This story was originally published in Affordable Housing Finance.
Minnesota Housing is providing funding to create and preserve more than 1,700 affordable homes throughout the state, including rental units and single-family houses.
The awards will go to 55 developments that support more than 3,600 jobs and will leverage additional private and local resources for more than $364 million in total development costs. Each of the projects was selected through a single-common application process with funding from Minnesota Housing, Greater Minnesota Housing Fund, and the Metropolitan Council.
Low-income housing tax credits and funds from other programs were awarded.
“We know that the smartest investment we can make in our state’s future is securing a foundation of strong communities and stable homes for all Minnesotans,” said Mary Tingerthal, Minnesota Housing commissioner, in a statement. “Since the beginning of the (Gov. Mark) Dayton administration, we have touched every corner of our state by investing $1.7 billion in more than 35,000 units of affordable housing. I’m proud of our work and the difference it has made for children, families, businesses, and communities across Minnesota.”
One of the projects to be funded this year is the Jeremiah Program site in Rochester, which will provide 40 young families with a place to call home and give them successful strategies to transition from poverty to prosperity, two generations at a time. The Nov. 1 awards announcement took place at the St. Paul location of the Jeremiah Program, where the program has demonstrated its success for more than 10 years.
CommonBond Communities received awards for five projects that will provide housing for low-income families, people who have been homeless, and people with disabilities—Dublin Heights, a 45-unit development in Mankato; Le Sueur Meadows II, a 39-unit development in Le Sueur; Galway Place Townhomes & Community Plaza, the acquisition and rehabilitation of 36 rental townhomes in Coon Rapids and 40 rental townhomes in St. Paul; The Willows, a 60-unit development in Shakopee; and Trail Pointe Ridge, a 58-unit development in Eden Prairie.
It is the first time that the nonprofit organization has had five projects funded in one round.
“We deeply appreciate this funding support and the vote of confidence in our work from the Minnesota Housing Finance Agency,” said Cecile Bedor, executive vice president of real estate at CommonBond Communities. “We appreciate the partnership with Minnesota Housing and other funders, and are thrilled these projects will provide over 300 new units of affordable housing for Minnesota families. So many families and communities will benefit from these homes.”
The projects selected bolster Minnesota’s workforce and communities and meet the state’s growing affordable housing needs by:
Providing more housing for workers: Nearly three-quarters of the projects will fund the new construction of rental homes that will provide critical housing for workers and maintain economic competitiveness for employers. New housing will support businesses large and small in greater Minnesota communities like Baxter, Buffalo, Mankato, Rochester, Staples, and St. Michael as well as the Twin Cities Metro Area. In Scott County alone, where four new projects will be funded, the estimated population growth is more than 27,000 new households by the year 2040. Far more housing is required to meet the needs of employees at business like Amazon, Shutterfly, and others across the region.
Investing in what works: Investment will be in projects with models that have demonstrated success. Conifer Estates opened in 2012 in Bemidji, giving residents not only stable homes, but also access to life-skills training, money management, employment referrals, counseling, and crisis intervention. New funding will expand this successful model and allow the project sponsors to break ground on Conifer Estates II, adding 32 townhomes with services for people experiencing behavioral health issues.
Creating more affordable housing in suburban areas: Many suburban communities understand that a mix of housing options is essential to a thriving community for all residents. This year, nine developments will create more than 500 new housing opportunities for families in suburban high-opportunity areas, including new construction projects in areas like Bloomington, Eden Prairie, Inver Grove Heights, Vadnais Heights, Shakopee, and Waconia.
Ending homelessness: Minnesota Housing is supporting the State Plan to Prevent and End Homelessness by investing in supportive housing, including Lydia Apartments in Minneapolis, which has served residents for more than 15 years and where units will be added so that more people experiencing homelessness can find a home and be connected with services. This year, 22 of the new rental housing developments throughout the state will offer some units that provide supportive services.
Supporting homeownership: Funding awarded will provide Habitat for Humanity chapters across the state with resources to support an estimated 87 homes and help additional housing partners to acquire, rehabilitate, and construct high-quality homes. Additional projects include those that will help tribal nations to increase homeownership among their members, help owners of dilapidated manufactured homes to replace them with high quality used homes, help seniors with critical home repairs that allow them to age in place, and help young families put down roots in rural communities.
#BETTER MN: Under the Dayton administration, Minnesota Housing has invested $1.7 billion to create or preserve more than 35,000 places to call home in every corner of the state using resources like those announced today.
“Too many families across Minnesota struggle to afford quality housing, forcing them to cut back on other essential needs like food, medicine, and education,” Dayton said. “This critical investment in affordable housing across our state will strengthen our local communities and Minnesota families.”
In addition to these annually awarded competitive resources, Minnesota Housing also has an impressive record supporting homeownership. Since 2011, the agency has financed $4 billion in mortgages, helping more than 26,000 families achieve the dream of homeownership for the first time.
The funding awards announced today also further the goals and recommendations released in the recent Housing Task Force report that called for 300,000 new homes by 2030 across all types, prices, and locations. See the complete recommendations at mnhousingtaskforce.com.
View a catalog of funded developments, maps, and a detailed breakdown of all funding awards at www.mnhousing.gov.
This story was originally published in Affordable Housing Finance.
