NOAH Impact Fund

NOAH Impact Fund preserves naturally occurring affordable housing (NOAH) by connecting developers and owner-operators with social impact investors.

NOAH Pool I has preserved 701 housing units, and NOAH Pool II, which launched in 2024, is expected to preserve another 550 units.

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NOAH Pool II Is Currently Deploying Funds for Affordability

GMHF’s NOAH Impact Fund supports economic vitality in the Twin Cities by working to keep affordable homes affordable. Our social impact fund works to keep Minnesotans in their communities by keeping NOAH units from losing affordability while offering investors a double bottom line of social return and economic return.

What Is NOAH?

NOAH (naturally occurring affordable housing) refers to residential rental housing that are affordable without federal government subsidies. These properties are typically Class B and Class C rental buildings or complexes built between 1940 and 1990 with more than 50 rental units. The rents are relatively low compared to the regional housing market.

NOAH units are the most common affordable housing available in the United States. In fact, three quarters of all affordable units in the Minneapolis-Saint Paul metro are unsubsidized. In 2018, there were around 167,000 NOAH units in the metro, though that number has changed; unsubsidized housing is still most prominent in our market.

These homes are typically located near education, supportive services, employment, and public transportation in communities with low- and moderate-income households. Individuals, families, and seniors in NOAH units are likely to be displaced if these units are no longer available in their neighborhood.

What Are NOAH Impact Fund Goals?

Preserve affordability of naturally occurring affordable housing units for families, individuals, and seniors in the Twin Cities with low and moderate household income
Deploy $50M in social impact investment capital in partnership with mission-minded investors
Invest capital in partnerships with responsible nonprofit and for-profit owner-operators committed to the fund’s social impact goals
Provide full repayment of investor principal in 10 years and a competitive double bottom line (social and economic) return on investment
Maintain 15-year affordability for residents with low- and moderate-household income
Invest in affordable properties in opportunity areas that provide social benefit, including public transportation, gainful employment, high-performing K-12 schools, access to higher education, community services, and health-oriented amenities

What Is NOAH Impact Fund’s Impact?

The NOAH Impact Fund preserves existing affordable housing units and creates opportunities for socially motivated investors, owner-operators, and communities in key areas. NOAH preservation:

Maintains affordability by creating long-term options for properties more likely to lose affordability if acquired by profit-seeking parties
Supports communities by preserving properties near schools, jobs, transit, and other opportunities for Minnesotans with low and moderate household incomes
Prevents displacement of residents, ensuring people can stay in their homes and afford to live there long term
Stabilizes properties, supporting necessary renovations and management changes for quality affordable housing for residents

Why Is NOAH Preservation Necessary?

Like many metropolitan regions across the US, the Twin Cities is experiencing a loss of affordable housing faster than new housing can be developed. National investors have been acquiring NOAH properties and often aggressively raising rent by 10-15% or operating under poor management with many properties in disrepair.

These are the conditions that create a need to preserve housing in our region. NOAH Impact Fund supports stability for low- and moderate-income residents by linking impact investment with owner-operators committed to creating housing that feels like home. Helping communities feel relief from financial pressures or rising costs, reducing the likelihood of displacement, and increasing stability overall.

Safe, stable, and affordable housing does more than provide shelter — it creates lasting benefits for individuals, families, and communities:

Opens doors to opportunity: Stable housing helps individuals and families access career and economic opportunities for long-term success.
Eases financial strain: With affordable rent, families can free up income for necessities like nutritious food and healthcare.
Improves health and well-being: Reduced stress from housing instability leads to better physical and mental health, lowering healthcare costs.
Supports children’s education: Kids in stable homes are safer and better prepared to succeed in school.

What Does GMHF Do for NOAH Residents?

We know that stable housing makes all the difference for residents, especially Minnesotans living in NOAH units. The NOAH Impact Fund works to preserve NOAH units to keep them affordable. Even so, residents may find themselves in a building that is sold to an investor that plans to upscale the property and displace the current residents.

GMHF has compiled many available resources that can support residents with housing needs.