Minneapolis puts $14 million toward affordable housing projects
The Minneapolis City Council is allocating $14 million toward nine affordable housing projects, officials said Thursday.
The city said it's also giving $1.7 million to two other projects through the Housing Tax Credit program, an initiative managed by the Internal Revenue Service that helps lower taxes for "investors in qualified low-income rental housing."
According to the city, the money helps add or preserve nearly 600 affordable homes for Minneapolis residents exiting homelessness.
Officials said the $14 million comes from the city's Affordable Housing Trust Fund, which uses "federal and local funding resources."
Projects that apply for funding through the Minneapolis program must ensure that 20% of their units will be affordable to households earning no more than 50% of the area median income.
Learn more about the projects that were awarded funding here.
Mayor Jacob Frey during a news conference on Thursday said the city will have 126 new shelter beds and 123 new units for people experiencing homelessness by the end of the year.
"This is a partnership that we've got alongside nonprofit partners, the county and the state, because this work does not happen alone," Frey said.
Minneapolis officials said that, since 2011, the City Council has allocated nearly $183 million from the Affordable Housing Trust Fund toward housing projects.
Earlier this month, the U.S. Department of Housing and Urban Development announced plans to cap the amount of money communities can use for permanent supportive housing in the next round of grants. Dozens of Minnesota nonprofits and advocates on Monday warned the plans could mean thousands of state residents overcoming homelessness will return to the streets.