Minn. R. 4900 § 4900.3743
ELIGIBLE USES OF FUNDS.
Operative Text
Subpart 1. Generally. 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 the 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 subpart. Subp. 2. Operating subsidy-unique costs. The agency may fund those costs of operating rental housing that are unique to the operation of low-income rental housing and supportive housing. To be eligible for operating subsidy-unique costs funding under the housing trust fund program, applicants must satisfy the requirements in items A and B. A. The proposed operating costs must be critical both to the economic viability of the housing development and to serving the population for whom the housing is designed. Examples of operating costs that are eligible for funding under this subpart include front desk operation, costs of operating service-related space, security, tenant coordinator, and interpretative services. B. The housing trust fund program funds must be used to provide an operating subsidy for a housing development in which the assisted units provide 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. Subp. 3. Operating subsidy-revenue shortfall. The agency may provide an operating subsidy to cover a housing development's revenue shortfall. To be eligible for operating subsidy-revenue shortfall funding under the housing trust fund program, applicants must satisfy the requirements in items A and B. A. The operating subsidy funds must be used to reduce the difference between the costs of operating the housing development and the rents that the tenants expected to reside in the assisted units can afford to pay. The operating subsidy funds may not be used to pay an asset management fee to the owner of the housing development. B. The housing trust fund program funds must be used to provide an operating subsidy for a housing development in which the assisted units provide 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.
Minn. R. 4900 § 4900.3743 governs how money in Minnesota's housing trust fund program may be spent. At least three-quarters of the fund must serve households earning no more than 30 percent of the area median family income at the time they first move in, with income limits adjustable for larger families. The rule also permits the fund to cover certain operating costs unique to low-income and supportive housing, as well as subsidies that bridge the gap between what it costs to run a development and what low-income tenants can actually afford to pay, provided those tenants earn no more than 60 percent of the HUD-determined area median income.
Plain English — not legal advice.
Operators and developers seeking housing trust fund program dollars under Minn. R. 4900 § 4900.3743 generally ensure that their tenant income certifications at initial occupancy are carefully documented to demonstrate compliance with the 30-percent or 60-percent median income thresholds, depending on the funding category sought. For operating subsidy requests tied to unique costs—such as front desk operations, security, or interpretive services—compliant applicants typically show that those costs are critical both to the development's economic viability and to serving the intended population. When seeking revenue-shortfall subsidies, operators generally demonstrate that funds are being used to close the gap between operating costs and affordable rents, and they should be aware that asset management fees paid to the owner are explicitly excluded from eligible uses.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Residents living in housing developments that receive Minnesota housing trust fund program assistance under Minn. R. 4900 § 4900.3743 benefit from rules that direct the majority of those funds toward the lowest-income households—those at or below 30 percent of area median income. Households with Section 8 project-based or voucher assistance are automatically considered to meet the income requirements under this provision, which can be relevant if a question arises about a household's eligibility. Tenants who believe a development is not being operated in accordance with these income-targeting or eligible-use requirements may consider contacting the Minnesota Housing Finance Agency or a local tenant-rights organization to understand available options.
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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