Strengthening Minnesota's Cooperative Housing Models

At the forefront of progressive housing solutions in Minnesota, Riverton Community Housing is a key player, working closely with the Metropolitan Consortium of Community Developers (MCCD). As we examine critical co-op legislation in our state, it's clear that these initiatives are vital for fostering equitable and stable communities.

According to the data provided by MCCD, cooperative housing stands as an effective strategy to combat income inequality. It empowers communities through shared ownership and sustains vibrant neighborhoods by providing perpetual affordability. These co-ops build a sense of belonging and offer a path to wealth and stability, especially for BIPOC and underrepresented groups. The tradition of cooperative housing is long-standing in Minnesota, with Minneapolis alone home to 35 housing co-ops. This prevalence underscores the community's dedication to shared, equitable housing models that have been part of the city's fabric for years. Despite the positive impact of housing co-ops, they continue to face critical barriers: the scarcity of development capital, financing, down payment assistance, and technical support. These challenges hinder the growth and maintenance of cooperative housing projects, underscoring the need for legislative support and resources.

The 2024 Housing Cooperative Package includes two policy and funding priorities designed to strengthen the cooperative housing sector:

Affordable Housing Cooperative Technical Assistance Fund

This $5 million proposal aims to fund nonprofits and Community Development Financial Institutions to provide essential technical assistance services, free of charge. The focus is on helping housing co-ops across Minnesota to thrive, with particular attention to supporting BIPOC, women, immigrants, veterans, LGBTQ+ individuals, and people with disabilities.

Affordable Homeownership Cooperative Down Payment Assistance Fund

This $25 million one-time funding initiative mirrors the First-Generation Homebuyers Down Payment Assistance Fund. It provides crucial share purchasing assistance for households at or below 115% AMI, enabling them to invest in housing co-ops and build generational wealth.

Additionally, the Minnesota Cooperative Housing Act (Chapter 308C) aims to offer housing co-ops a standardized framework for development. This legislation is crucial for creating a consistent and supportive environment for cooperative housing models to flourish.

The Housing Cooperative Bill Package is a landmark opportunity to reshape Minnesota's housing landscape. By embracing cooperative models, we open doors to homeownership for those who have long been marginalized, creating a ripple effect of opportunity and wealth. This legislative effort, if successful, will not only transform the housing sector but also infuse our communities with the stability and equity they so rightly deserve.