The majority of affordable rental housing in the United States can be found in modest apartment buildings in every city and suburb.
These units are home to every stripe of renter and receive no federal or state subsidy at all. These Class B and Class C rental units comprise the bulk of affordable housing in the country today, but there is nothing to guarantee that they will stay that way.
Nationwide, this affordable rental housing is at risk. In prime real estate markets, this “naturally occurring affordable housing’ (NOAH) is often operated under poor management or in disrepair. Speculators are eager to snap up these developments, upgrade a few amenities, and convert these once-affordable homes to higher-market rents. This loss of affordability threatens the stability of individuals and families who are displaced, and even entire communities.
In response, Greater Minnesota Housing Corporation (a subsidiary of the Greater Minnesota Housing Fund) is launching the NOAH Impact Fund to finance the acquisition and preservation of naturally affordable rental housing to preserve the affordability of such units for the long term. All investments target rental properties at risk of conversion to higher rents and the threat of displacement of low- and moderate-income residents.
The McKnight Foundation is sponsoring the initial research, development, and planning of the NOAH Impact Fund to preserve naturally occurring affordable housing in the Twin Cities.
For more information, please visit the NOAH Impact Fund website.