Greater MN Housing Fund provided a construction loan for Park Place Apartments, a supportive housing development in Bemidji, Minn. Opened in October 2017, it includes 60 units for formerly homeless adults and serves individuals working hard to overcome addiction issues.
$5 million 10-year loan at 2%; originated in 2009
Capital to ease the foreclosure crisis in greater Minnesota and for other high priority areas of affordable housing. Affordable housing is the building block of a successful statewide economy.
Financial Returns: The loan is on track for success. It repaid its first principal in 2016.
Social Impact: Starting in 2009, Greater Minnesota Housing Fund acquired and rehabbed 230 foreclosed houses. The properties were improved and re-sold as fresh, affordable homes to moderate-income families, helping to stabilize hard-hit communities beyond our metro. The organization has also used McKnight capital to grow; it now manages a $55 million affordable housing loan fund for projects statewide.
|Multifamily units preserved or constructed through revolving loan||438|
|Single family units preserved or constructed through revolving loan||55|
|Multi- and single family loans||$15.5m|
Given affordable rental housing demand exceeds the supply of rent-subsidized properties, Greater Minnesota Housing Fund is financing, rehabilitating, and preserving “naturally occurring” (i.e. non-subsidized) affordable housing. This economically challenging work provides tremendous promise and learning for foundation staff and housing advocates.
As of November 2017
Photo Credits: Greater Minnesota Housing Fund
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