Affordable Housing Incentive Fund

The Affordable Housing Incentive Fund (AHIF) supports the creation and preservation of affordable rental housing in Hennepin County, Minnesota. Since its inception in 2000, the program has facilitated over 10,000 units of affordable housing. The 2025 AHIF funding cycle focuses exclusively on affordable multifamily rental developments, with no geographical restrictions within the county. Projects must comply with established policies and standards to ensure affordability, equity, and sustainability. Eligible projects must reserve units for households earning at or below 50% of the area median income (AMI), or 60% AMI if leveraging low-income housing tax credits. Rent limits are aligned with HUD's guidelines to ensure affordability, capped at 30% of household gross income for housing costs. Applicants must demonstrate compliance with fair housing regulations and the county’s anti-discrimination and anti-displacement policies. Furthermore, any project involving property acquisition or tenant relocation must adhere to federal relocation guidelines and submit a relocation plan. Applications must include compliance with construction standards, including local building codes and HUD’s Uniform Physical Condition Standards. The program encourages the integration of energy-efficient designs and materials, adherence to Section 504 accessibility standards, and recycling practices during construction. Outreach and contracting efforts should prioritize small businesses, women-owned businesses, and BIPOC-owned enterprises. Environmental assessments are required for developments with five or more units. Funding is awarded as deferred low-interest loans, typically at 1% simple interest over a 30-year term. Developers must close on all project financing within 18 months of the award, with a possibility of extensions under limited circumstances. Loan agreements include specific terms regarding repayment, affordability compliance, and reporting. Non-compliance with project timelines or significant changes without county approval may lead to rescinding the funding commitment. AHIF mandates detailed tenant selection and compliance reporting for the duration of the affordability period. This includes affirmative marketing plans, acceptance of housing vouchers, low-barrier tenant screening, and annual reporting of rental and household data. Projects that integrate supportive housing must provide tailored services to residents, ensure accessibility, and follow culturally sensitive practices. Developers are encouraged to reserve units for Hennepin County Human Services and Public Health (HSPH) populations, with specific requirements for tenant selection and unit management. Applications must be meticulously prepared to demonstrate project feasibility, compliance with guidelines, and alignment with community needs. For further details and application assistance, developers are encouraged to contact the AHIF Program Manager at [email protected] or consult the program manual.