Resolution to authorize application to Minnesota Housing for the Housing Trust Fund Grant program and EDA matching funding.

Approve Resolution.

Minnesota Housing established a Local Housing Trust Funds Grant Program 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 

Since 2023, $5.8 million in one-time funding has been allocated by the State of Minnesota to the program. Local HTFs may be eligible to receive matching funds up to $225,000 depending on the amount of New Public Revenue the applicant uses as matching funds and contingent on the total available funds for the program. New Public Revenue in an amount up to $150,000 can be matched with grant funds at 100%.  Additional New Public Revenue of more than $150,000 and up to $300,000 can be matched at 50%. The Request for Proposal (RFP) application will open on Wednesday, February 12, 2025. The application due date is Wednesday, March 19, 2025.  
 
It is recommended that the EDA consider allocating the maximum matching funds from EDA general funds in the amount of $300,000 seeking $225,000 from MN Housing’s Local Housing Trust Funds grant program.
The requested action is to approve by resolution the authorization of the application for Local Housing Trust Funds Grant program with Minnesota Housing and providing $300,000 in New Public Revenue as matching funds from the EDA.  If a grant is awarded, the grant agreement will be submitted to the EDA for execution. It is anticipated that grants will be awarded in June 2025.