Minnesota Programs

Government Grants & Incentives for Real Estate Investors in Minneapolis

Minneapolis eliminated single-family zoning citywide — a landmark policy creating development opportunities. Minnesota Housing's LIHTC program and the city's Affordable Housing Trust Fund are among the most active in the Midwest.

14 designated tracts
Opportunity Zones
$1,388
Section 8 (2-BR)
LIHTC
Tax Credits Available
4
Local Programs

State Housing Finance Agency

Minnesota Housing Finance Agency

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Public Housing Authority

Minneapolis Public Housing Authority (MPHA)

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Local Programs

Minneapolis Government Incentive Programs

These programs are available specifically to investors and developers in the Minneapolis, MN market.

Minneapolis Affordable Housing Trust Fund

Dedicated city fund providing gap financing for affordable housing production and preservation.

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Minnesota Housing LIHTC Program

Minnesota allocates LIHTC credits with a consolidated RFP process that streamlines applications for developers.

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Minneapolis 2040 Comprehensive Plan

Eliminated single-family zoning citywide, allowing up to 3 units on any residential lot — creating new development opportunities.

Hennepin County Transit-Oriented Development (TOD) Fund

Financing support for affordable housing near transit corridors in Hennepin County.

LIHTC Tax Credits in Minnesota

Low-Income Housing Tax Credits are the largest source of affordable housing financing in the U.S. In Minnesota, credits are allocated by Minnesota Housing.

How LIHTC Works

  • Dollar-for-dollar federal tax credit over 10 years
  • 9% competitive credits for new construction
  • 4% credits paired with tax-exempt bonds
  • 15-year compliance period for affordable rents

Minnesota Allocator

Credits are allocated by Minnesota Housing through their Qualified Allocation Plan (QAP), which outlines scoring criteria and priorities.

View Minnesota Housing LIHTC Program
Investor Tips

Why Invest in Minneapolis?

Elimination of single-family zoning creates unique small multifamily opportunities

Consolidated RFP process simplifies LIHTC application

Strong rental market driven by corporate headquarters (Target, UHG, etc.)

Transit-oriented development funds support projects near light rail

Finance Government-Incentivized Properties in Minneapolis

FundNow Capital provides DSCR loans, bridge financing, and portfolio loans that complement government incentive programs in Minneapolis.

DSCR Loans

Qualify using Section 8 rental income — government-backed rents strengthen your DSCR ratio.

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Bridge Loans

Short-term financing to acquire and stabilize properties before permanent LIHTC or agency financing.

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Portfolio Loans

Finance multiple properties in Minneapolis's Opportunity Zones under a single loan structure.

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Frequently Asked Questions

Get Financing for Investment Properties in Minneapolis

Tell us about your Minneapolis investment plans. We'll match you with the best financing options within 24 hours.

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