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. Exited 2022 (success).
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.
Photo Credits: Greater Minnesota Housing Fund
Disclaimer of Endorsement: The McKnight Foundation does not endorse or recommend any commercial products, processes, or service providers.
Last updated 11/2017