Housing

HOUSING

Communities across Greater Minnesota need workforce housing. With unemployment rates at historic lows, employers are looking beyond their regions to find workers to fill vacancies. But if housing is unavailable, then these jobs go unfilled. Grater Minnesota does not have enough housing stock to accommodate workers and their families.

The Greater Minnesota Partnership supports investments and regulatory reforms that aim to reduce the private market cost of developing new affordable and market-rate housing, as well as revitalizing existing housing.

PROGRAMS AND FUNDING OPPORTUNITIES

Greater Minnesota Workforce Housing Development Program

This competitive funding program 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.

Local Housing Trust Fund Grants Program

The Local Housing Trust Fund Grants Program will match a portion of new housing trust fund dollars to encourage local investment in affordable housing.

Greater Minnesota Housing Public Infrastructure Grant Program

The Greater Minnesota Housing Public Infrastructure Grant Program will provide grants to cities outside the seven-county metro of up to 50% of the capital costs of the public infrastructure needed to support housing development.

State Housing Tax Credit Program and Contribution Fund

The State Housing Tax Credit (SHTC) Program and Contribution Fund helps finance housing that is affordable throughout the state of Minnesota. Eligible Minnesota taxpayers can contribute to the contribution fund and, in return, receive a state Tax Credit Certificate (TCC). Contributions will provide funding for loans for eligible housing projects in communities through the state.

Challenge Program

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.

OTHER RESOURCES

REPORTS AND DATA

HOUSING CASE STUDIES

Alexandria

Habitat for Humanity of Douglas County and the Alexandria Area Economic Development Commission (AAECD) worked together to bring 42 new affordable homes to an innovative new subdivision, thanks to TIF funding from the City of Alexandria.

Downtown Willmar

Block 25 Lofts is a four-story, 58-unit apartment building constructed on a former Brownfield site. Kandiyohi County Economic Development worked with the developer to secure a $475,000 site clean-up grant from the Minnesota Department of Employment and Economic Development and nearly $100 million in Tax Increment Financing from the city of Willmar to make the project possible.

2025 HOUSING OUTCOMES

During the 2025 legislative session, we advocated for additional investments in housing that would support the specific needs of Greater Minnesota. Throughout session, the GMNP also participated in extensive discussions about a slate of housing and zoning proposals (referred to as the "Missing Middle" proposals in 2024 and the "Yes to Homes" bills in 2025). These proposals applied a one-size-fits-all approach to zoning and land use and initially received broad, bipartisan support. Thanks to the work of GMNP and other partners to elevate concerns about the impact these proposals would have on housing and economic development in Greater Minnesota communities, the slate of bills did not pass. However, we anticipate legislators will continue to push for these policies in the interim and during the 2026 legislative session.

GMNP Housing Priorities

Advocate for additional funding for the Workforce Housing Development Program for FY26-27 and support policy changes that better allow the program to leverage the State Housing Tax Credit Program.
Support ongoing funding for Local and Statewide Affordable Housing Aid.
Advocate for ongoing funding for the Greater Minnesota Housing Infrastructure Grants Program.
Support additional funding for the Challenge Program for FY26-27.
Advance changes to housing TIF requirements that make the program more accessible for Greater Minnesota communities.
Oppose one-size-fits-all zoning and land use mandates on cities and advocate for policies that allow communities to tailor these policies to their individual needs while supporting housing development.

Outcomes for Key Programs

Greater Minnesota Housing Infrastructure Program - $2 million for FY26-27
Workforce Housing Development Program - $2 million annually (no changes to base funding)
Challenge Program - $14.925 million for FY26, $12.925 million for FY27
Housing Infrastructure Bonds (HIB) - $50 million
Changes to the State Housing Tax Credit that would have allowed it to better apply to workforce housing were not included in the final housing omnibus bill
Minnesota Housing competitive scoring criteria for programs will now include "local actions to support housing"

Review the final omnibus Housing bill here.

HOUSING

HOUSING CASE STUDIES

Alexandria

Downtown Willmar

2025 HOUSING OUTCOMES

LATEST UPDATES

MN Housing announces 2024 project selections

Virtual Information Session: Local Government Housing Programs

Workforce Housing 2024 funding awards announced

DEED awards $20.8M for economic development in Greater MN

Minnesota Housing releases 2024-2027 Strategic Plan

Growing Prosperity in Greater Minnesota