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Minnesota Housing Funding Decisions

General Overview

Because the bonding bill wasn’t passed until October, the typical process Minnesota Housing follows to allocate Low Income Housing Tax Credits and Housing Infrastructure Bonds has been delayed and modified.

Instead of announcing all of the funding awards at once, they’ve adopted a two-step process. The first step was an announcement on December 17 placing projects into one of three categories: those approved for funding, those to be “recommended to advance” for further consideration, and those which will not receive funding. The second step will be an announcement in the near future regarding which of the “recommended to advance” projects will be funded and how that funding will be structured (using only tax credits, only bonding dollars, or a combination of the two).

While there is a strong likelihood that projects “recommended to advance” will receive funding, it is not a guarantee. Beacon remains optimistic that Kimball Court and Vista 44, which both moved forward in the process, will be funded.

The fact that the legislature passed Housing Infrastructure Bonds at all this year is a testament to the vocal advocacy of Beacon’s collaborative. The fact these essential investments were even up for debate is a testament to the work still ahead of us.

It is imperative that our state legislators provide bonding dollars to fully fund Minnesota’s housing needs. It is not acceptable that year after year after year, homes our families needed yesterday are delayed yet again because we allow the myth of “insufficient resources” to persist. We will continue to mobilize our base and stand with our allies to demand that the legislature treat housing as the priority that it is.

Your gift creates home. To make a gift to support these homes and our shared vision that all people have a home, click here.

Emerson Village, North Minneapolis

We join the broader North Minneapolis community in our disappointment that Emerson Village did not receive funding from Minnesota Housing this year.

One of the reasons we didn’t get funded by Minnesota Housing is because Emerson Village doesn’t have Hennepin County funding or City of Minneapolis funding lined up. Hennepin County demurred in their 2020 decisions, and just this last Friday the Minneapolis City Council failed to focus on their own stated goal of prioritizing homes affordable at 30 percent Area Media Income (AMI) as they overlooked Emerson Village to fund other projects. This cycle of no one providing the “first money in” makes it more difficult to create the essential homes families with low incomes need right now.

What this means:

1. We’ve got a lot of heavy lifting to do together in 2021. It’s vitally important we get Emerson Village fully funded in 2021. The families who hope to call it home simply can’t keep waiting longer. To get there will take all of us showing up and getting Hennepin County to break the cycle and commit the “first money in” – and this effort begins now! We failed to get the City of Minneapolis to take this step. When we come back to the City next winter, it will be imperative that we’ve shown up en masse to secure funding from Hennepin County beforehand so we can demonstrate that our communities are serious about prioritizing homes for low-income families.
2. The work we’ve done so far sets us up well. Your organizing made a difference with Minnesota Housing! They recently adopted a new scoring process – the QAP – used to determine priority homes to fund, and will be awarding extra points to developments in low-income communities. This change will have a direct positive impact on Emerson Village’s 2021 application. This happened because our collaborative wrote letters, made phone calls, and advocated for the necessary changes with Minnesota Housing. THANK YOU!
3. Your gift creates home. Private contributions support the planning, organizing, designing, and funding that ensures we’ll be able to build Emerson Village. It will take $735,000 in private gifts to lay these strong foundations.

Kimball Court, Saint Paul

Minnesota Housing is moving Kimball Court forward in their funding consideration process. We are hopeful this will mean an allocation of housing tax credits, housing infrastructure bonds, or a combination of both to support construction of Kimball Court. Pending the final decision, Beacon will move toward starting the rehabilitation of these historic Saint Paul apartments in 2021.

Serving single adults alongside our partner Avivo, Kimball Court will expand Beacon’s ability to support individuals who have been unhoused, including some who have been living at area encampments.

This project will renovate the 76 homes, lobby, front entrance, and office space already located at the site, while adding on 22 new homes to serve the growing need in our community.

It will take $360,000 more in private gifts to support all the work required to bring us to construction. Each “Seed of Home” at $15,000 per seed allows Beacon to plan, organize, design, and fund the homes at Kimball Court and beyond.

Prairie Pointe, Shakopee

We are very excited by our campaign’s success in securing a $900,000 capital investment from Scott County, and we’ll need your continued support to secure funding from Carver County and the $585,000 in private gifts it will take to strengthen our application to Minnesota Housing for 2021. At the same time, we’re disappointed that Prairie Pointe was not selected for capital funding by Minnesota Housing this year. There are simply not enough resources allocated for the housing needs of Minnesotans.

What this means:

1. Your continued action will matter. Carver County needs to step-up and follow the lead of Scott County to provide local funding for Prairie Pointe. It will take Minnesota Housing and Carver County investments to make Prairie Pointe a reality. Your letters, emails, phone calls, and invitation to others to join you will demonstrate to the Carver County Commissioners and other elected officials that funding homes for our low-income neighbors is a priority they should champion. Join us for an hour-long celebration of the hard work that secured the Scott County funding and a look ahead at what it will still take for Prairie Pointe. RSVP for this virtual event on Monday, January 4 from 6 – 7 p.m. by clicking here.
2. Families continue to wait for homes tonight. Too many families in our community are being forced to make unimaginable choices between paying their rent, covering health and medical bills for themselves and their children, and putting groceries on the table and pencils in backpacks. Our society has the resources for all of us to have a home. We must insist that lawmakers prioritize increased funding to develop the homes our neighbors can afford.
3. Your gift creates home. As we continue to champion affordable, supportive housing for the southwest metro, it will take private gifts of $585,000 to engage in all the work it takes before the shovel even hits the ground. These “Seeds of Home” – $15,000 for each home – power the organizing, planning, architectural design, and more that lays the foundation for homes like Prairie Pointe.

Vista 44, Hopkins

On behalf of the families whom we hope will soon be able to establish a safe, stable home in a community they love, Beacon is honored that Minnesota Housing has voted to move Vista 44 forward in their funding considerations this year. As we anticipate the final decision, we are both confident and hopeful that Vista 44 will receive MHFA funding this year – a capital investment anticipated to be just over $14 million! We now need to secure funding from Hennepin County and $300,000 in private gifts from donors like you to make these homes a reality.

We are also grateful to Metro HRA for providing rental assistance vouchers and to the Metropolitan Council for capital investments for Vista 44. You may have heard this good news previously, but it’s always great to lift it up again!

What this means:

1. Vista 44 will make a difference for families. With tailored, on-site support offered through Volunteers of America for every member of the family, Vista 44 will help children do better in school, parents increase income, and families improve long-term health. This investment will be a testament to the desire of suburban communities to create housing options that work for all of their residents.
2. Your action mattered! By showing up and making this desire visible, our collaborative stood in solidarity with the families ready to make Vista 44 home and laid the groundwork for this important investment from Minnesota Housing.
   The fact that the legislature passed Housing Infrastructure Bonds at all this year is also a testament to the vocal advocacy of Beacon’s collaborative! THANK YOU! The fact these essential investments were even up for debate is a testament to the work still ahead of us, though.
3. Your continued action will matter. Hennepin County also needs to step-up with funding for Vista 44. It will take Minnesota Housing and Hennepin County investments to make Vista 44 a reality. Your letters, emails, phone calls, and invitation to others to join you will demonstrate to the Hennepin County Commissioners and other elected officials that funding homes for our low-income neighbors is a priority they should champion. To get involved in the critical next steps, email Drew at drindfleisch@beaconinterfaith.​org
4. Your gift creates home. It will take $300,000 in private capital gifts to complement the public funding we anticipate receiving to create the homes at Vista 44.