserve existing rental housing that is affordable without ongoing government subsidies. The funding supports developments in Greater Minnesota ($18.1 million) and in the Twin Cities metro ($23.7 million) and is expected to help stabilize 1,013 homes for Minnesotans.

NOAH generally refers to older rental properties with rents that are affordable due to market conditions, not because of government rent restrictions. Preserving NOAH helps keep homes affordable, address aging building needs, and reduce the risk of displacement for residents when properties change hands or require major repairs.  

“Preserving naturally occurring affordable housing is one of the most direct ways to protect affordability and strengthen community stability,” said Minnesota Housing Commissioner Jennifer Leimaile Ho. “This investment helps ensure more Minnesotans can live and thrive in safe, stable homes—both in Greater Minnesota and in the Twin Cities metro.” 

About the selections

Minnesota Housing issued the 2025 NOAH request for proposals on May 8, 2025. The agency received 29 applications requesting more than $92 million. Following eligibility review, scoring, and feasibility review, staff recommended 11 developments for further processing. The board approved the selections on January 22, 2026. Final awards are subject to underwriting, due diligence, and the NOAH Program Guide terms and conditions. 

Recommended developments and selection amounts are as follows:  

Greater Minnesota

• Faith Haven (Duluth) — $10,454,000
• S-Elect Apartments (Duluth) — $5,173,000
• Bluffview Townhomes (Red Wing) — $2,396,000

Twin Cities metro

• LaSalle Apartments (Minneapolis) — $200,000
• Sumner Fields II (Minneapolis) — $1,275,000
• Basset Creek 1B (Minneapolis) — $1,575,000
• Heritage III (Minneapolis) — $1,000,000
• Sumner Fields 1A (Minneapolis) — $1,275,000
• Winter 5 (St. Paul) — $548,000
• Gentry Apartments (Oakdale) — $1,150,000
• Blooming Meadows South (Bloomington) — $16,704,000

Funding will support eligible uses such as acquisition, rehabilitation, and related costs that help preserve affordability and improve building conditions. Loans are expected to be structured as deferred loans, with terms tied to the affordability commitments proposed by each development.