Today, the Minneapolis City Council approved $15.7 million in direct investment and $1.1 million in 10-year federal tax credits to create or preserve 797 units of affordable multifamily rental housing in 10 projects located throughout the city. 291 units will be 30% AMI or less with 152 of those for homelessness. These investments are the result of awards from the City’s Affordable Housing Trust Fund and Federal Low Income Housing Tax Credit programs for 2021. Together, these investments will leverage over $260 million in additional private and public resources.
“The investments we are celebrating today are the results of our collective efforts to prioritize funding a dynamic portfolio of affordable housing, with a specific focus on deeply affordable housing for our most vulnerable neighbors,” said Mayor Jacob Frey. “Each project we are funding today contributes to the exciting momentum underway to increase access to safe and affordable housing for all neighbors in Minneapolis.”
The Affordable Housing Trust Fund creates new and preserves existing affordable housing for low income renters (with incomes at or below 50% AMI, or $52,450 per year for a family of four). Almost 75% of such renters experience cost burden (pay more than 30% of their income for housing) because of the affordable housing shortage in the City. Black, Indigenous, People of Color are disproportionately impacted by housing instability.
“If we have learned anything during this pandemic it’s the importance of access to affordable housing in good times but especially in bad times,” said Council Member Lisa Goodman, Chair, Business, Inspections, Housing, and Zoning Committee. “These partners will bring online and the city will help finance more than 797 homes for those at various income levels, so that our precariously housed neighbors have a place to call home in our city.”
The Affordable Housing Trust Fund (AHTF) program and the Federal Low Income Housing Tax Credit (HTC) program provide up front equity and gap financing to assist with the production and preservation of decent, safe, and affordable multifamily rental housing.
The City Council approved the following project today for a preliminary reservation of HTCs totaling $1.1 million:
- In Ward 8, $1,124,000 for the Calvary Apartments project, which is a historic preservation and adaptive reuse project creating 41 units of deeply affordable rental housing including 10 units for persons experiencing long-term homelessness.
These tax credits will generate over $10.4 million in up front equity for this development.
The City Council also approved $15,730,000 from the AHTF for the following projects today:
- In Ward 8, $1,230,000 for the Calvary Apartments project which is a historic preservation and adaptive reuse project creating 41 new deeply affordable housing units for homelessness and families.
- In Ward 6, $1,650,000 for the Kyle Garden Square project which is an adaptive reuse project creating 55 new units of permanent supportive housing with deep affordability for high priority homelessness.
- In Ward 10, $2,130,000 for the 550 Lake Street (Lake Street Housing Phase III) project which is 80 units of mixed income housing with 6 high priority homeless households, including units for large families.
- In Ward 5, $1,520,000 for the Emerson Village project which is 40 large family housing units with deep affordability and 20 units set aside for high priority homelessness.
- In Ward 5, $1,800,000 for the Currie Commons project which is 187 units of mixed income housing with 5 high priority homeless units, 18 units of supportive housing for families, and 13 units serving people with disabilities.
- In Ward 5, $890,000 for the Plymouth Avenue Apartments project which is a Senior Housing Policy eligible project and consists of a total of 63 units with 7 high priority homeless units and 14 supportive housing units.
- In Ward 8, $3,270,000 for the 3030 Nicollet project which is a mixed-use building with 110 affordable family housing units. This project is located on the former Wells Fargo site and is part of the recovery effort on Lake Street.
- In Ward 1, $920,000 for the Northrup King Residential project which is a historic preservation and adaptive reuse project with 84 units mixed income housing with 26 3BR units.
- In Ward 12, $1,000,000 for the Snelling Yards Workforce Housing project which is a mixed income building with a total of 89 units, including family units of which 13 units are reserved for homeless veterans. This project is the 2nd phase of a City priority development site and consists of mixed income workforce housing.
- In Ward 2, $1,320,000 for the St. Stephen’s Housing project which is a 100% affordable low barrier housing project with a total of 48 units for persons experiencing long term homelessness with mental illness and co-occurring addictions. This project also has an associated shelter component, which is being financed separately.