SAINT PAUL, Minn. — In an effort to address two pressing issues at once — the state’s affordable housing shortage and a growing need for skilled labor — Minnesota Housing has awarded $560,000 in grants to six school districts across Greater Minnesota. The newly launched initiative, called the Housing Challenge Funds for Schools, aims to equip high school students with hands-on construction training while producing much-needed single-family homes.

The program funds school-led housing projects that integrate classroom learning with real-world building experience. Participating districts are located in counties such as Beltrami, Goodhue, Sherburne, and Lac qui Parle. Each project is a collaborative effort involving local public school districts, Habitat for Humanity chapters, nonprofit housing organizations, and regional technical colleges.

The homes constructed or renovated under the program are targeted at moderate-income families — those earning between 80% and 115% of the area median income — helping fill a crucial gap in the housing market for working households who often fall between affordability thresholds.

Minnesota Housing Commissioner Jennifer Ho emphasized the dual impact of the initiative.

“I’ve traveled across the state and heard firsthand from developers who are struggling to find skilled labor,” said Ho. “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.”

Each school district that received funding is expected to begin construction in the upcoming academic year, providing students with hands-on trade experience in carpentry, electrical work, HVAC, and more. The program also serves as a pipeline to post-secondary construction training and apprenticeships, helping youth explore careers in the skilled trades while contributing directly to their communities.

Grant contracts are expected to be finalized by August. Minnesota Housing officials say this is just the beginning — additional funding will be made available through the agency’s 2025 Single Family Request for Proposals, further expanding the initiative’s reach in years to come.

State leaders say the program demonstrates a scalable model that connects education with economic development and community revitalization. By engaging youth in the construction process, the initiative gives students tangible career skills while also addressing a statewide need for affordable, workforce-sustaining housing stock.

Originally reported by Tony Wright in FOX 21 Local News.