MHP releases Local Housing Trust Fund Manual for Minnesota
St. Paul, MN (July 30, 2019) — Today, Minnesota Housing Partnership is announcing the release of its Local Housing Trust Fund Manual for Minnesota. Local Housing Trust Funds are established by a local government by dedicating local public revenue for housing. With 80 pages of references, case studies and explainers, the Local Housing Trust Fund Manual for Minnesota provides an in-depth discussion of key decisions local communities will make to establish a Local Housing Trust Fund (LHTF) — from creating priorities to choosing revenue sources.
When it comes to housing, Goodhue County Commissioner Brad Anderson‘s view is, “Not doing anything is not an option.” That’s why he and other local leaders established a housing trust fund in Goodhue County as a resource to creatively address evolving local needs. Minnesota Housing Partnership released this manual to help other Minnesota communities do the same.
“Local communities aren’t going to let Minnesota’s affordable housing shortage hold them back any longer,” said Anne Mavity, Executive Director. “They’re ready to innovate and take action. By creating a Local Housing Trust Fund, communities can implement programs that meet their unique needs and leverage the resources they need to thrive.”
A consistent, flexible resource, housing trust funds can pool public and private investments. On average nationwide, city trust funds leverage an additional $6 in public and private funding for every dollar invested. Minneapolis’ trust fund, established in 2003, leverages $9 for every dollar invested.
Red Wing has already helped six families become homeowners by providing zero-interest homebuyer assistance loans through their trust fund — and they’re poised to help seven more. Established in 2015, Red Wing invests $100,000 annually into their fund. Through Tax Increment Financing, the city will soon invest up to an additional $100,000 annually for 25 years.
St. Paul established a trust fund last year, with a one-time $10 million investment and annual $2 million investments totalling over $71 million. “We are committed to ensuring all of our residents can participate in our city’s prosperity,” said Saint Paul Mayor Melvin Carter. “Our Affordable Housing Trust Fund advances this vision by supporting safe, secure, and affordable housing solutions in every neighborhood.”
To Commissioner Anderson, Goodhue County’s housing trust fund signals that leaders and community members are taking action to help the county realize its potential to thrive. “Our investments say to businesses, individuals, and families, ‘This is the place you should be,'” Anderson said.
MHP’s Local Housing Trust Fund Manual for Minnesota is a resource that communities of any size can use. It takes lessons learned by cities and counties and combines them with in-depth discussions of current best practices. For more information or to download the Local Housing Trust Fund Manual for Minnesota, visit https://www.mhponline.org/community-development/lhtfmanual-minnesota.