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RELEVANT LINKS: <br />League of Minnesota Cities Handbook for Minnesota Cities 8/1/2023 <br />Community Development and Redevelopment Chapter 14 | Page 21 <br /> Private enterprise and private investment were unable, without public <br />assistance, to provide an adequate supply of safe, sanitary, and decent <br />housing at affordable prices and rents. <br />Minn. Stat. § 462A.073. <br />MHFA: Minnesota City <br />Participation Program.Greg <br />Krenz, Minnesota Housing, <br />651-297-3623, <br />greg.krenz@state.mn.us. <br />The sale of state tax-exempt bonds is the primary financing for MHFA <br />programs. Through the Minnesota City Participation Program, Minnesota <br />Housing sells mortgage revenue bonds on behalf of cities to meet locally <br />identified housing needs. The proceeds of these bonds provide below- <br />market interest rate home mortgage loans for low- and moderate-income, <br />first-time homebuyers, or for the construction or rehabilitation of single- <br />and multi-family housing. Appropriations from the Legislature provide <br />additional funding for programs, including the promotion of energy <br />conservation; an increase in home ownership opportunities for first-time <br />homebuyers; home improvement grants to very low-income homeowners; <br />and programs to improve the housing available to Native Americans, large <br />families, and people with disabilities. <br /> B. Department of Employment and Economic <br />Development (DEED) <br />Minn. Stat. ch. 116J. <br />Minnesota Department of <br />Employment and Economic <br />Development. <br />The Minnesota Department of Employment and Economic Development <br />is the primary economic development agency for Minnesota. DEED staff <br />is responsible for a wide range of grant and loan programs, as well as for <br />providing technical assistance to businesses and communities. <br />Minn. Stat. §§ 116J.411- <br />116J.424. <br />Minn. Stat. § 116J.575. <br />See Minnesota Department of <br />Employment and Economic <br />Development for Local <br />Government. <br /> <br />DEED also provides grants for contamination cleanup and redevelopment. <br />A redevelopment account allows DEED to make grants to local units of <br />government up to 50% of the cost of developing and redeveloping <br />industrial, residential, or commercial property. DEED administers the <br />rural development program; makes challenge grants to regional <br />organizations to encourage private investment in rural areas; and <br />administers a revolving loan fund to provide loans to new and expanding <br />business in rural Minnesota. Local government units, including cities, may <br />receive these loans if the community has established a local revolving loan <br />fund and can provide at least an equal match to the loan received. <br />Minn. Stat. § 116J.431. <br /> <br />Greater Minnesota Business <br />Development Infrastructure <br />Grant Program. <br />Cities outside the seven-county metropolitan area may receive grants from <br />DEED for up to 50% of the capital costs of public infrastructure necessary <br />for certain specified economic development projects, excluding but not <br />limited to retail and office space. For this program, “public infrastructure” <br />means publicly owned physical infrastructure necessary to support <br />economic development projects, including but not limited to sewers, water <br />supply systems, utility extensions, streets, wastewater treatment systems, <br />stormwater management systems, and facilities for pretreatment of <br />wastewater to remove phosphorus.