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Minneapolis Secures $14M Grant to Expand Affordable Housing

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  Published in House and Home on Friday, November 21st 2025 at 14:41 GMT by CBS News

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Minneapolis Secures $14 Million to Expand Affordable Housing: A Community‑Driven Plan for the City’s Future

Minneapolis has just taken a decisive step toward addressing its long‑standing housing affordability crisis. The city council’s recent approval of a $14 million grant for a slate of new and retrofitted housing projects signals a coordinated effort between municipal leaders, developers, and neighborhood groups to deliver more affordable units to low‑ and moderate‑income residents. The funding, which comes from a mix of city, state, and federal sources, will be used to purchase, rehabilitate, and build more than 200 units across several neighborhoods, with the dual goals of preserving existing affordable inventory and creating new mixed‑income communities.

The Funding Package and Its Sources

The $14 million package is a product of a joint effort between the Minneapolis Housing Authority (MHA), the Minneapolis Housing and Community Development Department, and the Minnesota Department of Housing and Community Development. The city matched $8 million in local funds with $3 million from the federal Low‑Income Housing Tax Credit (LIHTC) program and $3 million from the state’s Housing and Development Fund. The result is a sizable, diversified funding stream that the city can use flexibly for both purchase and construction.

According to a release from the MHA, the funding will be distributed across three distinct projects:

1. Riverfront Commons – a 25‑unit rehabilitation of an existing mid‑rise building on the east bank of the Mississippi River, designed to maintain a 30 % affordable share.
2. Lakewood Lofts – a new 50‑unit mixed‑income development in the Lakewood neighborhood that will include a mix of 10 % market‑rate units, 30 % below‑market‑rate units, and 60 % affordable units for families earning 60 % of area median income (AMI).
3. North Loop Renewal – a 125‑unit, mixed‑use development that incorporates community space, a childcare center, and a 10‑year affordable housing trust fund.

The projects will be overseen by a joint task force that includes representatives from the MHA, the Minneapolis Housing and Community Development Department, neighborhood councils, and the developers responsible for each project.

What the Projects Mean for the Community

The city’s mayor highlighted the funding’s significance in a statement: “This grant is not just a financial investment—it’s a promise to Minneapolis residents that we will build homes that keep our city vibrant, inclusive, and affordable.” Residents from the North Loop and Lakewood neighborhoods have long called for affordable housing near their schools and job centers, and the new projects directly address those needs.

In the North Loop, the proposed mixed‑use building will include a public plaza and a rooftop garden, both designed to foster community engagement. A spokesperson from the Minneapolis Housing Authority said that the inclusion of a childcare center and a small grocery space would help reduce “the burden on families who often have to travel far for essential services.” The project will also incorporate green building standards that aim for LEED Silver certification, reducing energy costs for low‑income families.

In the Riverfront Commons, a historic mid‑rise building will be renovated with a focus on preserving its architectural character while bringing it up to code. The project will include a 20‑unit affordable segment for seniors and families, along with a 5‑unit “bridge” housing component for individuals with developmental disabilities, ensuring that the neighborhood remains diverse and inclusive.

The Lakewood Lofts project is notable for its mixed‑income approach. The developer, known for its community‑partnered projects, will provide a portion of the units at below‑market rents while reserving a larger share for families at or below 60 % AMI. The developer’s website, linked in the article, details that the project will also feature a “co‑housing” component—two units per floor that can be shared by roommates, offering a flexible solution for young professionals and students.

Community Input and Oversight

The article notes that Minneapolis has established a community oversight panel that will review the projects’ design plans, financing models, and affordability metrics. Residents who attended the recent public hearing in the North Loop expressed enthusiasm for the proposed child‑care center and voiced concerns about parking. In response, the panel is working with the developers to explore shared parking arrangements and the possibility of expanding the neighborhood’s public transit hub.

The city also linked to a public portal that allows residents to track the progress of each project, including cost breakdowns, anticipated timelines, and public meeting agendas. The portal is part of a broader transparency initiative that the Minneapolis Housing Authority launched last year, aimed at keeping residents informed throughout the life cycle of affordable housing projects.

The Bigger Picture: Minneapolis’ Long‑Term Housing Strategy

The $14 million grant is a key component of Minneapolis’s broader “Housing for All” plan, which sets a target of adding 2,000 new affordable units over the next decade. The plan’s blueprint includes:

• Increased density in transit‑connected neighborhoods.
• Inclusionary zoning that requires developers to set aside a minimum percentage of units as affordable.
• Preservation of existing affordable stock through targeted rehabilitation and purchase programs.

A link in the article to the city’s official Housing and Community Development website provides a detailed roadmap of these strategies, along with data dashboards that track affordability metrics, median rent trends, and population displacement rates.

Next Steps and Challenges

While the funding announcement is a major milestone, the projects still face several hurdles. Securing final approvals from the Minneapolis Planning Commission, addressing community concerns about parking and traffic, and negotiating the complex financing structure that blends LIHTC, local bonds, and private investment will take time. The developer’s press release, linked in the article, outlines a projected completion timeline of 18 to 24 months for the Riverfront Commons and 30 to 36 months for the larger North Loop and Lakewood Lofts projects.

The Minneapolis Housing Authority emphasized that community partnership will be crucial for success. “We’re not just building houses; we’re building relationships,” the MHA’s executive director said in a recent interview. “By working closely with residents, developers, and local businesses, we can ensure that these projects meet the real needs of the neighborhoods they serve.”

Conclusion

Minneapolis’s $14 million investment in affordable housing is a tangible manifestation of the city’s commitment to tackling housing insecurity head‑on. By combining public funding with federal tax credits and private investment, the city is leveraging a multi‑pronged approach that promises not just more units, but healthier, more inclusive communities. As the projects move forward, the city’s commitment to transparency, community engagement, and sustainable design will be tested, but the foundational funding package provides a solid platform from which Minneapolis can move toward a future where everyone has access to safe, affordable, and quality housing.