GMHF Investors & Funders

GMHF issues $100M in lending to create and preserve affordable housing all across Minnesota each year, and we cannot do this work alone. Join other socially driven investors to make a difference in local communities — while also earning an economic return.

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GMHF Investment Opportunities

As a CDFI, we have multiple opportunities for banks, philanthropic organizations, and other corporations to invest in affordable housing. We also accept one time or recurring donations from individuals.

Why Invest

Every home is the foundation for safe and healthy people and places. When you work with GMHF to invest in affordable housing, communities stabilize and thrive. Minnesotans of all ages and economic and social backgrounds benefit from having housing they can afford. Health and wellness, educational attainment, career placement, and longevity are all made stronger with safe, stable housing.

Your investment can have a huge impact on communities by supporting GMHF in:

Creating new affordable housing and supporting economic and community development in all areas of the state
Preserving existing affordable housing and preventing the loss of naturally occurring affordable housing units
Supporting Minnesotans across the housing continuum, including creation of supportive housing, service-enriched housing, and ending homelessness
Supporting emerging developers who bring community-based solutions
Building partnerships that support innovation in housing and health
Creating capacity in rural and Tribal areas to meet unique housing needs

We are certified by the U.S. Department of Treasury as a Community Development Financial Institution (CDFI) and a 501(c)(3) nonprofit organization. GMHF is rated Four-Star, AA Policy Plus by Aeris and is a member of the Federal Home Loan Bank of Des Moines.

Where to Invest

If you’re interested in the social return of creating affordable homes in Minnesota communities as well as a tangible economic return, we have numerous investment opportunities for you to consider:

GMHF’s Revolving Loan Fund is our main lending product and provides low-interest loans to affordable housing developers in Minnesota for both new construction and the 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.
Minnesota Equity Fund (MEF) invests in Low-Income Housing Tax Credit (LIHTC), 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 contribute to affordable housing development through their investments in LIHTC. 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). MEF and its joint partner, Cinnaire, provide multiple services including underwriting, asset management, and annual compliance.

Program-Related Investments and Equity Equivalent Investments

Foundations, corporations, and government entities can invest in the GMHF Revolving Loan Fund through a program-related investment (PRI) or equity equivalent investment (EQ2).

A PRI or EQ2 supports our variety of lending products, including predevelopment, acquisition, construction/bridge, first mortgage, and mezzanine (second mortgage). Terms are fixed, with interest paid quarterly and principal repaid upon maturity.

With PRIs and EQ2s, GMHF shoulders the risk. Our loan default rate is less than 1% due to robust due diligence and best-in-class underwriting and asset management. We also have significant equity in the Revolving Loan Fund, putting us in the position to pay back investments even if a project defaults.

Bank Participation Loans

Interested in making a short-term investment and earning Community Reinvestment Act (CRA) credit? Let us do the work for you.

Banks can help our funds stretch further by investing in 45% of a short-term construction/bridge loan (usually 18-24 months) for a specific project, while GMHF carries the other 55% of the balance. This frees up resources in GMHF’s Revolving Loan Fund for more projects. GMHF handles all due diligence and underwriting, while banks earn interest and are fully repaid upon maturity.

Our Investment Impact in 2024

GMHF and our Minnesota Equity Fund (MEF) investment in affordable housing changes lives.

$52.2M

loans closed

2,240

affordable housing units financed

$663.3M

total development costs

Our Supporters and Funders

We are grateful to our funders and investors for partnering with us to ensure that everyone in Minnesota has a safe, decent, and affordable place to call home. Together, we’re building a stronger, more resilient housing ecosystem across the state.

Founding Funders