Vergas, White Earth, Dilworth projects to receive funding

The Minnesota Housing board of directors selected and advanced proposed housing developments totaling nearly $191 million in investments that will support the creation and preservation of 2,276 single-family homes, apartments, and manufactured home community lots. In total, these projects represent more than $480 million of housing development and will support 4,400 jobs.

The total funding announcement is a compilation of project selections the Agency made in all types of housing it funds: multifamily rental housing, single-family homeownership opportunities, and manufactured home community infrastructure.

Area projects include: Josh Hanson (JRMH Holdings, LLC), Lawrence Lake Acres, Vergas, New Construction of 4 units; White Earth Reservation Housing Authority, 2024 White Earth Reservation Housing Authority Owner-Occupied Rehabilitation Program, Multi-County, Owner-Occupied Rehabilitation of 35 units and 3rd Avenue Flats, Dilworth, New Construction of 44 units.

Rental Housing Investments Highlights

The multifamily rental selections support a total of 959 units. Nearly 55 percent of the units (523 units) will be new construction and 45 percent (436 units) are preservation of existing affordable properties. Thirteen of the 21 multifamily developments are in Greater Minnesota, representing 62 percent of the overall recommended projects, with a total of 596 units. The multifamily rental selections will leverage additional federal resources totaling more than $175 million of equity generated by the federal low-income housing tax credit.

It’s difficult for renters to find stable and affordable homes, and for some property owners it can be equally difficult to maintain and manage affordable rental properties. Preservation resources help rental properties maintain and improve existing affordable housing for years to come. Investing in these homes will address critical maintenance needs. Preservation resources support improvements at federal Section 8 project-based rental assistance developments as well as properties at risk of loss of the affordable apartments due to market conversion, critical physical needs, and ownership capacity.

Of the multifamily selections, 230 units have federal Section 8 project-based rental assistance and 303 units meet other preservation needs. These preservation resources will bring stability and improvements to both the physical parts of the buildings as well as improve the properties’ finances.

Many of the rental properties are for specific populations, such as 186 units designated for seniors, nearly 90 units exclusively for people with disabilities, and 280 units for people who have experienced homelessness or need supportive services. One supportive housing development, Bickham Court Apartments—formerly known as Perspectives Apartments—in St. Louis Park will see stability and improvements thanks to the fast work of Trellis, preserving 56 affordable apartments that could have been lost when the previous owner went bankrupt.

“When I heard the Perspectives Apartments in St. Louis Park were in jeopardy, I immediately thought of the moms and kiddos at risk of losing their homes,” said Lieutenant Governor Peggy Flanagan. “I’m so grateful that Trellis stepped forward to buy and preserve these buildings and that Minnesota Housing is able to support them in improving the apartments. These services are crucial to supporting Minnesota families in finding housing stability.”

Homeownership Investments

In the homeownership area, the board approved 46 projects supporting a total of 587 homes. Of these, 172 homes will be new construction. The Agency also provides funding for owner-occupied rehabilitation, acquisition, rehabilitation and resale, and downpayment assistance to make homeownership more affordable across the state.

One of the successful applicants for single-family funding is Dreamliner Estates LLC, a developer that plans to build 34 new homes in St. Cloud. This is the first time Dreamliner is receiving funding from Minnesota Housing. They will access $3.4 million in funding to support 16 of their planned homes.

Manufactured Home Community Improvements

In addition to the rental and homeownership projects described above, Minnesota Housing selected nine manufactured home community investments this year for a total of $2.7 million. 

Regional projects include: Isanti Estates MHP – Alexandria (Douglas County) 120 lots; Emerald Pines Cooperative – Alexandria 44 lots, and Woodlawn Estates – Garfield (Douglas County) 40 lots.

These funds can be used for infrastructure projects such as electrical work, water and sewer upgrades, storm shelter construction or repairs, and road and sidewalk improvements.

Bonnevista Terrace, a 202-unit, privately owned manufactured home community in Shakopee, is one of the selections. With a grant from Minnesota Housing, the community will be able to replace their entire electrical system and update the technology to make the community adaptable for future electrical needs.

Statewide Impact

Between multifamily, single-family, and manufactured home communities, Minnesota Housing’s selections span the state.

“Every community faces housing challenges, and we know they look different from town to town,” said Minnesota Housing Commissioner Jennifer Leimaile Ho. “I’m pleased we’re able to support a significant number of projects across Greater Minnesota. Thanks to the legislature, we have a range of programs to help us meet local needs, whether they need more supportive or senior housing, more single-family homes people can afford, or infrastructure upgrades in manufactured home communities.”

For more information about the project selections, visit Minnesota Housing at www.mnhousing.gov.