Preservation

Existing housing is typically the most affordable, and preserving it is more cost effective than new construction. There are segments of the existing affordable housing stock that are at risk of being lost, either to rent increases or to deterioration; particularly properties with federal project-based rental assistance.

Federal project-based assistance allows more than 60,000 lower income renter households to spend no more than 30% of their income on housing. Most of the Section 8, USDA Rural Development, Public Housing, NAHASDA (Tribal housing); and other units were built in the 1970s and 1980s and need recapitalization.

In addition to projects with federal project-based rental assistance, Minnesota Housing can help with the preservation of critical affordable units. These include but are not limited to those with current recorded deed restrictions; and/or rent and income restrictions.

Minnesota Housing has resources available for a wide range of preservation projects:

Project-based Section 8
USDA Rural Development
Tribal
Public Housing
Expiring Tax Credits
Supportive Housing
Greater Minnesota affordable rental housing (with or without subsidy)

Annual Multifamily Consolidated Request for Proposals (RFP) Resources

Annual Multifamily Consolidated Request for Proposal (RFP) Resources

The annual Multifamily Consolidated RFP provides the best option for preservation projects that require significant capital for acquisition and/or rehabilitation.

In the Multifamily Consolidated RFP, Minnesota Housing prioritizes properties for preservation that are at risk of losing federal rental assistance due to poor physical condition, diminished owner capacity or owner commitment, or at risk of conversion to market (opting out of the rental assistance program).

There are several resources available through the Multifamily Consolidated RFP that can be used for preservation projects with substantial capital needs.

Technical Assistance

If you are applying through the Multifamily Consolidated RFP, we strongly encourage setting up a technical assistance (TA) meeting to discuss your preservation project. To schedule a TA session fill out this Technical Assistance Request Form.

Additional Preservation Resources

Amortizing First Mortgages

Minnesota Housing has funds available to refinance existing first mortgages for affordable multifamily housing. Funds are for first mortgage, fixed rate, amortizing debt for multifamily rental housing. For preservation projects, a refinance can often generate proceeds that can be used to address existing capital needs. View more information on amortizing mortgages.

Publicly Owned Housing Program (POHP)

Minnesota has a unique program targeted to public housing in the state, the Publicly Owned Housing Program (POHP). POHP is a competitive funding program that uses the proceeds of General Obligation (GO) Bonds to provide financing in the form of a 20-year, deferred, forgivable loan to public housing authorities and agencies (PHAs) and housing and redevelopment authorities (HRAs). PHAs and HRAs use these loans to rehabilitate and preserve public housing properties that are operating under HUD’s Public Housing Program. Funds can be used to address life safety, accessibility, energy and water efficiency and critical needs. View more information on POHP.

Rental Rehabilitation Deferred Loan (RRDL) Program

The Rental Rehabilitation Deferred Loan Program (RRDL) is a good resource for smaller scale affordable rental projects outside the 5-county metro area that have health and safety issues and/or critical physical needs. RRDL loans can be made up to $700,000 per project. For the last several years, Minnesota Housing has been prioritizing the preservation of projects with USDA Rural Development Section 515 mortgages, and loans are awarded through an RFP process. Loans are typically structured with a 20-year deferred term, and 10% of the loan amount is forgiven after the loan term has been met. View more information on RRDL.

Asset Management Loan Program

Asset Management loans are designed to meet immediate critical health and safety needs in properties that have Minnesota Housing financing, including those with existing affordability restrictions or rental assistance contracts administered by Minnesota Housing. Asset Management loans are awarded to projects that have urgent needs that cannot be addressed through the Consolidated RFP. Referrals typically come from Minnesota Housing’s asset management and compliance staff. Loans are typically less than $1 million and usually structured as deferred.

Contact

anne.heitlinger@state.mn.us

651.296.9841

Quick Links

MF Consolidated Request For Proposals (RFP)

Program Guides and Manuals

Prevailing Wage Requirements

Request for Action and Change Notification