Local Government Housing Programs

The Local Housing Trust Funds Grant Program was established to encourage local governments to create or fund Local Housing Trust Funds.

The program uses state funding to match a portion of new housing trust fund dollars to encourage local investment in affordable housing across Minnesota. These funds may come from any source other than the state or federal government.

 The grant funds:

• Must be used for households at or below 115% of state median income
• May be used for
  • Development, rehabilitation or financing of housing
  • Downpayment assistance
  • Rental assistance
  • Homebuyer counseling services
  • Administrative expenses, up to 10% of grant 
• Must be used within five years 

In 2021, $1 million in one-time funding was allocated to create the program. This was supplemented by an additional $4.8 million in 2023.

For additional details on the program, read the program guide. 

The Greater Minnesota Housing Infrastructure Grants program was allocated $8 million in one-time funding to support municipalities developing new workforce housing.

Grant funds can be used for single-family, multifamily, owner-occupied and rental development projects. They can cover up to 50% of capital costs of public infrastructure. This includes sewers, water supply systems, utility extensions, streets and more.

Grants are limited to:

• $30,000 per lot for one to four units
• $180,000 per lot for multifamily housing (5 or more units)
• $500,000 to cities over two years

A non-state match of funds is required. 

Projects will be evaluated on whether they increase sites available for housing development and if that increase would lead to public and private capital investment in the project's city.

The Lead Safe Home Grants program will make homes safer through lead testing and hazard reduction.

Available for nonprofits and local governments, the program:

• Allows funding to be used for risk assessment and remediation of lead hazards
• Prioritizes areas with a high concentration of children with lead poisoning
• Requires 50% of units in multifamily properties to be occupied by renters at or below 60% area median income
• Allows up to 10% of award to be used for administration, education and outreach about lead hazards

The $4 million one-time appropriation and this program are known as the Dustin Luke Shields Act.

The Local Affordable Housing Aid and Statewide Affordable Housing Aid helps municipalities develop and preserve affordable housing within their jurisdictions. With the exception of Tier II Cities Grands, funds do not pass through Minnesota Housing.

The Minnesota Department of Revenue will distribute aid directly to jurisdictions:

• For metropolitan local governments, visit Revenue's Local Affordable Housing Aid (LAHA)
• For counties, Tribal governments and greater Minnesota local governments, visit Revenue's Statewide Affordable Housing Aid (SAHA)

Jurisdictions receiving aid are required to report their use of these funds to Minnesota Housing starting in 2025. Additional guidance will be provided on this process.

Read answers to frequently asked questions about LAHA and SAHA.

The Rental Assistance Program, known as Bring It Home, provides tenant- and project-based rental assistance for cost-burdened households earning 50% area median income (AMI) or less. Funds are prioritized for households earning under 30% AMI that include children.

The program is funded by $46 million in state appropriations and a regional sales tax in the metro area. Sales tax collection began on October 1 and is estimated to be about $77 million.

Grant agreements between Minnesota Housing and voucher administrators will be based on a need formula. Assistance will be provided equal to the difference between 30% of household income and the rent charged. An allowance for utilities may be added if not included in the rent.