As we wrapped up 2025, Minneapolis and St. Paul both passed their annual budgets for the upcoming year. Since then, they’ve also welcomed new faces into their respective city councils and mayors’ offices. Whether you’re a housing advocate, taxpayer, or community member, the decisions made at the local level can have widespread impacts for all of us. As an organization committed to furthering and preserving affordable homeownership, we rely on local funds and city partnerships to get our work done. We were glad to see continued investments in affordable housing in both cities this year and are grateful to have such reliable partners in advancing our mission.
Agreements for city budgets are never reached easily, as leaders face the challenge of funding critical investments while being mindful of the impact of increasing taxes for residents. Finding consensus can be especially tricky for Minneapolis. Negotiations took place for weeks leading up to the budget agreement, but the council and Mayor Frey were ultimately able to land on an agreement. The budget comes out at just under $2 billion, a 2.2% increase from last year’s adopted budget which will require an 8% increase to the tax levy.
The budget includes $3.5 million for the Minneapolis Homes program, which provides financing and property for developers like us to create affordable homeownership opportunities throughout the city. Throughout the budget process, we engaged council members and the mayor’s office to advocate for this program; it’s crucial for the work we do across Minneapolis and will continue to be an essential resource for keeping up with rising costs of development. Amidst rising tariffs, construction costs, and increasing cost of living for residents, public investments are badly needed to meet the housing needs of our communities.
The budget also includes sustained funding for the Homeownership Counseling and Outreach Program, which we also elevated to council members in our engagement efforts, and which helps organizations provide services for homeowners facing foreclosure. Foreclosure prevention is an important part of maintaining a healthy housing ecosystem. As the rate of people facing foreclosure is increasing across Minneapolis and our state, these kinds of programs can improve outcomes for households struggling with their mortgages.
Twin Cities Habitat will build up to 150 affordable homes at The Heights.
In St. Paul, leaders agreed on an $883 million budget for 2026, which included a 5.3% increase to the property tax levy. Within the budget, they allocated $13.9 million toward housing and economic development, which includes $4.4 million toward housing affordability efforts.
Change never happens overnight, and many of these investments are part of long-term goals and initiatives for the city’s housing environment. When we get to see the real impact of these investments, however, it’s especially rewarding. Last month, for example, the very first Habitat homebuyers closed on their homes at The Heights, marking a major milestone for this transformative project! The city of St. Paul has been an essential partner in helping actualize this development on the Greater East Side. We look forward to continuing to work together on this project over the next few years.
St. Paul Mayor Kaohly Her, Councilmember Nelsie Yang, and Greater Eastside Community Council Executive Director Lisa Theis joined Twin Cities Habitat for a tour of our development at The Heights.
After bringing in the new year, we also look forward to welcoming new faces in local leadership roles across the Twin Cities. Last week, Minneapolis swore in four new council members - Pearll Warren (Ward 5), Elizabeth Shaffer (Ward 7), Soren Stevenson (Ward 8) and Jamison Whiting (Ward 11). St. Paul also swore in its new Mayor, Kaohly Her, earlier this month, and recently added Molly Coleman (Ward 4) to the council back in August after a special election.
While all of these new leaders have their own visions for what they’d like to accomplish in office, many of them have expressed a desire to invest in affordable housing and homeownership opportunities across the Twin Cities. We’re so excited to get to know each of them throughout the next few years and see how we can work together to ensure everyone has a chance to unlock affordable homeownership.
We’ll work to stay connected with local elected officials year-round—but there’s no one they like hearing from more than their actual constituents. As advocates and community members, your voice matters! You can sign up for our action alerts to stay updated when there’s ways to plug in.
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