Bill Wernz has contributed to an affordable housing nonprofit for decades, but when Canadian wildfires darkened the skies around his St. Paul senior apartment complex last summer, the 80-year-old semi-retired attorney felt called to do something about climate change as well.
Turning his thermostat to 56 degrees at night could only accomplish so much, so Wernz researched a way to marry his two charitable interests. He found the new Minnesota State Housing Tax Credit Program and Contribution Fund, which began late last year after bipartisan support in the Legislature.
The program, administered by Minnesota Housing, the state’s housing finance agency, allows individual taxpayers and businesses to make donations to finance affordable housing projects throughout the state. Contributors who donate between $1,000 and $2 million for either an eligible affordable housing project or a general fund receive an 85% tax credit for their contribution.
Wernz cajoled fellow seniors at Marvella assisted living community in St. Paul to donate $165,000 to the program. Their money was used to install solar panels on two new affordable housing projects, one in St. Louis Park and the other in their Highland Park neighborhood.
“I know this is too big of a problem to make a big dent, but I wanted to do my bit,” Wernz said. “Here’s a carbon offset that’s right there — you can see it.”
The deadline to apply for this year’s tax credit is Dec. 6. Contributions provide funding for loans for eligible housing projects, and the loans are funded entirely by taxpayer contributions, not state appropriations or other funding sources.
It’s rare for a government fund to accept private donations. Minnesota is one of the first states in the country to begin a program like this one, which is modeled off a North Dakota housing tax credit program. Lawmakers have called the legislation revolutionary because it brings private investment to bear on an issue that cannot be solved by government.
“This is one of the most amazing pieces of legislation we’ve seen in a long time,” said Chris Coleman, president and CEO of Twin Cities Habitat for Humanity and former mayor of St. Paul. “It’s kind of mind-boggling because of the simplicity of it. This is a way to do good and help your tax burden as well. That’s quite a two-fer.”