The 2023 Minnesota Legislature created a new program,
Local Affordable Housing Aid (LAHA), which distributes a portion of the proceeds from a 0.25% metro area sales tax to cities. LAHA funds may be used by cities for a limited number of purposes including the development or rehabilitation of affordable housing.
The City of Crystal received its first distribution of LAHA funds in 2024 and the city expects to have received a total of $475,000 by the end of 2025. In 2026 and subsequent years, the city expects to receive approximately $350,000 annually.
In 2026, the city’s Economic Development Authority intends to issue a request for proposals from developers and non-profit organizations for the use of LAHA funds.
Required Local Affordable Housing Aid Certification: As a condition of receiving housing aid funds from the State of Minnesota, the City of Crystal must commit to using housing aid funds to supplement, not supplant, existing locally funded housing expenditures, so that the City of Crystal is using the funds to create new or to expand existing housing programs. Between 2023 and 2024, and excluding grants funded with tax increments, the City of Crystal reduced its expenditure on home improvement grants for income-qualified households by $2,734.51. The reason for these reduced expenditures is that a smaller amount of grant funds were requested in 2024 than in 2023. This is normal because the demand for the program fluctuates from year to year.