Minneapolis Community Planning and Economic Development Department

Minneapolis Homes was created in response to a City Council directive in 2015 to incentivize housing development on city-owned vacant land. An infill housing task force brought forward recommendations to market, sell, and develop government-owned vacant lots; increase affordable housing production; support minority contractors and developers; and build/keep wealth in communities.

The program began with four strategies: 1) provide a homebuyer incentive to build new homes on vacant lots; 2) promote mixed-income neighborhoods throughout Minneapolis by creating a long-term affordability homebuyer financing tool; 3) build new homes on city-owned vacant lots by providing value gap development assistance; and 4) invest land-sale proceeds to further program goals.

To meet city climate goals, sustainable building requirements and incentives were added for Minneapolis Homes–funded projects. Minneapolis Homes was originally a single-family new construction program; now the program provides funding for one- to 20-unit construction in alignment of 2040 Comprehensive Plan goals.

And finally, in 2020, the program introduced funding targeting a reduction in displacement.