Shared by Peter McLaughlin, Executive Director LISC Twin Cities
Housing Goal Two – Preserve the Homes We Have
In late January, Local Initiative Support Corporation (LISC) used its largest loan package ever in the Twin Cities — $76.6MM — to finance Aeon’s acquisition of 834 units of Naturally Occurring Affordable Housing (NOAH) at Huntington Place Apartments in Brooklyn Park. The City invested $5MM, LISC’s National Equity Fund (NEF) provided $72.5MM, and LISC provided an additional $4.1MM. All 834 apartments at Huntington Place, with over 1,600 residents, will be affordable at or below 60% of the area median income (AMI).
The strong partnership among LISC/NEF, Aeon, the City of Brooklyn Park and the residents of Huntington Place Apartments made this deal possible. In addition to financing, LISC Twin Cities is providing additional funds to support a vision of community development with this project. Real success requires these partnerships and a commitment to strengthening the community.
This is the second acquisition where NEF and Aeon have worked together in the past two months. Village Club in Bloomington closed in late December with lending from both the City of Bloomington and NEF. Homes for 306 families were preserved as affordable at Village Club. In total, these two acquisition by Aeon, financed by LISC, saved 1,140 affordable home and 2,500 residents’ homes will stay affordable for the long term. Significant investment in rehabilitation in both of these projects will improve conditions and stabilize the housing into the future.
NOAH properties are at risk of increased rents that displace residents. When displaced, residents with low incomes have few options for decent housing. The loss of existing affordable homes worsens a growing homelessness problem in Minnesota. According to Wilder Research, homelessness in Minnesota grew by 10% from 2015 to 2018.
“Our partnership with Aeon on this and other projects is essential to address the affordable housing crisis in our region,” said LISC Executive Director Peter McLaughlin. LISC and NEF combined local and national resources to enable Aeon’s preservation of the Huntington Place Apartments, the second largest apartment complex in the state of Minnesota.
“Aeon has been a remarkable leader in housing preservation. They are improving aging rental developments to ensure they are affordable to families and seniors. Without this work, these residents might not be able to find decent housing within their means,” said Matthew Reilein, President and CEO of NEF.
“The City is glad Aeon has a plan for improving Huntington Place. Our community will grow even stronger with increased and thoughtful investment in this property,” said Brooklyn Park Mayor Jeffrey Lunde.
“Decent, affordable housing is scarce. Aeon will pick up the work Dominium started to ensure we improve and save these homes. And, most importantly, keep them affordable,” said Aeon President & CEO Alan Arthur. “The entire community will be part of the continued reinvestment in Huntington Place. Together, we will make it a home that its more than 1,000 residents are proud of. I am grateful for the critical partnership of the City, LISC Twin Cities and the NEF Preservation Fund to make this possible.”
A broader community development approach is also necessary for NOAH preservation to succeed. And with its success, the tens of thousands of residents affected have the ability to thrive.
These projects are a great example of the unique role LISC plays in the Twin Cities. With its NEF affiliate, LISC was able to quickly (in less than two months) provide two large loan packages that allowed Aeon to intervene in the market to preserve these critically needed housing units. National funds through NEF, LISC’s affiliate, brought the bulk of the loans from national sources to supplement locally-available resources to get these deals done.
Not to mention LISC does more than just financing. Supplemental grants from LISC are providing support to Aeon and the community to address many long-standing community issues and increase the chance of real success. In the end, community development and creation of places that work for residents must be at the center of these projects.
About the Partners
Aeon
Aeon believes that home is at the center of everything. With a home, people succeed, families thrive, and our region remains strong. At Aeon, we act boldly to create and preserve quality, affordable homes for those who need them most. We develop and manage affordable homes that serve more than 9,000 people in the Twin Cities. For more information, visit aeon.org or follow us on Twitter and Facebook.
Brooklyn Park
With a population of more than 80,000 people, Brooklyn Park is the sixth-largest city in Minnesota and the fourth largest in the metropolitan area. We are a community that believes our residents are our strongest asset and the key to making Brooklyn Park thrive and prosper.
LISC Twin Cities
With residents and partners, LISC forges resilient and inclusive communities of opportunity–great places to live, work, visit, do business and raise families. Since 1988, Twin Cities LISC has invested over $900 million to build or rehab 17,404 affordable homes and apartments, developed 2.4 million square feet of retail, community and educational space, and served over 7,500 families at Financial Opportunity Centers. To learn more, visit tclisc.org or follow us on Twitter @LISC_TwinCities.
National Equity Fund
National Equity Fund, Inc. (NEF) is a non-profit, Chicago-based affiliate of Local Initiatives Support Corporation (LISC) and leading national Low Income Housing Tax Credit (LIHTC) syndicator. Since 1987, NEF has invested $16.75 billion in nearly 2,800 LIHTC developments that have built and preserved about 187,000 affordable homes for low-income families and individuals. For more information, visit nefinc.org or lisc.org.