Minnesota commits nearly $350 million to affordable housing

Minnesota Housing is investing $126 million in affordable housing to address the statewide shortage.

The investment announced Thursday is part of a larger $346 million package of public and private funding. The money will go to building or preserving more than 1,800 housing units in communities throughout the state.

Commissioner Mary Tingerthal said the state's current housing crisis is one of the worst in recent years.

"The cost of housing is going up faster than people's incomes," she said. "We're seeing a shortage of low-cost homes for sale for first-time homebuyers and we're losing affordable rental properties at a pretty rapid pace."

Tingerthal said the money will fund 60 projects, offering more than 1,800 units.

She said state lawmakers understand the need.

"They've really understood on a very bipartisan basis that housing is the foundation for success and it really makes sense for the state to invest, alongside with private investors to make this housing possible," Tingerthal said.