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
What is Small NOAH?

Small NOAH is a Greater Minnesota Housing Fund (GMHF) program which promotes and finances the acquisition and rehab of existing properties to preserve them as affordable housing options for residents. Small NOAH property acquisition is more cost effective than new building development and is more accessible for new emerging developers.

Preserving Naturally Affordable 4-40 unit multifamily housing in Minnesota

  • GMHF’s Small 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%
Small NOAH Program Successes

Bell Lofts, Minneapolis, MN

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.

Read the Program Brochure
Technical Assistance

Technical Assistance (TA) support is available 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.

Who can I Contact for More Information?

For More Information Contact:

John Rocker
Director of Lending

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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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