The Community Homeownership Impact Fund Grant

The Community Homeownership Impact Fund, managed by the Minnesota Housing Finance Agency, aims to enhance affordable housing in Minnesota by funding developers and administrators of single-family, owner-occupied homes. This program focuses on increasing the housing supply while ensuring safety and habitability. It offers interim loans, deferred forgivable loans, and grants to bridge financial gaps. Eligible applicants include cities, tribes, and nonprofits, all working towards improving housing accessibility and supporting community development.

Minnesota Housing Mission and Strategic Priorities
Minnesota Housing’s strategic priorities are:

• Improve the Housing SystemPreserve and Create Housing OpportunitiesMake Homeownership More AccessibleSupport People Needing ServicesStrengthen Communities
• Impact Fund Program Overview

The Community Homeownership Impact Fund (Impact Fund) provides funding for developers and administrators of single-family, owner-occupied affordable and workforce housing activity in communities across Minnesota. Resources are available through a competitive Request for Proposal published each spring.
The goal of the Impact Fund is to increase the supply of affordable, owner-occupied, single family housing, while maintaining the safety and habitability of existing owner-occupied, single family homes in communities throughout Minnesota.
Interim Loan
A short-term, low-interest bearing loan made to assist an administrator with acquiring, demolishing, rehabilitating or constructing owner-occupied housing.
Deferred Forgivable Loans
Interest-free deferred loan financing is available to help eligible homeowners bridge affordability gaps not covered by first-mortgage or other funding sources.
Provided to bridge value gaps between a project’s total development cost and its fair market value or for other eligible activities where recapture of loan funds proves infeasible or unaffordable.
Funding Terms
All funded housing activities must result in safe, habitable, affordable single family owner- occupied housing that conforms to the Minnesota State Building code and local codes and regulations. Applicants are encouraged to form working partnerships with one or more entities to achieve the objectives stated in their proposal.
The type, terms and conditions of assistance will vary depending on the needs outlined in each proposal and the availability of funding resources. Generally, if an activity may be addressed through a loan rather than a grant, a loan will be offered.
Awarded projects must be completed within 20 months from the effective date of the contract. Awarded interim loans may have a Repayment/Expenditure Date of up to 26 months; however, the Agency may adjust the loan terms based on a financial feasibility analysis by Agency staff or requirements and conditions of other funding sources. The determination of financial feasibility is based on whether all sources of funding are available and sufficient to cover the total development costs of the housing.

Eligibility

Eligible ApplicantsCities
American Indian tribes or subdivisions, or tribal housing corporations
Nonprofit organizations
School districts, cooperative units, or charter schoolsEligible UsesAll projects must supply or improve owner-occupied, single-family housing and comply with Green Communities Criteria. Eligible uses are: Acquisition, rehabilitation and resale of existing housing
New construction, including demolition or removal of existing structures with rebuild
Owner-occupied rehabilitation
Affordability gap subsidy for downpayment and closing cost assistance

Ineligibility

Household income cannot exceed 115% of greater of state or area median.