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4 <br />Local Housing Trust Funds in Minnesota <br />Minnetonka <br />Population: 53,266 <br />In 2020, the City of Minnetonka established its <br />Affordable Housing Trust Fund (AHTF). While the fund <br />was initially created to provide rental assistance to <br />households impacted by COVID-19, in 2021 the city <br />received special legislation to transfer the existing <br />balance of “pooled” tax increment, approximately $5 <br />million, to its HTF for expanded affordable housing <br />opportunity. The special legislation allowed the <br />city to diversify the level of affordability beyond the <br />requirements under TIF law. <br />Currently, Minnetonka’s AHTF has approximately $7 <br />million. Accomplishments to date include assisting <br />187 households with up to $1,500 in rental assistance, ensuring deeper affordability for more units in <br />three large mixed-income rental properties, and providing emergency assistance to households at risk of <br />homelessness. Plans for 2023 include expanding a down-payment assistance program. <br />Chisago County <br />Population: 57,469 <br />“Having the Housing Trust <br />Fund in our toolbox has <br />been getting the attention of <br />developers and we are optimistic to <br />have projects underway in the near <br />future.”— Nancy Hoffman, Chisago County HRA-EDA <br />Photo: Multifamily housing building in Minnetonka, MN <br />Chisago County adopted its HTF in 2021, with a focus on workforce housing for moderate, low and very <br />low-income residents and households. The County designated the Chisago County HRA/EDA as the fund <br />administrator, a good fit as the HRA/EDA brings extensive experience in developing, managing, and owning <br />affordable properties. The HRA/EDA funded the HTF from its existing budget, with an initial fund of $150,000. <br />It has now grown to $556,000, with funds added in 2022 and 2023 from HRA/EDA-owned housing that <br />generates revenue. The HRA/EDA is also soliciting gifts, grants, and donations by corporations or individuals <br />and may add proceeds from future sale of HRA/EDA parcels. <br />According to Nancy Hoffman, Executive Director <br />of the Chisago County HRA-EDA, “In our area <br />(Chisago County) it can be difficult to attract <br />affordable housing developers because we are just <br />far enough out of the metro area that they cannot <br />get the rents to make the project cash flow as they <br />can just a few miles away.” <br />Libby Murphy, Director of Policy, State Legislative Lead <br />libby.murphy@mhponline.org : : 612-716-9703 <br />Elizabeth Glidden, Deputy Executive Director <br />elizabeth.glidden@mhponline.org : : 612-396-2288 <br />MHP is an equal opportunity provider. mhponline.org. ©2023 Minnesota Housing Partnership <br />CONTACT US <br />Note: Sources and uses for LHTFs, and other details, are <br />identified in this report to the best of our ability. Please <br />contact MHP with any corrections.