City awards $14 million for affordable housing projects; adds nearly 130 shelter beds

November 20, 2025
Community Planning & Economic Development

As winter arrives and the federal government cuts vital housing resources, the City of Minneapolis continues to expand on its record-setting commitment to providing safe and dignified affordable housing, while helping people experiencing homelessness get access to shelter and stability.

The City Council awarded more than $14 million in direct investment, along with $1.7 million in 10-year federal housing tax credits (HTC), to jumpstart 11 affordable rental housing projects. This money adds or preserves nearly 600 affordable homes for Minneapolis families, seniors, and residents exiting homelessness. In addition, the City announced 126 new shelter beds and 123 new units to help people experiencing homelessness.

“Cities across the country are looking for answers on housing—and Minneapolis is proving what’s possible,” said Mayor Jacob Frey. “We’re out front, building affordability at a scale and pace that puts us on the national map. These investments mean hundreds more people housed, more families stable and a city that’s leading by example.”

Since 2011, the City’s Affordable Housing Trust Fund (AHTF) program – that uses federal and local funding sources – has awarded nearly $183 million in Minneapolis housing, helping build and stabilize thousands of affordable units. Four of the projects, awarded funding in recent years, have opened or will open by year’s end. They will expand warm, safe options during the winter months and create clearer pathways into permanent housing. They are:

  • Now open: Valiance Apartments and Shelter – 2806 27th S.
    • 50 permanent supportive housing units, which means that this kind of housing is linked to social services that foster housing stability and improved health for people experiencing homelessness, mental illness, substance abuse disorders and other disabilities.
      • This number includes 25 units for people exiting homelessness.
    • 54 emergency shelter beds
  • Now open: Minnesota Indian Women’s Resource Center – 2300 15th S.
    • 24 permanent supportive housing units.
      • This includes 20 units for people exiting homelessness and 4 units for persons with disabilities.
  • Now open: Kyle Garden Square – 700 10th S.
    • 59 permanent supportive housing units
      • This includes 48 units for people exiting homelessness.
  • Opening soon: Simpson Apartments and Shelter – 2740 First Ave. S.
    • 42 permanent supportive housing units
      • This includes 30 units for people exiting homelessness.
    • 72 emergency shelter beds

Hennepin County, one of the City’s key partners in unsheltered homelessness response, is also adding 133 shelter beds as part of its Winter Warming program (8 of which are at Valiance). The rest of the beds are at Rescue Now, AICDC KOLA, Steps of Strategy and Our Saviour’s Housing. The county’s system to shelter eligible families with children expands to meet the need so no child sleeps outside in Hennepin County.

AHTF program projects have several eligibility requirements, like ensuring that at least 20 percent of units will be affordable to households earning no more than 50 percent of area median income (AMI). Awards are made through a competitive application process that evaluates financial strength, readiness, design, and long-term feasibility. The 11 projects awarded 2025 AHTF funds and 9% HTC are as follows:

  • Ward 1
    • Clare 5 Apartments - 1900 Monroe St. NE - $289,658 in 9% HTC to preserve and rehab 33 units of deeply affordable supportive housing for seniors living with HIV/AIDS, including 10 units for people exiting homelessness.
  • Ward 5
    • Lindquist Apartments - 1931 W. Broadway - $940,000 to preserve and rehab 26 units of deeply affordable housing, 24 of which will be dedicated to youth exiting homelessness.
    • PennWood Village and Community Market – 2125 Glenwood Ave. N. and 306 Penn Ave. N. - $1,500,000 for a new construction mixed-use property with 86 affordable family-sized units.
  • Ward 6
    • Lot A – 1500 S. Fourth St. - $920,000 for 75 units of affordable family housing on a City-owned site.
    • The Jourdain – 2006 Portland Ave. - $840,000 for rehabilitation of 41 units of mixed-income housing with two- or three-bedroom units.
    • The Wellstone – 620 E. Franklin Ave. - $1,315,000 for rehabilitation of 49 family-friendly units.
  • Ward 7
    • Flour Exchange – 310 Fourth Ave. S. - $3,195,000 for an adaptive reuse of the historic Flour Exchange building into 110 units of affordable housing, including 12 units for people exiting homelessness.
  • Ward 8
    • Zaria Apartments – 3030 Nicollet Ave. - $2,170,000 for phase two of redevelopment for 90 affordable units, including nine units for people exiting homelessness.
  • Ward 9
    • Hiawatha Commons Rehabilitation - 2740 Minnehaha Ave. S. - $1,680,000 for the renovation of a mixed-income project with 80 units.
  • Ward 10
    • 2116 Nicollet - 2116 Nicollet Ave. S. – $1,488,183 in 9% HTC for 53 units of deeply affordable and low-barrier housing for people exiting homelessness and persons with disabilities.
  • Ward 11
    • Lyndale Avenue Apartments - 5719 Lyndale Ave. S. - $1,870,000 for new construction of 40 deeply affordable units.

Each year, the City publishes its Way Home Report that tracks key housing and homelessness outcomes. The latest report from 2022 to 2024 shows a significant and sustained increase in investment since 2018, totaling $400 million.

“Sustained investment in housing keeps delivering real results,” said Elfric Porte, City of Minneapolis housing director. “We want to help our neighbors by providing resources and housing where and when they need it most. As we head into the winter months, it’s important to keep people in the forefront of our efforts.”

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