Not every housing job is new construction. Some of the steadiest work around is taking a tired older house and making it right again, and a new round of state money is aimed squarely at that.
According to Minnesota Housing's Oct. 1 announcement, the agency is putting $8 million toward preserving 34 existing homes in Hennepin, Ramsey and Anoka counties as affordable places to own. The money comes through the Community Stabilization – Naturally Occurring Affordable Housing Single Family Program, which helps nonprofits buy, rehab and resell homes to income-eligible buyers earning up to 115% of the area median income.
"Preserving the homes we already have is an important part of addressing Minnesota's housing needs," said Minnesota Housing Commissioner Jennifer Ho. "These investments can keep homes within reach of families, strengthen neighborhoods and create opportunities for more Minnesotans to build stability and wealth through homeownership."
One thing to keep in mind: these are recommendations. The agency says the selections are subject to Minnesota Housing board approval and individual grant contracts.
Who gets the money
Land Bank Twin Cities, Inc. would receive $5.92 million to preserve 26 homes through its Strategic Acquisition for Community Ownership program. The plan is to buy homes now owned by investors and turn them into affordable homeownership opportunities.
The program is also set up to avoid pushing out people who are renting those houses now. If a home is occupied when the land bank buys it, it may keep renting it for a while before selling it, depending on the tenant's needs, how much rehab work it needs and other factors.
PRG, Inc. would receive $2.08 million to rehab eight homes before selling them to income-eligible buyers. The state lists the kind of work involved: kitchens and bathrooms, building exteriors, energy-efficient mechanical systems and appliances, plus work to deal with lead, asbestos, radon, water quality and other health and safety problems. PRG plans to put 30-year deed restrictions on the homes so they stay affordable.
Neither announcement names the contractors who will do the rehab work.
Where the money came from
The Community Stabilization Program was created during the 2023 legislative session with a one-time appropriation to preserve what housing folks call naturally occurring affordable housing: older homes and apartments that are affordable without a subsidy. Minnesota Housing received five proposals asking for nearly $14.9 million this round. It is recommending partial funding for two of them, using the program's full $8 million.
The program favors projects that respond to market pressures or major rehab needs that could lead to displacement or the loss of affordable owner-occupied homes. It also looks at whether projects can serve lower-income households, keep homes affordable, reach underserved communities and help low- and moderate-income families buy a home.
Because the 2023 money was a one-time appropriation, this round uses it up. Whether there's more after this depends on what lawmakers decide.
Why it matters for Contractors
Thirty-four houses doesn't sound like much, but scattered-site rehab is bread-and-butter work for small remodelers and trade contractors across the metro. The state's list of likely work reads like a remodeler's job board: kitchens, baths, exterior work, energy-efficient mechanical systems and appliances, and the health and safety work that comes with older houses.
That last part is worth paying attention to. Lead, asbestos and radon work requires the right certifications and safe work practices, and contractors who already have them will have an edge. Energy-efficient mechanical upgrades call for HVAC and plumbing contractors comfortable with high-efficiency equipment.
Scattered-site work has its own rhythm, too. Instead of one big job, it's a string of smaller ones spread across three counties, each with its own surprises once the walls are opened up. Crews that can scope a house quickly, price it honestly and keep a few jobs moving at once tend to do well with this kind of client. And because some homes may stay occupied by renters for a while, being respectful of people living in the house is part of the job.
Nonprofit buyers like Land Bank Twin Cities and PRG often line up a pool of contractors they can call on for scattered-site work. If you're a small remodeling firm in Hennepin, Ramsey or Anoka County, it's worth reaching out to both organizations to ask how they bid rehab jobs, and to get on their list before the homes start coming through the door.