Small NOAH Financing

The Small Naturally Occurring Affordable Housing (NOAH) program offers low cost impact capital to finance small landlords & developers of color for the preservation of naturally affordable rental housing

Preserving Naturally Affordable 4-40 unit multifamily housing in Minnesota

  • Greater Minnesota Housing Fund’s (GMHF) Naturally Occurring Affordable Housing (NOAH) program provides low-cost capital in the form of first mortgage, mezzanine and gap funding to small landlords and emerging developers of color to preserve NOAH housing stock in communities throughout Minnesota.
  • GMHF’s small NOAH financing is available both in the Minneapolis-St Paul metropolitan area and in urban and rural communities in Greater Minnesota.
  • GMHF’s goal in providing funding resources is to preserve the affordability of NOAH housing stock and improve the quality of the housing for tenants.

Financing Terms

Permanent First Mortgages

  • Term: 10-25 years
  • Amortization: Up to 30 years
  • Interest Rate: Fixed rate for term of loan starting at 30-year Treasury + 2%
  • Loan to Value: up to 80%
  • Debt Coverage Ratio: 1.2 in Year 1

Second Mortgages – Mezzanine

  • Term: 10-15 years
  • Amortization: Up to 35 years or interest only
  • Interest Rate: Fixed rate for term of loan, starting at 1% over First Mortgage
  • Loan to Value: Up to 95%
  • Debt Coverage Ratio: 1.05

Predevelopment Loans

  • Term: Short-term loan to pay for due diligence costs
  • Amortization: Interest only
  • Interest Rate: 5%

Technical Assistance
Technical Assistance (TA) support for new and less experienced owners and developers.

  • TA during predevelopment & underwriting
  • GMHF TA available for all stages of project: from feasibility through due diligence to closing
  • Additional third-party, project management available if necessary

**Small NOAH funding requires that at least 75% of rental units be income-and rent-restricted at 80% AMI, and 40% of units at 60% AMI or 20% of units at 50% AMI. Up to 25% of units may be unrestricted at market rates.

Small NOAH Program Successes

Bell Lofts

In March 2021, GMHF provided Small NOAH financing for the acquisition and preservation of Bell Lofts, a 25-unit affordable housing development in North Minneapolis, occupied 100% by people of color and developed by New Rules, a Benefit Corporation based in North Minneapolis that seeks to take unproductive buildings in overlooked communities and co-create spaces designed by the community. New Rules is led by founder Chris Webley, an emerging developer of color.  

GMHF provided a first mortgage and a NOAH mezzanine second mortgage. Other sources included owner equity and  a philanthropic grant.

For More Information Contact:

Miranda Walker
Senior Loan Officer









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Greater Minnesota Housing Fund
332 Minnesota Street
Suite 1650 West
Saint Paul, MN 55101

Main 651.221.1997
Fax 651.221.1904

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