With a newly extended December 13, 2023, deadline looming, a coalition of affordable housing developers, legislators, state officials and contributors, led by Minnesota Housing Partnership (MHP), want to raise awareness about the State Housing Tax Credit (SHTC) and Contribution Fund (www.mnhousing.gov/shtc-contribution.html). This innovative and highly unique program, administered by Minnesota Housing, allows individual and corporate Minnesota taxpayers to invest in housing across the state and receive a tax credit for 85% of their contribution. The program became available for the first time in October 2023.

State Senator Carla Nelson had this to say at the press conference: “As we gather here today, we are united in our mission to address one of our most pressing challenges: affordable housing, workforce housing, and homeownership.

The Minnesota State Housing Tax Credit Contribution Program is a solution born from collaboration, empathy, and a testament to our commitment to addressing this critical need for accessible, affordable housing in our state. 

It offers a spectrum of participation. Whether a designated contribution to a specific project or a contribution to the General Contribution Pool, every investment will make a difference.

We are not just generating revenue; we are creating homes, fostering communities, and uplifting lives. The impact of this initiative will resonate across multifamily and single-family housing throughout our beloved state of Minnesota. It is not merely about bricks and mortar; it’s about building futures and providing a foundation for prosperity.

Furthermore this program fosters economic growth. It is designed to leverage additional support – private equity – from contributors, which can range from individuals to community banks to employers and other businesses. No other tool works in this way to grow support for affordable homes.

We have heard from communities time and again – we need dependable, sustainable funds for affordable housing in Minnesota. The State Housing Tax Credit provides just this solution.

I am honored to join you as we build a Minnesota where everyone, regardless of their background or circumstances, has a place to call home.”

The fund has received more than $3.5 million in contribution pledges as of November 27, but the coalition wants to drive awareness of the fund to help reach its $11.6 million contribution limit in time for contributions to count in 2023. Last week, Securian Financial, headquartered in downtown Saint Paul and one of the nation’s largest life insurance companies, made a $1 million contribution to the Fund, one of the largest single donations to date.

“We see this as an exciting new opportunity for companies doing business in Minnesota to support affordable and workforce housing throughout the state,” said Suzette Huovinen, senior vice president for Securian Financial. “There is such a pressing need for this housing — and businesses can help address this need while receiving a tax credit for their contributions — so we view this as a common-sense effort. We hope other companies will join us.”

The coalition sees this program as an unprecedented opportunity for corporations and individual Minnesotans to directly support the development of rental and for-sale housing throughout the state. According to the National Low Income Housing Coalition, Minnesota has a significant shortage of affordable rental homes available. Many of these households are severely cost-burdened, spending more than half their income on housing.

“MHP worked with legislators from both parties and across the state to create this new way for people to support housing developments in their communities,” said Anne Mavity, Executive Director of the Minnesota Housing Partnership. “We hope individuals and companies will see this as an opportunity to contribute to housing while also seeing significant savings on their taxes. They can look to https://mhponline.org/tax-credit-contribution-fund-projects/ for projects they may want to designate.”

Individuals and businesses who pay state taxes and meet eligibility requirements can contribute anywhere from $1,000 to $2 million. The program provides a tax credit of 85 percent of the contribution amount, so if you donate $1,000 to the Fund, you receive an $850 credit to offset your Minnesota taxes. Contributors can contribute directly to a specific project or the general contribution pool, which may be awarded to cities, federally recognized American Indian tribes, developers, nonprofits, or public housing or redevelopment authorities.

For interviews with Securian Financial team members, please contact Jeff Bakken, Securian Financial, 651.665.7558, Jeff.Bakken@securian.com.

Press assets can be found at: tinyurl.com/shtc-press 

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About Rochester East Side Development

Eastside Apartments will provide workforce housing to our community. https://mhponline.org/mhp_projects/eastside-apartments/

About Minnesota Housing Partnership
Minnesota Housing Partnership (MHP) advocates for equitable housing policy, produces data-informed research to inform solutions, and delivers community development services across the US. MHP’s efforts are rooted in the tenet that everyone should have a safe, stable place to call home. MHP is an anti-racist/culturally responsive organization and employer. For more information, visit mhponline.org

About Twin Cities Habitat for Humanity
Twin Cities Habitat for Humanity brings people together to create, preserve, and promote affordable homeownership and advance racial equity in housing. Since 1985, more than 1,700 families have partnered with Twin Cities Habitat to unlock the transformational power of homeownership. Twin Cities Habitat is one of the highest-regarded Habitat for Humanity affiliates nationwide. www.tchabitat.org. The affiliate will host the Jimmy & Rosalynn Carter Work Project in the fall of 2024.

About Minnesota Housing
Minnesota Housing, the state’s housing finance agency, works to provide access to safe, stable and accessible housing Minnesotans can afford in a community of their choice. In 2022, the agency distributed $2.18 billion in resources and served over 109,000 households. Minnesota Housing is administering the State Housing Tax Credit and Contribution Fund. For more information, visit mnhousing.gov.

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