Affordable housing is a major issue in both the Twin Cities and greater Minnesota, with housing and rental costs rising in the past decade. Minneapolis has been identified as having one of the worst housing shortages in the country. Limited availability of affordable housing is considered a significant obstacle to economic development in rural areas.
Minnesota Housing Commissioner Jennifer Ho emphasized the widespread challenges with housing across the state, stating that everyone is talking about it. A tax credit program was introduced in October 2023 to address this issue. Taxpayers contributed $7 million last year to fund 23 projects statewide, with more than a third of the projects located in greater Minnesota, specifically in small towns with populations under 2,500.
A recent press conference highlighted the impact of the tax credit program, with a tour of a 60-unit affordable housing complex in St. Louis Park. The complex, which includes mostly workforce housing, is set to open soon. Project for Pride in Living, led by President and CEO Paul Williams, is one of the organizations involved in the program. The tax credit program has allowed for the purchase of solar panels for two projects, including the one in St. Louis Park.
Overall, the tax credit program is seen as a tangible way for individuals to invest in creating more affordable housing opportunities across the state. This initiative is aimed at addressing the housing challenges faced by both urban and rural communities in Minnesota.
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