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1 <br /> <br />Local and Statewide Affordable Housing Aid: <br />Frequently Asked Questions <br />In 2023, the Minnesota Legislature authorized aid payments to counties, cities and Tribal Nations. The <br />goal is to fund affordable housing projects and help organizations provide affordable and supportive <br />housing. <br />Local Affordable Housing Aid (LAHA) is aid to metropolitan local governments. LAHA is funded through <br />a new dedicated sales tax in the seven-county metropolitan area. As sales taxes will vary, the amount <br />of LAHA distributed will also vary. <br />Statewide Affordable Housing Aid (SAHA) is funded by state funds appropriated to the Department of <br />Revenue. All Minnesota counties, seven Tribal Nations and 37 cities will receive this aid. <br />Aid payments are made directly to local governments. In the metro, aid is funded by the sales tax for <br />housing. Statewide, aid is funded by state appropriations. <br />Throughout the document, “housing aid” is used when the response applies to both LAHA and SAHA. <br />Note: The information provided in this document does not constitute legal advice and is subject to <br />change. If there are questions regarding how program requirements or criteria apply in specific <br />circumstances, please consult with your own legal counsel. <br />Overview and Requirements <br />Why is there a difference between SAHA and LAHA? <br />The primary differences between LAHA and SAHA are the way they are funded, when funding will be <br />disbursed and to whom. <br />Both aid projects have the same eligible uses and requirements except for market rate housing. This is <br />only available in certain non-metropolitan areas using SAHA. <br />What are the eligible uses of housing aid programs? <br />Qualifying projects are: <br />Page 17 of 27