Investments will create or preserve 686 units of affordable multifamily rental housing in 10 projects leveraging $150 million in additional private and public resources
WASHINGTON, D.C. – (RealEstateRama) — The Minneapolis City Council approved $7.9 million in direct investment and $1.2 million in 10-year federal tax credits to create or preserve 686 units of affordable multifamily rental housing in 10 projects located throughout the city.
These investments are the result of awards from the City’s Affordable Housing Trust Fund and Federal Low Income Housing Tax Credit programs for 2016. Together, these investments will leverage over $150 million in additional private and public resources.
Renters represent three out of four households in Minneapolis that are spending more than 30 percent of their income on housing.
The Affordable Housing Trust Fund (AHTF) program and the Federal Low Income Housing Tax Credit (LIHTC) program provide up front equity and gap financing to assist with the production and preservation of decent, safe and affordable multifamily rental housing. New this year is the Family Housing Initiative, dedicated funding to assist in financing the production of new affordable housing opportunities for extremely low income families experiencing homelessness or at risk of becoming homeless.
The City Council approved the following projects today for a preliminary reservation of LIHTC totaling $1,223,745:
- In Ward 7, $98,614 for the YouthLink Supportive Housing project, 46 units of supportive housing for homeless youth ages 18-23.
- In Ward 5, $674,359 for the Great River Landing project, 72 units of supportive housing for men who were formerly incarcerated or at risk of long term homelessness.
- In Ward 2, $450,772 for the Aeon Prospect Park project, 70 units of mixed income housing for families with some units for homeless families.
These tax credits will generate over $12 million in up front equity for these developments.
The City Council also approved a total of $7,084,679 from the AHTF and $800,000 from the Family Housing Initiative for the following projects today:
- In Ward 2, $925,000 for the Minnehaha Commons project, 41 units for low income seniors and seniors at risk of homelessness.
- In Ward 12, $800,000 for the Minnehaha Townhomes project, 16 units of large (3BR or more) family housing for extremely low income families in shelters.
- In Ward 5, $900,000 for the Great River Landing project (described above).
- In Ward 2, $1,250,000 for the Bunge Apartments project, 150 units for workforce and artist living with some units serving homeless families and individuals.
- In Ward 6, $209,679 for the Dundry-Hope Block Stabilization Phase II project, 30 units for low income large families.
- In Ward 8, $1,250,000 for the Sabathani Senior Housing project, 50 units for low income seniors.
- In Ward 5, $2,050,000 for the Artspace Leef North Lofts project, 110 units of mixed income housing for individuals and families.
- In Ward 10, $500,000 for the Lake Street Housing project, 100 units for low income individuals and families.