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MINNESOTA <br />HOUSING <br />Local and Statewide Affordable Housing Aid Frequently <br />Asked Questions <br />June 14, 2024 <br />In 2023, the Minnesota Legislature authorized aid payments to counties, cities and Tribal Nations and <br />in 2024 the legislature adopted changes to the aid programs. The goal is to fund affordable housing <br />projects and help organizations provide affordable and supportive housing. <br />Local Affordable Housing Aid (LAHA) is aid to metropolitan local governments of seven counties and 63 <br />cities. LAHA is funded through a new dedicated sales tax in the seven -county metropolitan area. As <br />sales taxes will vary, the amount of LAHA distributed will also vary. <br />Statewide Affordable Housing Aid (SAHA) is funded by state funds appropriated to the Department of <br />Revenue. All Minnesota counties, Tribal Nations and 37 cities will be eligible to receive this aid. <br />Aid payments are made directly to local governments. In the metro, aid is funded by the sales tax for <br />housing. Statewide, aid is funded by state appropriations. <br />Throughout the document, "housing aid" is used when the response applies to both LAHA and SAHA. <br />The information provided in this document does not constitute legal advice and is subject to change. If <br />there are questions regarding how program requirements or criteria apply in specific circumstances, <br />please consult with your own legal counsel. <br />Overview and Requirements <br />Why is there a difference between SAHA and LAHA? <br />The primary differences between LAHA and SAHA are the way they are funded, when funding will be <br />disbursed and to whom. <br />Both aid projects have the same eligible uses and requirements except for market rate housing. This is <br />only available in certain non -metropolitan areas using SAHA. <br />What are the eligible uses of housing aid programs? <br />Qualifying projects for aids payable in 2023 are: <br />1 <br />