Preserving affordable housing for the long term

Hennepin County is investing in solutions to save and stabilize affordable housing.

Since Hennepin County created its Affordable Housing Incentive Fund in 2000, we have helped finance over 10,000 homes with requirements to remain affordable for at least 30 years. Over the next 10 years, the affordability requirements for more than 1,600 of these units will expire. Owners of 20% of those properties are already seeking new financial investment to keep the housing open, and many others will require additional investment in the coming years.

In response, Hennepin County has refined its multifamily housing preservation strategy to tailor our interventions to property capital needs, owner capacity, affordability levels, and the property’s competitiveness for other funding sources. It’s all aimed at enabling existing affordable properties to maintain healthy and high-quality housing.

Building more housing is the best and most effective way to close the affordable housing supply gap. But preserving existing affordable housing is increasingly critical to protect long term affordability and housing quality, extend the life of critical community assets, and ensure residents do not face displacement.

Hennepin County’s housing preservation strategy

Preserving affordable housing can look like many things. The classic approach is comprehensive preservation, which includes addressing project financials, right-sizing debt, and increasing reserves in addition to substantial rehabilitation of the building. Alternatively, in some cases the best preservation strategy is collaborative problem-solving and technical assistance across funders, neighbors, owners, property managers, and tenants.

In other cases, the best preservation strategy is more targeted and includes only those repairs necessary to keep homes safe to live in and efficient for owners to operate. For example, a targeted stabilization approach may include updating aging windows, replacing the boiler or installing new siding or roofing. Hennepin County has been leaning into funding targeted stabilization projects that can address critical repairs quickly and efficiently through simple capital stacks that avoid the tax credit market and lengthy multi-funder closings.

Below are three projects that demonstrate how Hennepin County’s preservation strategy secures homes, supports vulnerable residents, enhances neighborhoods, and maintains affordability for decades to come.

Arbor Lakes Commons: Maple Grove

Arbor Lakes Commons is a 50 unit senior housing community serving residents at or below 50% of the area median income (AMI). Nearly all units include rental assistance, making it a critical source of stable housing for older adults in Maple Grove. Nonprofit CommonBond Communities owns and operates Arbor Lakes Commons.

To stabilize the property after increased operating costs and delayed maintenance following the pandemic, Hennepin County supported this property in two ways. First, in 2024, Hennepin County awarded a Repair + Grow grant to help CommonBond implement their portfolio-wide stabilization plan, with specific action items for each property type. For Arbor Lakes Commons, CommonBond staff weighed options and began action on a long-term Rental Assistance Demonstration conversion, a federal program that allows public housing and other HUD-assisted properties to convert to long-term Section 8 rental assistance contracts.

In 2026, Hennepin County awarded Local Affordable Housing Aid funding of $575,000 to replace leaky windows and fill a critical gap in the upcoming refinancing and rehabilitation plan. This plan will secure the property’s affordability and catalyze other major capital improvements—from roof and boiler replacements to upgraded sidewalks and enhanced energy efficiency.

These investments prevent the displacement of seniors, preserve deeply affordable suburban housing options, and maintain accessible units exceeding federal requirements.

Portland Village: South Minneapolis

Since 2001, Portland Village has provided 26 family sized supportive housing townhomes in the Ventura Village neighborhood. The property includes large multi bedroom units for families exiting homelessness, on site services, security, community amenities, and proximity to transit, employment, and essential services. Twenty units are dedicated to households exiting homelessness, and five units support residents with disabilities.

After years of heavy use, security concerns, and deferred maintenance, the property required substantial repairs to remain viable. Hennepin County contributed $775,000 in Supportive Housing Strategy capital funding, which allowed Portland Village to complete upgrades to improve the living environment for residents and reduce operating costs. In addition, the new funding extended the affordability through 2074.

“Portland Village is a powerful example of preservation investment transforming a property, improving the lives of the families who call it home, and preserving a critical community asset for future generations,” said Jessie Johnson, Co-President and CEO of RS Eden. “These updates help us address issues proactively, reduce long-term maintenance demands, and ensure that these supportive and affordable homes remain safe, stable, and financially sustainable.”

The Crest: Brooklyn Center

The Crest is an affordable housing project in Brooklyn Center with 171 units affordable at 60% AMI. It was built in 1973, has completed major repairs when needed over the years, and is in good shape except for the original elevators in the building. These elevators serve 13 floors and 122 units, of which 11 are Section 811 units designed for people with significant long-term disabilities. But the Section 811 units had been assessed in 2024 and found to not to be within standard operating conditions. The owner, Aeon, knew they didn’t need a full recapitalization to modernize the elevators, so instead applied for funding for a stabilization project.

Hennepin County provided $632,136 from its Community Development Block Grant (CDBG) awards to keep this property safe and affordable and stabilize long-term housing options in Brooklyn Center. This funding will preserve aging affordable housing within suburban Hennepin County, and it will also save larger funding awards for projects requiring more significant investment.

Preservation as a long-term strategy

Preservation helps to maintain quality affordable housing across the county through protecting existing affordable housing from deterioration or loss, supporting vulnerable residents, extending the life of buildings, stabilizing operations, and maximizing public investment. It will only be through this preservation strategy—paired with accelerated new construction—that we will close the gap between the 48,125 renter households below 30% AMI and the 17,020 homes affordable and available to them.

For multifamily property owners

Are you an owner concerned about repair needs or the next phase for an affordable multifamily housing property? Here are our top three recommendations:

• Be proactive! Start reading the property’s loan documents to confirm funding sources, requirements and options.
• Reach out to the property’s funders as soon as possible if you’re concerned about meeting requirements. If you received funding from Hennepin County or the Hennepin County HRA, reach out to us at housing@hennepincounty.gov.
• Watch for our 2027 Coordinated Affordable Housing Request for Proposals and request a technical assistance session for help developing your preservation project pathway.