Ownership and Opportunity Fund

Our program offers funding for commercial real estate development in the city. We focus on economically challenged areas. Formerly called the Commercial Property Development Fund.


Painted mural on side of 927 building in Minneapolis



In 2024, we set aside $3.5 million for this loan pool. Since the program began in 2020, approved loans have varied from $190,000 to $1,500,000, covering about 5% to 33% of total project costs for 23 projects in total.

About the program

This program helps boost the economy in Minneapolis. We provide forgivable loans for real estate projects in areas that need help.

See the Notice of Funding Availability


Who is eligible

  • Applicants may be any of the following in active, good standing with the Minnesota Secretary of State:
    • Individual owners
    • Partnerships
    • Corporations
    • Cooperatives
    • Any other legally recognized form of business organization
  • Applicant must:
    • Be located in or willing to relocate to Minneapolis
    • Be able to service any projected debt obligations
    • Be an acceptable credit risk
    • Have proof of ownership of the subject property or a valid proof of site control
    • Demonstrate the ability to finance the project with other leveraged financing
  • Applicant's property status must:
    • Be up to City code or be brought up to code
    • Exist as a conforming use or a legal non-conforming use under the City's zoning ordinances
  • Subject property must:
    • Be current on all property taxes and assessments
    • Fully comply with all applicable regulatory requirements
    • Be within the City of Minneapolis
    • Be a non-residential commercial business(es) as its principal use

Who is not eligible

  • Nonprofit organizations
  • Applicants who have already gotten a loan from CPDF/OOF for a different site. We may make an exception if you only partially own one or both of the sites.
  • Residential properties and uses

Eligible uses

  • Land and or building purchase
  • Hard construction costs
  • Construction-related fees and professional services
  • Exterior and interior repairs and improvements to buildings
  • Building components, including:
    • Heating, ventilation and air conditioning (HVAC) systems
    • Plumbing
    • Electrical
  • Façade improvements, including:
    • Sign repair
    • Sign replacement
  • Soft costs, including:
    • Design services
    • Building permits
    • Energy audits
  • Parking lots, including:
    • Lighting
    • Surfacing
    • Landscaping
  • Streetscape costs not financed by special assessment

Expenses/costs that are not eligible

  • Billboard advertising
  • Funds for everyday operations, stock, and vehicles
  • Refinancing of existing debt is generally not eligible, but may be considered on a case-by-case basis for uses such as repayment of temporary “bridge” loans made during the current project phase and contract for deed pay offs. However, loans for building new structures or renovating existing ones will be given priority over refinancing requests
  • Certain non-construction costs like developer fees

Program terms

Loan amount Based on an analysis of the project’s financial gap and current funding availability.
Term 40 years

Repayment of full principal balance due if one of the following events occurs:

  • Changes in property ownership to a non-qualified heir or successor owner(s) without the consent of the City; or
  • material change in use of property without the consent of the City.
Debt forgiveness

No debt forgiveness during term. At the end of the term principal balance forgiven if the borrower meets the following conditions:

  • No material changes in use of property
  • No issues with delinquent taxes
  • No unresolved City zoning or property maintenance violations
  • No other defaults on the loan

Specific debt forgiveness terms to be approved during loan approval process.

Collateral Subordinated mortgage and or subordinated position in other collateral.

Contact us

Business Development Team

Community Planning & Economic Development





Public Service Building
505 Fourth Ave. S., Room 320
Minneapolis, MN 55415