Growing Affordable Inclusive Neighborhoods (GAIN) Program

The Growing Affordable Inclusive Neighborhoods (GAIN) program is administered by the Olmsted County Housing and Redevelopment Authority, a local public agency based in Rochester, Minnesota. The authority’s mission is to provide residents with opportunities to obtain quality affordable housing, and this Notice of Funding Opportunity represents a targeted effort to expand the supply of modest, owner-occupied homes. The program is structured to support development teams in delivering housing that meets local affordability needs while also strengthening the county’s housing stock and tax base. It is designed as a revolving funding mechanism, meaning that repaid funds are reused to support future housing projects. The primary purpose of the GAIN program is to incentivize the construction and development of smaller, lower-priced homes intended for owner occupancy. Eligible housing types include single-family homes, townhomes, and condominiums. All homes developed under this program must be sold for $350,000 or less, making them accessible to first-time homebuyers and individuals or households seeking to downsize. The program emphasizes increasing the supply of entry-level housing and improving affordability for households earning between 80 percent and 115 percent of the area median income. In addition, the program encourages redevelopment of underutilized or blighted properties and supports balanced and sustainable community growth. Funding under this opportunity totals $3,000,000 and may be awarded to a single project or distributed among multiple projects depending on proposal quality and alignment with program priorities. Funds may be used for a variety of development-related purposes, including below-market construction loans, land acquisition assistance, and other financial support determined on a case-by-case basis. However, assistance is limited to costs directly associated with home construction and development. The program also allows for grants in certain phases such as predevelopment activities, while maintaining a broader structure of revolving loan financing to sustain long-term program viability. Eligible applicants include development teams from the public, private, and nonprofit sectors. Proposals must demonstrate the capacity to deliver housing efficiently and in alignment with program priorities. These priorities include maximizing the number of homes produced, minimizing development timelines, utilizing infill sites, ensuring owner occupancy for a minimum of five years, and maintaining affordability thresholds. Applications must include detailed project descriptions, financial pro formas, development schedules, and explanations of how the project aligns with program goals. Applicants must also specify the type and amount of assistance requested and justify it based on project financials. The application process requires submission of a complete proposal package organized into specific sections, including project overview, financial information, alignment with priorities, production timeline, assistance request, and construction summary. Selected applicants will proceed to a negotiation phase, culminating in a formal Development Agreement with the Housing and Redevelopment Authority. This agreement will define responsibilities, timelines, funding structures, and compliance requirements, including building standards and buyer eligibility criteria. The authority will hold a first-priority mortgage on funded properties, and repayment is required upon sale of the completed homes to qualified buyers. Applications for this funding opportunity are open through June 15, 2026. Submissions must be delivered to the Olmsted County Housing Department either by mail or email, with attention to the designated housing project manager. Questions regarding the program may be directed to Mark Engel via phone or email. Following submission, proposals will be reviewed competitively, and selected projects may undergo further review, including presentations and board approval, before final agreements are executed. The timeline from selection to agreement execution may vary depending on project complexity and negotiation outcomes.

Emphasize delivering the maximum number of homes quickly while maintaining affordability under 350000 and targeting households at 80 percent to 115 percent AMI; prioritize infill development and clearly justify financial need