The Housing and Economic Development department, on behalf of Hennepin County and the Hennepin County Housing and Redevelopment Authority (HCHRA) (together, “the County”), is soliciting proposals for affordable rental housing development capital funding.
Donor Name: Hennepin County
State: Minnesota
County: Hennepin County (MN)
Type of Grant: Grant
Deadline: 01/29/2026
Size of the Grant: $500,000 to $1 million
Grant Duration: Grant Duration Not Mentioned
Details:
The Affordable Housing Incentive Fund (AHIF) and Local Affordable Housing Aid (LAHA) both fund the development and preservation of affordable housing units for low and very low-income households. AHIF and LAHA operate under the Hennepin County Housing and Redevelopment Authority (HCHRA) Board of Commissioners.
The Affordable Rental Housing Programs Request for Proposals (RFP) anticipates awarding approximately $14 million in capital from five funding sources:
- Affordable Housing Incentive Fund (AHIF)
- Local Affordable Housing Aid (LAHA)
- Supportive Housing Strategy (SHS)
- HOME Investment Partnerships Program (HOME)
- Community Development Block Grant Program (CDBG)
Funding Information
- Affordable Housing Incentive Fund
- Estimated funding available: $5 million
- Average estimated award size: $10K-$20K/affordable unit, per-project awards vary considerably $300,000-$1,000,000 per project
- Local Affordable Housing Aid
- Estimated funding available: $1.5 million
- Average estimated award size: $10K-$20K/affordable unit, per-project awards vary considerably $300,000-$1,000,000 per project
- HOME
- Estimated funding available: $1 million
- Average estimated award size: $10K-$20K/affordable unit, per-project awards vary considerably $300,000-$1,000,000 per project
- Supportive Housing Strategy
- Estimated funding available: $6 million
- Average estimated award size: $50K/SHS-eligible unit
- CDBG
- Estimated funding available: $500,000
- Average estimated award size: $100,000 – $200,000 per project
The Hennepin County 2025-2029 Consolidated Plan, identified the following high priority needs:
- Increase and preserve affordable housing choice for renters at or below 50% area median income (AMI), with highest priority for households at or below 30% AMI.
- Increase and preserve affordable housing choice for homeowners/homebuyers at or below 80% AMI, with highest priority for homeowners/homebuyers at or below 60% AMI.
- Prevent homelessness and increase housing stability, prioritizing households at or below 30% AMI.
Additional County priorities include:
- Creating new affordable units and preventing the loss of existing viable affordable units.
- Supporting a full range of housing choices throughout the County and ensuring equitable access to those units via inclusive tenant selection plans.
- Connecting affordable housing to local employment opportunities, schools, transit corridor development, and supportive services.
- Creating housing opportunities for Hennepin County Human Services and Public Health (HSPH) client populations through a project-based unit commitment.
- Promoting opportunity through contracting and workforce development, including Hennepin County’s Workforce Entry Program (WEP).
- Increasing the inventory of housing units accessible to people with physical disabilities.
Eligible Activities
- Multifamily affordable rental housing creation and preservation
- Supportive rental housing creation and preservation
- Multifamily affordable rental housing rehabilitation in suburban Hennepin County
Eligibility Criteria
Eligible applicants are governmental agencies, community-based organizations, tribal organizations, and nonprofit and for-profit entities.
For more information, visit Hennepin County.
