Deferred Loan and Grant Programs

The Economic Development and Housing Challenge (EDHC) Program funds the development of affordable permanent rental housing that supports economic development and redevelopment activities, job creation, or job preservation.

Economic Development and Housing Challenge (EDHC) Program Guide

Flexible Financing Capital Costs (FFCC) works in tandem with Low and Moderate Income Rental (LMIR) loans. FFCC loans are traditionally structured as deferred loans at low or no interest and are used as a mechanism to reduce the overall interest rate to the development. Learn more about the LMIR and FFCC Programs.

Low and Moderate Income Rental (LMIR) and Flexible Financing for Capital Costs (FFCC) Program Guide

The Preservation Affordable Rental Investment Fund (PARIF) Program preserves the supply of federally assisted and supportive housing for low-income individuals and families. Federally assisted developments include those with Section 8 contracts, Rural Development rental assistance or financing and, on tribal land, NAHASDA funding.

Learn more about preservation projects.

The HOME Investment Partnerships (HOME) Program provides financing for the acquisition, new construction, or rehabilitation of federally and non-federally assisted multifamily rental housing. Minnesota Housing’s goal under the HOME Program is to preserve and increase the supply of decent, safe, and sanitary affordable housing for low-income individuals and families.

The National Housing Trust Fund (NHTF) Program provides financing for acquisition, new construction, or rehabilitation activities that increase or preserve the supply of multifamily rental housing for extremely low-income individuals and families. Up to one-third of NHTF funding may also be used for operating assistance for eligible costs. 

Learn more about the HOME and NHTF programs.

The Housing Infrastructure Program includes Housing Infrastructure Bonds (HIB) and Housing Infrastructure Appropriations (HIA) funding.

• Housing Infrastructure Bonds (HIB): Limited obligation tax-exempt bonds issued by Minnesota Housing and authorized by appropriations from the General Fund of the Minnesota Legislature. The proceeds of HIBs may be used to fund loans that finance specific multifamily housing development purposes.
• Housing Infrastructure Appropriations (HIA): In 2023, Minnesota Statute 462A.37 was amended to expand the eligible uses and to utilize HIA, which are the direct state appropriations not associated with the issuance of bonds and the state and federal requirements associated with tax-exempt bonds.

Learn more about the Housing Infrastructure Program.

Community Stabilization: Naturally Occurring Affordable Housing – Multifamily Rental Housing Program (NOAH Multifamily Program) funds will be distributed as loans through a competitive Request for Proposals (RFP) process.

Learn more about the NOAH Multifamily Program

Community Stabilization: Distressed Multifamily Rental Building Program funds will be distributed as grants or loans through a competitive Request for Proposals (RFP) process and will be used to provide for the recapitalization of distressed buildings.

Learn more about the Distressed Multifamily Rental Building Program. 

The High-Rise Sprinkler System (HRSS) Program is designed to install sprinkler systems in eligible high-rise buildings.

Learn more about the HRSS Program.

The HOME American Rescue Plan (ARP) is a new program and information will be posted here as it becomes available. It is federal funding as a response to the COVID-19 pandemic. This funding will likely be targeted to service providers and developers of new or rehabilitated housing whose service providers provide assistance to clients who need assistance.

Comply with program requirements.

The Publicly Owned Housing Program (POHP) is a competitive funding program and was first established by the Minnesota Legislature in 2005 to offer assistance to Housing and Redevelopment Authorities (HRAs), Public Housing Authorities (PHAs), and Community Development Agencies (CDAs) that provide Public Housing to individuals and families (households with children).

The POHP is funded by the proceeds of General Obligation (GO) Bonds and through the issuance of one-time state appropriations.

Learn more about the POHP.

The purpose of the Rental Rehabilitation Deferred Loan (RRDL) Program is to provide resources to rehabilitate existing rental housing in Greater Minnesota so that affordability is preserved and low and moderate income households have access to decent housing that is convenient to jobs, transportation, and essential services.

Learn more about the RRDL Program.

The State Housing Tax Credit (SHTC) Program and Contribution Fund helps finance multifamily and single-family housing that is affordable throughout the state of Minnesota. Eligible Minnesota taxpayers may contribute to the contribution fund and, in return, receive a state tax credit.

Learn more about the SHTC Program and Contribution Fund.

The Workforce Housing Development Program (WHDP) targets small to medium-sized cities, communities, or areas in Greater Minnesota with rental workforce housing needs. Funding is available to build market rate residential rental properties in communities with proven job growth and demand for workforce rental housing. Learn more about the WHDP.