What are Housing Trust Funds?
Two potential stable sources for housing trust funds are pooled tax increment, especially from housing TIF districts and tax levies which are available to Housing and Redevelopment Authorities. The Cities of Chaska and Minneapolis generate pooled tax increment to provide annual contributions to housing trust funds. Hennepin County HRA uses its annual tax levy for a housing trust fund.
In the summer of 2017, the Minnesota Legislature included provisions that encourage local communities to establish housing trust funds in a bill that passed during the 2017 legislative session. This legislation allows local governments to establish a housing trust fund or to participate in a joint powers agreement to establish a regional housing trust fund. Click here to learn more about these provisions.
What problems do housing trust funds solve?
Where are these policies most applicable?
Communities interested in developing comprehensive and effective housing strategies should consider how a housing trust fund fits into the overall array of housing programs and policies available in the community. In this connection, it is important to note that housing trust funds using only state and local funds, or with local funds distinguished from federal funds, do not come with federal restrictions that constrain the use of most of the subsidy dollars available for housing at the state and local levels. The beauty of a housing trust fund is that the jurisdiction can control exactly how the funds are spent.
Related Case Studies
Red Wing Affordable Housing Trust Fund
Red Wing, Minnesota, a town with less than 20,000 people, has created a housing trust fund...
The Affordable Housing Incentive Fund (AHIF) Program was created by the Hennepin County Housing and Redevelopment Authority Board of Commissioners to work with municipalities...