We provide a variety of financing options to developers who look to pursue projects in line with our agency’s mission. Here are snapshots of those programs:

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Low Income Housing Tax Credit

The Low Income Housing Tax Credit (LIHTC) program is the key financial tool to raise private equity for the construction or rehabilitation of affordable rental housing. The Washington County CDA is the legal sub-allocator of the tax credits for our county. Credits are awarded based on criteria and procedures set forth in the Qualified Allocation Plan (QAP) and Procedural Manual, which are subject to approval by the Washington County CDA Board of Commissioners.

Related LIHTC Documents:

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Tax-Exempt Bonds

We are authorized to issue tax-exempt and taxable revenue bonds for multi-family housing and facilities projects.

The CDA acts as a conduit issuer that sells bonds to private or nonprofit developers or a municipality that use the proceeds to finance a community building project.

Because they are exempt from federal taxes and in certain cases state taxes, tax-exempt bonds are usually the lowest interest rate option for real estate projects and new equipment purchases.

Tax-exempt bonds can be sold in the capital markets or directly to your bank or another financial institution.

Related Documents:

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GROW Fund

The CDA’s GROW Fund is a gap-financing tool available to developers of rental and owner-occupied housing projects serving low- and moderate-income households, including those with special needs. GROW Funds can be leveraged toward the new construction of housing, acquisition-rehabilitation activities, or preservation of affordability in existing developments. The GROW Fund also supports redevelopment activities sponsored by cities and townships in Washington County.

The Washington County CDA approves GROW fund loans on an ongoing basis.

Please contact Sarah Bellefuil with questions: [email protected]

Related GROW Documents:

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NOAH GROW Fund

In response to the growing number of unsubsidized naturally occurring affordable housing (NOAH) properties with rising rent levels and the volume of currently subsidized affordable units reaching the end of their affordability terms, the CDA has established a set-aside of its GROW Fund specifically dedicated to assist in the preservation of NOAH and expiring affordable housing units.

The NOAH GROW Fund is available to:

  • Provide low-cost financing to preserve housing units with rents affordable at or below 60% of Area Median Income (AMI);
  • Maintain the physical condition and value of aging rental developments;
  • Demonstrate local commitment to affordable housing to state and federal funding partners; and/or
  • Leverage public and private sector funds.

NOAH GROW Funds are available on a first-come, first-served basis. The CDA may determine to fund an application in whole or in part. Please contact Sarah Bellefuil for more information: [email protected]

Related NOAH GROW Documents:

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State Housing Aid Certification

As a condition of receiving housing aid funds from the State of Minnesota through an allocation from Washington County, the Washington County Community Development Agency (CDA) must commit to using housing aid funds to supplement, not supplant, existing locally funded housing expenditures, so that the Washington County CDA is using the funds to create new housing programs or to expand existing housing programs.

Between 2023 and 2024, the Washington County CDA reduced its expenditure on Homeownership Education, Counseling, and Training by $47,795. The amount of local funds spent for this activity is based on actual program costs. An increase in state and federal grant awards allowed for a decrease in CDA levy funds required for program costs in 2024. State and federal grant funds for this activity vary from year to year, and CDA levy funds supplement these awards. No LAHA/SAHA housing aid funds were used for this activity.

Between 2023 and 2024, the Washington County CDA reduced its expenditure on Acquisition, Construction, Rehabilitation, Adaptive Reuse, Improvement, Financing, and Infrastructure of Residential Dwellings by $1,213,486. The higher expenditure for these activities in 2023 is a result of two primary factors:

  1. The purchase of 3 townhome units in 2023 by the Washington County CDA to be rented to income-eligible households, and
  2. A higher number of multifamily rental development finance closings utilizing CDA GROW funds in 2023 than in 2024. In both 2023 and 2024, $500,000 of CDA levy funds were budgeted for the CDA GROW gap financing program. However, multifamily rental developments typically take multiple years to receive full funding and achieve finance closing, which is reflected in variable local expenditures from year to year for this activity.

The Washington County CDA is committed to using its allocation of housing aid funds to supplement locally funded housing expenditures.

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Tax Increment Financing

The Washington County CDA has the ability and authority to establish site-specific tax increment financing (TIF) districts throughout the county.

If you are interested in creating a TIF district, qualifying projects are typically for housing, redevelopment, infrastructure and other public community improvements.

The CDA uses tax increment financing to accomplish a variety of objectives that align with our mission, from rehabilitating contaminated land and eliminating blight to supporting neighborhood services and achieving local redevelopment objectives.

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