he Minneapolis City Council has approved a fresh commitment of $14 million to support nine affordable housing projects across the city. Officials say the goal is to expand housing options for low-income residents and strengthen support systems for people exiting homelessness.
Alongside this allocation, the city is providing an additional $1.7 million to two other developments through the Housing Tax Credit program — a federal initiative overseen by the Internal Revenue Service that reduces tax liabilities for investors who fund low-income rental housing.
According to city officials, the combined funding will help create or preserve almost 600 affordable homes in Minneapolis, significantly boosting efforts to provide stable housing for people transitioning out of homelessness.
The $14 million stems from the Minneapolis Affordable Housing Trust Fund, which pools both federal and local financing resources. To qualify for support, project applicants must ensure that at least 20 percent of their housing units remain affordable to households earning no more than 50 percent of the area’s median income.
Speaking at a news conference, Mayor Jacob Frey said the city will add 126 new shelter beds and 123 new housing units for individuals experiencing homelessness before the end of the year. He emphasized that such progress is possible only through coordinated partnerships.
“This work does not happen alone,” Frey said. “We are working closely with nonprofit organizations, the county, and the state to ensure people in need have real pathways into stable housing.”
Since 2011, Minneapolis has allocated nearly $183 million from its Affordable Housing Trust Fund to support housing projects citywide, reflecting a long-standing commitment to addressing housing insecurity.
The new investment comes amid growing concerns about federal policy changes. Earlier this month, the U.S. Department of Housing and Urban Development announced plans to cap funding for permanent supportive housing in upcoming grant cycles. Minnesota nonprofits and housing advocates warned that the move could jeopardize progress and potentially force thousands of formerly homeless residents back onto the streets.
