Affordable Housing gets $37M
St. Paul Pioneer Press
10/27/06
By Gita Sitaramiah
The Minnesota Housing Finance Agency is awarding more than $37 million this fall to help with construction and development of affordable housing projects throughout the state.
The state agency's board of directors on Thursday approved the funding, which will assist with adding and maintaining 2,372 affordable units. Most will be new rental units.
Besides helping to meet the agency's goals, such as reducing homelessness, these projects also present opportunities for builders and contractors faced with the residential construction slowdown, officials said.
"This will help keep the economic engine moving forward," said Tim Marx, the state housing commissioner.
The money will be delivered to developers of these projects in deferred and below-market loans, tax credits, operating and rental assistance based on guidelines to advance state housing goals. The money awarded is less than the $50 million made available last fall, but applications for more funding in some cases may still be accepted this year, officials said.
Many say these projects wouldn't be completed without the assistance because of rising land and material costs.
Minneapolis-based Central Community Housing Trust is receiving about $2 million to help with five different projects, said Alan Arthur, president of the nonprofit. Central Community's housing offer rents 25 to 30 percent below the market.
The housing trust was behind the recently completed $11.7 million transformation of the former Crane & Ordway Co. warehouse in downtown St. Paul into apartments for low-income and formerly homeless tenants.
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