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2 <br />• Emergency rental assistance for households earning less than 80% of area median income <br />(AMI) as determined by the U.S. Department of Housing and Urban Development (HUD) <br />• Financial support to nonprofit affordable housing providers in their mission to provide safe, <br />dignified, affordable and supportive housing <br />• Development of market rate residential rental properties outside of the metro area if certain <br />conditions are met <br />• Projects designed for the purpose of construction, acquisition, rehabilitation, demolition or <br />removal of existing structures, construction financing, permanent financing, interest rate <br />reduction, refinancing and gap financing of affordable housing <br />For more information, Minnesota Statute has the complete list of LAHA qualifying projects (see <br />subdivision 4) and SAHA qualifying project (see subd. 4). <br />What is gap financing? <br />Gap financing is the difference between the property costs (including acquisition, demolition, <br />rehabilitation and construction) and <br />• The market value of the property upon sale <br />OR <br />• The amount the target household can afford for housing (based on industry standards and <br />practices) <br />What are the affordability requirements of LAHA and SAHA? <br />Specific income requirements are provided for: <br />• Emergency Rental Assistance <br />o Less than 80% of AMI <br />• Homeownership <br />o At or below 115% of the greater of state or area median income <br />o Priority for those at or below 80% <br />• Rental Housing <br />o At or below 80% of the greater of state or area median income <br />o Priority for those at or below 50% <br />State and area median incomes are determined by HUD. <br />While there are no income requirements or income qualification for projects supporting nonprofits, <br />organizations should be providing affordable or supportive housing. <br />Page 18 of 27