Minn. R. 4900 § 4900.3727
ELIGIBLE USES OF FUNDS.
Operative Text
A. The proposed housing development must consist of living accommodations for persons and families. Nursing homes, board and care facilities, and supervised living facilities licensed by the Department of Health or a delegated local department of health are not eligible housing developments, nor are properties where all residents require an individual 24-hour plan for supervision, medical, or health care. B. The assisted units in the proposed housing development must provide rental housing for persons and families whose gross incomes, at the time of initial occupancy, do not exceed 60 percent of median income as determined by HUD for the metropolitan area. This median income may be adjusted for family size for families with five or more people. A household with Section 8 project-based or voucher assistance is deemed to meet the income requirements of this item. C. The proposed housing developments must consist of a minimum of four rental housing units. D. The use restrictions in this part must remain in effect until the later of: (1) the date on which the loan is repaid or the grant agreement is terminated; or (2) the date that is 15 years from the closing date of the loan or grant. E. At least 75 percent of funds in the housing trust fund program must be used for the benefit of persons and families whose gross incomes, at the time of initial occupancy, do not exceed 30 percent of the median family income for the metropolitan area. This median income may be adjusted for family size for families with five or more people. A household with Section 8 project-based or voucher assistance is deemed to meet the income requirements of this item.
Minn. R. 4900 § 4900.3727 sets out which housing developments qualify for housing trust fund assistance in Minnesota. Eligible projects must offer rental housing with at least four units for persons and families earning no more than 60 percent of HUD-determined area median income, while at least 75 percent of trust fund dollars must serve households at or below 30 percent of median income. Certain institutional facilities—such as nursing homes, board and care facilities, and supervised living facilities—are explicitly excluded, and use restrictions tied to the funding must remain in place for at least 15 years or until the loan or grant is fully resolved, whichever is later.
Plain English — not legal advice.
Developers and property owners seeking housing trust fund financing under Minn. R. 4900 § 4900.3727 generally ensure their projects consist of at least four rental units and serve households within the applicable income thresholds at initial occupancy. Compliant operators maintain documentation of tenant income certifications and understand that the affordability and use restrictions attached to the funding run for a minimum of 15 years from closing or until the loan or grant is terminated. Projects that function primarily as licensed care or supervised living facilities do not qualify, so operators typically confirm their development's classification before applying.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Minn. R. 4900 § 4900.3727 establishes income-based eligibility standards for rental housing funded through Minnesota's housing trust fund program, meaning tenants in qualifying developments generally earn at or below 60 percent of area median income—and a significant share of units must serve households at or below 30 percent. Households with Section 8 project-based or voucher assistance are treated as automatically meeting the income requirements under this provision. Tenants who believe a funded property is not honoring its affordability obligations may contact a local tenant-rights organization or the relevant housing agency to understand available complaint or reporting processes.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 30, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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