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AFFORDABLE HOUSING=20 FINANCE

FINISHING TOUCHES

Grain Site Goes Green

BY JERRY ASCIERT0

AFFORDABLE HOUSING FINANCE =95 SEPTEMBER 2007

MINNEAPOLIS - The 20-story grain = elevator=20 towering above a southeast Minneapolis neighborhood isn=92t = going=20 anywhere. The neighbors wouldn=92t allow it. Built in 1936, = the Bunge=20 grain elevators are a symbol of Minneapolis=92 agricultural = past, and=20 residents of the Como neighborhood were insistent on = preserving the=20 towering structures.

So local nonprofit developer Project for Pride in Living = (PPL),=20 which is leading a three-acre mixed-income redevelopment = that would=20 create a host of affordable rental and homeownership units = on the=20 site, had to tread carefully.

=93We included the neighborhood in the design process,=94 = said Chris=20 Wilson, PPL=92s director of real estate development. = =93We=92re saving a=20 piece of the grain elevators, so they=92ve still got this = neighborhood=20 icon.=94 Neighborhood groups also wanted the Van Cleve = redevelopment=20 to be composed largely of homeownership units instead of the = student=20 rentals that predominate in the area.

The tower provides a ready structure to fulfill that = request.=20 Local developer Jeffrey Laux plans to build 139 units of = market-rate=20 condos in it. Those units will help to offset the cost of = the=20 affordable units by generating increased property taxes. The = projected future gains in tax revenue can be used to finance = the=20 development in a process known as tax increment financing = (TIF).

=93It=92s generating quite a bit of TIF, and the city = will allow us=20 to shift 15 percent of that over, so we=92ll basically = subsidize our=20 land cost with the TIF generated by [the market-rate = condos],=94 said=20 Wilson. The TIF will provide about $400,000 to the project, = he=20 said.

PPL began new construction in August on the first phase = of Van=20 Cleve, a 35-unit building with eight one-bedroom units for = the=20 formerly homeless, and 18 two-bedroom and nine three-bedroom = units=20 aimed at those earning up to 50 percent of the area median = income=20 (AMI). It=92s expected to be finished in August 2008. The = second=20 building will include 50 units, 12 of which also will be = permanent=20 supportive housing for the formerly homeless, with the rest = targeted=20 to those earning up to 50 percent of the AMI. At press time, = PPL was=20 applying for tax credits for the second building.

Supportive services such as job training and case = management will=20 be provided through a partnership between PPL and local = nonprofit=20 Cabrini Partnership.

PPL also is developing seven townhouses targeted at = households=20 earning up to 80 percent of the AMI, and Twin Cities Habitat = for=20 Humanity is building five additional townhouses for those = earning up=20 to 50 percent of the AMI.

Development costs on the first phase total about $7.3 = million,=20 with $4.4 million in equity coming from the sale of 9 = percent=20 low-income housing tax credits, syndicated by National = Equity Fund,=20 Inc. PPL also received $500,000 from Minnesota Housing; = $412,000=20 from the city=92s Affordable Housing Trust Fund; $270,000 = from the=20 Hennepin County Affordable Housing Incentive Fund; and a = $250,000=20 loan from the Federal Home Loan Bank.

The project was awarded a $105,000 grant from Minnesota = Green=20 Communities. PPL and architect UrbanWorks Architecture, LLC, = are=20 working with energy modelers to make the building 35 percent = more=20 efficient than the state=92s building code requires.

=93It was a great guideline to follow for affordable = housing,=20 because their emphasis is on indoor air quality, energy = efficiency,=20 and smart site development,=94 said Dave Haaland, a = principal at=20 UrbanWorks.

A centralized water-heating system, and passive solar = heating and=20 passive cooling schemes will be used on the first two = buildings.=20 Low-energy fans pump fresh air into the units, and enlarged = windows=20 invite more sunlight in. =93We insulated the roof more than = code, and=20 more than was typical,=94 said Haaland. =93We also provided = some sun=20 shades and oriented the building in a way that maximizes the = sun.=94

Affordable=20 Housing Finance magazine home | HousingFinance.com=20 home

Unauthorized duplication of articles in = Affordable=20 Housing Finance, Apartment Finance Today, or = HousingFinance.com=20 is strictly prohibited. All rights reserved and all copyrights = held by=20 Hanley Wood, LLC. Reproduction of this publication in whole or in = part in=20 any form, on paper or electronically, without written permission = from the=20 publisher is prohibited by law.

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=20 =09 =20

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=20 SEPTEMBER 2007 COVER STORY
Local residents and officials demand good design=97and affordable housing developers and architects are paying close attention, resulting in a collaborative process that often leads to better designs. Learn how the industry is rethinking design, including the latest in green building and townhomes.=20

Watch Affordable Housing Design = Slideshow

SEPTEMBER 2007 — FEATURED = ARTICLES

=20 =20 =20

Special Focus: Rethinking Affordable Housing = Design

=09

ALSO IN THIS = ISSUE...

Grapevine

Letter from the Editor

The Buzz

Housing Policy

Finance

Market Opportunities

Asset & Property Management

Regional Report: South Central

Coming Events

Wax Affordable

Finishing Touches

Grain Site Goes Green

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=09

=20 =20

PROFESSIONAL DEVELOPMENT

AHF Live! The 2007 Tax Credit Developers' Summit

October 24-26, 2007
Hyatt Regency Chicago on the Riverwalk
Visit www.ahflive.com = for more details.

ONLINE RESOURCES

AHF's Housing Finance = blog

Search past issues in our article archive.

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Read the latest AHFU e-newsletter here.

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Useful links= to national and regional websites for affordable housing = professionals.

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=09

CHATTER BOX =

=93A safe, decent affordable home is = like a vaccine. It literally prevents disease. A safe home can prevent = mental health and developmental problems, a decent home may prevent = asthma or lead poisoning, and an affordable home can prevent stunted = growth and unnecessary hospitalizations.=94

—Dr. Megan Sandel, a pediatrician at = Boston Medical Center, supporting the National Affordable Housing Trust = Fund during testimony before the House Financial Services = Committee

=20 =09

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Unauthorized duplication of articles in = Affordable Housing Finance, Apartment Finance Today, or = HousingFinance.com=20 is strictly prohibited. All rights reserved and all copyrights = held by Hanley Wood Publishing, Inc. Reproduction of this=20 publication in whole or in part in any form, on paper or = electronically, without written permission from=20 the publisher is prohibited by law.