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LOCAL HOUSING TRUST FUNDS <br />IN MINNESOTA <br />Local Housing Trust Funds (LHTF) are funds established by a local <br />government by dedicating local public revenue for housing. They are <br />a consistent, flexible resource for housing within a local jurisdiction. <br />Trust funds help communities leverage public and private resources <br />and jumpstart projects that draw investment and jobs. LHTFs enable <br />prioritizing developments that maximize benefit to the community. <br />In 2017, the Minnesota Legislature defined a LHTF in law, providing <br />clarity to assist local jurisdiction with housing investments. In 2021, <br />to incentivize LHTFs, they authorized a state match fund of $1 million, <br />providing a one-to-one match on the first $150,000 of new revenue <br />invested in housing trust funds by cities and counties, and a one-to-two <br />match on the next $150,000 of available funds. <br />Since 2017, Minnesota has seen a steady increase in LHTFs, as 20 <br />cities and counties across the state have adopted them, with more <br />on the way. This report includes information from MHP’s third annual <br />survey of cities and counties regarding LHTF. <br />1 <br />Benefits of LHTFs <br /> <br />Leverage private dollars <br />Provide flexibility to <br />meet local needs <br />Encourage local <br />contributions <br />Establish dedicated <br />sources of revenue <br />February 2023 <br /> <br />Local Housing Trust Funds by the numbers: <br />20 <br />Number of LHTFs in MN <br />2023 <br />2017 35 <br />$75,000 <br />$10,000,000+ <br />Range of <br />Fund Sizes <br />Communities Interested in LHTFs <br />From big to small, rural to metro, LHTFs can serve the <br />housing needs of communities of all types and sizes.