During the 2022 Minnesota legislative session an on-going state appropriation was passed to create the Statewide Affordable Housing Aid fund (SAHA). SAHA helps counties, Tribal nations, and greater Minnesota local governments develop and preserve affordable housing within their jurisdictions to keep families from losing housing and to help those experiencing homelessness find housing. SAHA funding in 2024 will be approximately $26.9 million.
During the 2023 Minnesota legislative session a metro area sales tax was passed known as Local Affordable Housing Aid (LAHA). This funding is dedicated to helping metropolitan local governments develop and preserve affordable housing within their jurisdictions to keep families from losing housing and to help those experiencing homelessness find housing. The 0.25% sales tax applies to retail sales made in any of the following counties: Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington Counties and their respective cities. This new tax will generate approximately $48.3 million per year with first disbursements beginning in July 2024.
Both SAHA and LAHA funding is disbursed to counties and cities two times per year – on July 20th and December 26th.
This funding creates new, significant, and immediate opportunities to stabilize and increase access to housing resources for low-income Minnesotans and those suffering from destabilizing behavioral health issues and systems involvement that disproportionately impact Minnesotans of color.
Recommendations to Stabilize Supportive Housing using SAHA and LAHA funds
Hennepin County Repair and Grow RFP (funded by LAHA to stabilize affordable and supportive housing)
Hennepin County has released its Repair + Grow RFP, funded by Local Affordable Housing Aid (LAHA). Repair + Grow will provide one-time assistance to local non-profit affordable housing owner-developers to help mitigate challenges standing in the way of new development.
Proposals are due by 3 p.m. on Thursday, September 26 and must be submitted via the Supplier Portal.
Hennepin County needs a healthy ecosystem of developers and owners to expand affordable housing production for low-income residents. Yet many non-profit partners are still struggling to keep existing projects in operation due to industry-wide rental revenue decreases and operating cost increases.
Repair + Grow works to alleviate some of those challenges, with the goal of increasing local capacity to create new affordable housing that meets the needs of all Hennepin County residents.
Access the RFP via Hennepin County’s Supplier Portal: https://lnkd.in/g6TFHYnB