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Minnesota Housing Awards $560K to School-Led Projects Blending Trades Training and Affordable Housin

Minnesota Housing has awarded more than $560,000 to six school-led housing projects that will create or preserve affordable homeownership opportunities across Greater Minnesota.

The grants are part of a newly created program named Housing Challenge Funds for Schools. This initiative combines hands-on learning in construction trades with efforts to address local housing needs.

The selected projects, in Beltrami, Goodhue, Sherburne, Wright, Nicollet, Lac qui Parle, Swift and Chippewa counties, will result in the construction or rehabilitation of single-family homes. All six initiatives are led by school districts partnering with local nonprofits, Habitat for Humanity affiliates, and technical colleges.
“I’ve traveled across the state and heard firsthand from developers who are struggling to find skilled labor,” said Jennifer Ho, commissioner of Minnesota Housing. “These projects do more than create affordable homes, they build the workforce our communities need. We’re excited to continue our housing investment in Greater Minnesota by supporting students and schools.”

Licensed instructors and experienced nonprofit partners will provide oversight, tools, and support throughout the process. Projects will serve households earning at or below 80-115% of area median income (AMI), with all homes located in designated workforce housing communities.

“These are viable career pathways and my goal here is to provide real-world, hands-on experiences where our students can learn a variety of skills to be successful in a career in construction or at least knowing things about homeownership and maintenance,” said Tony Hommes, Construction Trades Instructor at ISD 31.
Awarded districts include:
  • Bemidji Area Schools – $99,750 - In partnership with Headwaters Housing Development Corporation and Northwest Technical College
  • Goodhue Public Schools – $99,030 - Collaborating with Goodhue County Habitat for Humanity
  • ISD 728 Elk River – $99,999 - Partnering with Central Minnesota Habitat for Humanity
  • Saint Peter Public Schools – $99,999 - Continuing a long-standing partnership with Habitat for Humanity of South Central Minnesota
  • Kenyon-Wanamingo Schools – $61,690 - Advancing student-led homebuilding in partnership with Goodhue County Habitat for Humanity
  • Lac qui Parle Valley School District – $99,999 - Launching a home rehabilitation project with support from Southwest Minnesota Housing Partnership
This funding opportunity was made possible by 2024 legislation expanding the eligible uses of the Economic Development and Housing Challenge (EDHC) program to include grants for school districts, charter schools and certain cooperative units. Funding recommendations were approved by Minnesota Housing’s board on May 22, 2025. Grant contracts are expected to be finalized by August, with construction taking place during the 2025–2026 school year.

Future funding for similar school-led projects will be available through the 2025 Single Family Request for Proposals, now open on the Minnesota Housing website.
 

Contact

Jill Mazullo, Communications Director