Beacon Interfaith Housing Collaborative has begun a $3.38 million
renovation of an historic Stevens Square apartment building,
transforming the 100-year-old property into a new 19-unit
affordable-housing community with support services for area homeless and
people in need of permanent housing.
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(L to R) Lee Blons, executive director, Beacon Interfaith Housing Collaborative, Tom McGlinch, vice president, investment management, UnitedHealth Group, and Warren Hanson, president and CEO of Minnesota Equity Fund review plans and view construction progress on an historic Stevens Square apartment building, located at 1926 Third Avenue South in Minneapolis. UnitedHealth Group is providing $1.9 million in equity through a partnership with MEF to help transform the 100-year-old property into a new 19-unit affordable-housing community with support services for area homeless and people in need of permanent housing (Photo: Greg Page).
Rehabilitation of the building, to be renamed The Lonoke, located at
1926 Third Avenue South in Minneapolis, includes renovating the 19
existing one-bedroom apartments with upgraded mechanical, electrical and
plumbing systems, new kitchens and baths, common-area upgrades and
improvements, new roofing and other exterior components.
Funding for the project is being provided with the support of many
community partners through tax credit financing, state and local housing
funds and private contributions from individuals, congregations and
foundations.
Minnetonka-based UnitedHealth Group (NYSE: UNH), the largest investor in
the project, provided $1.9 million in equity through Low Income Housing
Tax Credits (LIHTC) through a partnership with the Minnesota Equity Fund
(MEF). The Minnesota Housing Finance Agency (MHFA) approved the use of
the tax credits and is providing a $645,445 loan. Additional funding
includes a $423,523 loan from the City of Minneapolis, a $225,000 loan
and $64,000 grant from Hennepin County, and $75,000 from Plymouth
Congregational Church and Westminster Presbyterian Church. Construction
financing was secured through the Greater Minnesota Housing Fund.
“The Lonoke renovation is the result of a fruitful collaboration with
Westminster and Plymouth churches along with UnitedHealth Group and
government funders who believe in the power of home to transform lives
and communities,” said Lee Blons, Beacon’s executive director. “We’re
grateful that our funders trust Beacon’s capacity to continue to create
well-managed, high-quality affordable housing that not only benefits
individuals but serves as a stabilizing presence in neighborhoods.”
The $1.9 million investment by UnitedHealth Group in collaboration with
MEF is part of more than $250 million the company has provided since
2011 to finance affordable-housing communities with supportive services
throughout the United States. The company has invested $50 million
through MEF to fund affordable-housing communities throughout Minnesota
and the Great Lakes region.
“UnitedHealth Group is honored to be among the many partners investing
in this important community development,” said Tom McGlinch, vice
president, investment management, UnitedHealth Group. “When completed
later this year, The Lonoke will provide the kind of care and support
that is critical in helping to lift people out of homelessness and live
healthier lives.”
“MEF provides a vehicle for socially motivated corporations like
UnitedHealth Group to make economic investments in well-designed,
high-quality affordable-housing developments in growing communities
throughout Minnesota,” said Warren Hanson, president and CEO of MEF.
“Our partnership in this rehabilitation project will help meet the
critical need to provide at-risk individuals with quality, permanent
housing with supportive services.”
Beacon Interfaith Housing Collaborative is the developer, with Frerichs
Construction carrying out building renovations. CommonBond will provide
property management services once the construction phase is complete.
When completed in the fall, the property will be officially renamed The
Lonoke. It will include 10 apartments that will offer supportive
services for people who have experienced long-term homelessness, and
nine general-occupancy apartments for tenants earning 30 percent to 50
percent of area median income. Supportive services for residents will be
provided by Spectrum Community Mental Health and Simpson Housing.
Beacon purchased the Stevens Square apartment building in 2005 along
with its companion building, The Nokoma, which has since been renovated
and all units sold as part of an affordable-housing cooperative.
About Beacon:
Beacon is an interfaith collaborative of
congregations committed to ending homelessness through housing
development, shelter and advocacy. For more information visit www.beaconinterfaith.org
or follow @BelieveInHome.
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. 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 with $2.5 billion under
management 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.
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. For more
information, visit UnitedHealth Group at www.unitedhealthgroup.com
or follow @UnitedHealthGrp on Twitter.
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