How it works

• Housing revenue bonds and tax-exempt mortgage notes are federal and state funding tools.
• The City can use them to support the development or rehabilitation of affordable rental housing.
• While the City issues the bond, the borrower, not the City, repays the bond.

Use of funds

The financing can be used to:

• Rehab existing affordable rental housing
• Build new affordable rental housing

Our priorities

If we get more bond requests than we can fund, we will give priority to projects that:

• Already have an Affordable Housing Trust Fund (AHTF) award.
• Help with recovery from the 2020 civil unrest.
• Include many units with rent and income limits set at 30% of the Area Median Income (AMI).
• Are on City-owned land.

We may also take into account the:

• Area of the city.
• Risk of losing federal funding.

Approval process

The approval process includes:

• A public hearing.
• City council and mayoral approval.
• State of Minnesota approval.

Approval is based on bond availability.

Fees

You will have to pay us:

• Application and closing fees.
• A bi-annual administrative fee.

We also collect a Minnesota Department of Finance fee.