Greater Minnesota Housing Fund has numerous opportunities for socially motivated investors to make a difference in the lives of lower-income Minnesotans and to earn an economic return.
Three ways to participate:
CDFI Development Loan Fund – Program Related Investments at work
GMHF has a $42 million Development Loan Fund that it uses to provide low-interest loans to affordable housing developments in Minnesota communities, including new construction and rehabilitation of existing properties. Private and charitable foundations can make program related investments (PRIs) or mission related investments (MRIs) to GMHF to build this revolving loan fund. PRIs/MRIs made at low interest rates enable GMHF to provide low-cost capital to promising affordable housing developments and bring them to fruition. Federal, state and local government agencies are able to contribute to this fund in addition to foundations and banks. Loans made to GMHF are repaid with interest.
Minnesota Equity Fund – Investing in LIHTC
The Low-Income Housing Tax Credit (LIHTC) is the federal government’s primary program for encouraging the investment of private equity in the development of affordable rental housing for low-income households. Corporations and banks are important contributors to affordable housing development through their investments in Low Income Housing Tax Credits (LIHTC). These transactions are typically organized as limited partnerships or limited liability companies, and investments are made through those entities. Investors can earn an economic return on their capital, and bank investors can receive positive consideration toward their rating under the Community Reinvestment Act (CRA).
NOAH Impact Fund – Preserving at-risk affordable housing
The NOAH Impact Fund preserves the long-term affordability of at-risk “naturally occurring affordable housing” (NOAH) likely to be upgraded to market rate units due to market speculation. The Fund seeks Minnesota charitable institutions, financial institutions, corporations, and wealth management advisors interested in making socially motivated impact. The Fund also seeks qualified developers and owner-operators interested in a double bottom line to pursue a joint venture relationship to preserve affordable rental housing in the Twin Cities metro.
LIHTC funds managed by the Minnesota Equity Fund will help investors minimize the risk by investing in a variety of LIHTC projects. MEF and its joint partner, Cinnaire, will provide multiple services including underwriting, asset management, and annual compliance.
Explore your options
If you would like to connect with GMHF about your investment interests and how you can invest in affordable housing, please fill out our Investment Inquiry.