UnitedHealth Group (NYSE: UNH) and Minnesota Equity Fund (MEF) today
joined community leaders, development partners and new residents to
celebrate the grand opening of The Seasons Townhomes in Ramsey.
![Community leaders, development partners and new residents celebrate the grand opening of The Seasons ...](http://mms.businesswire.com/media/20131114006490/en/392352/4/Photo_1_hr.jpg)
Community leaders, development partners and new residents celebrate the grand opening of The Seasons Townhomes in Ramsey, a new, 50-unit affordable-housing community connecting residents to the Northstar Commuter Rail. L to R: State Rep. Jim Abeler; Mike Podawiltz, CEO of Podawiltz Development Corp.; Ramsey Mayor Pro Tem Randy Backous; State Housing Commissioner Mary Tingerthal; Craig Renshaw, Director of Investment for UnitedHealth Group; and Warren Hanson, CEO, Minnesota Equity Fund (Photo: Kelly Dahl).
The new, 50-unit affordable-housing community connects residents to the
Northstar Commuter Rail and is one of several developments recently
completed or under construction as part of a $50 million investment by
UnitedHealth Group and MEF.
UnitedHealth Group is partnering with MEF to provide $50 million in
equity to finance the construction of new affordable-housing communities
throughout the Great Lakes region, creating a total of 118 new
affordable-housing units in the region. The first four developments
funded through the UnitedHealth Group-MEF partnership include:
-
The Seasons Townhomes, Ramsey: 50-unit multifamily community
integrated into the Northstar Commuter Rail Corridor. Developed by
Podawiltz Development Corporation, the community provides
affordable-housing opportunities for low-income and formerly homeless
individuals and families in the area. Construction began in March and
was completed in November.
-
Prairiewood Townhomes, Faribault, Minn.: New 30-unit
multifamily community development that will provide affordable-housing
opportunities for low-income individuals and families. Construction
began in May and will be completed in March 2014. The developer is
Three Rivers Community Action Inc.
-
Prairie Rose Apartments, Red Lake Falls, Minn.: An existing
16-unit multifamily community development that underwent substantial
rehabilitation and provides affordable-housing opportunities for
low-income individuals and families. Construction began in May and was
completed in September. The developer was D.W. Jones Inc.
-
Gilmore Estates, Jacksonville, Ill.: 22 one- and two-bedroom
cottage-style apartments for seniors. Morgan County Civic Services and
Windsor Development Group were the co-developers. Construction began
in February and was completed in September.
MEF and UnitedHealth Group will announce additional affordable-housing
developments in the coming months.
MEF was established by Greater Minnesota Housing Fund (GMHF), based in
St. Paul, with initial capitalization of $50 million provided through
UnitedHealth Group. MEF’s mission is to enable socially motivated
corporations and financial institutions to make sound economic
investments in high-quality affordable-housing developments, which
qualify for federal housing tax credits.
The fund is designed to provide a full range of services including
matching investor interest in specific communities or unique projects,
underwriting, due diligence and long-term asset management. GMHF, the
equity fund’s parent organization, provides project technical assistance
and complementary no-interest gap financing and construction financing.
MEF’s first fund is an operating partnership between GMHF, which works
directly with developers and Minnesota investors, and Lansing,
Mich.-based Great Lakes Capital Fund, which provides underwriting and
long-term asset management for MEF.
The $50 million commitment by UnitedHealth Group to MEF is part of the
company’s Affordable Housing Investment Program, which has provided more
than $100 million in financing for community developments throughout the
United States. The program is one of several community initiatives
undertaken by UnitedHealth Group that is providing millions of dollars
each year to help fund local infrastructure projects to improve the
quality of life for residents in communities where the company conducts
business.
“We are grateful for the opportunity to be the lead investor in the
Minnesota Equity Fund that will bring new affordable-housing
opportunities to communities throughout the Great Lakes region,” said
Tom McGlinch, vice president, investment management, UnitedHealth Group,
which employs more than 13,000 people in Minnesota. “This investment
will help create a foundation of support for families with the greatest
needs and spark economic investment and job growth in the areas where
these housing developments are being built.”
GMHF, with support from the McKnight and Blandin foundations, has
financed more than 11,000 units of affordable housing throughout
Minnesota since it started in 1996. MEF will finance projects in the
Great Lakes region, including the Twin Cities metro area and throughout
Minnesota.
“MEF provides a vehicle for socially motivated corporations and
financial institutions to make economic investments in well-designed,
high-quality affordable-housing developments in growing communities
throughout Minnesota,” said Warren Hanson, president and CEO of GMHF.
“We applaud UnitedHealth Group for its leadership and investment in
these first projects, which will help meet the needs of working families
and their children and create a stronger Minnesota.”
About The Minnesota Equity Fund
MEF is a subsidiary of the
Greater Minnesota Housing Fund (GMHF), a non-profit Community
Development Financial Institution, established by The McKnight
Foundation and Blandin Foundation. GMHF provides loans, equity
investments, grants and technical assistance to create affordable
housing in Minn. In its 16-year history, it has raised over $150 million
and financed over 11,000 affordable homes. MEF’s initial fund is a
strategic partnership between GMHF and Great Lakes Capital Fund (GLCF),
a nationally recognized syndicator of low-income housing tax credits
(LIHTC) with $2.5 billion under management and 20 years of experience
and expertise in affordable housing.
About UnitedHealth Group
UnitedHealth Group (NYSE: UNH) is a
diversified health and well-being company dedicated to helping people
live healthier lives and making health care work better. With
headquarters in Minnetonka, Minn., UnitedHealth Group offers a broad
spectrum of products and services through two distinct platforms:
UnitedHealthcare, which provides health care coverage and benefits
services; and Optum, which provides information and technology-enabled
health services. Through its businesses, UnitedHealth Group serves more
than 80 million people worldwide. For more information, visit
UnitedHealth Group at www.unitedhealthgroup.com.
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