GMHF has
Supported Employer Assisted Housing Efforts in Over 30 Minnesota Communities
Riverplace Townhomes - Aitkin, Minn.
Multifamily Rental Housing
Employer Role: Land and Cash Contribution;
Owner and Developer of Housing for Employees
Kenneth Kellar is a local business owner employing over 70 people in a community experiencing growth and facing a shortage of affordable housing. Through his foundation, Kellar contributed land and over $180,000 to build new affordable rental housing for the community and partnered with the Central Minnesota Housing Partnership, an experienced nonprofit housing developer, to coordinate the development of the project. In 1999, the Kellar Foundation completed an 18-unit townhome development in the City of Aitkin. The city provided the infrastructure and GMHF provided a $270,000, 0-percent interest deferred loan to the development.
Grand Portage
Rental Housing Project - Grand Portage, Minn.
Multifamily Rental Housing
Employer Role: Cash Contribution and Infrastructure;
Owner and Developer of Housing for Employees
The Grand Portage Tribal Council, owner of the Grand Portage Casino and Lodge, employs over 280 people on the reservation. Many employees are either living off the reservation in dilapidated trailers or in the casino lodge because they are unable to find decent and affordable permanent housing. In response to the housing shortage, the Tribal Council built six duplexes and an eight-unit apartment building to house its employees. The Council also provided a cash contribution of over $419,000 to the project, provided the infrastructure to the site, and owns and operates the units. GMHF provided a $195,000 deferred loan to the project.
Pelican Rapids Townhomes
- Pelican Rapids, Minn.
Multifamily Rental Housing
Employer Role: Purchase of Low-Income Housing Tax Credits
Employers in Pelican Rapids and surrounding communities have found it difficult to hire and keep workers largely because employees lack decent, affordable housing opportunities near their jobs. In response, a local employer took an interest in making a new 40-unit townhome development in Pelican Rapids possible. The employer purchased the development’s allocation of Federal Low Income Housing Tax Credits for $.79 each, generating over $1.5 million in equity for the project. Developed at a time when the market price of tax credits was $.62, the premium price paid by the employer raised an additional $400,000 for the project. GMHF filled the remaining gap with a $270,000, 1-percent interest deferred loan.
Weerts Company Housing
- Winnebago, Minn.
Multifamily Rental Housing
Employer Role: Owner and Developer of Housing for Employees
Winnebago, a town of 1,600 in Faribault County, is experiencing household and job growth and lacks an adequate supply of affordable housing. One local employer, Weerts Company, decided to develop new affordable rental housing in the community. A construction and landscaping company, Weerts invested $174,900 to produce eight two- and three-bedroom rental units for its employees and will own and operate the project. The city contributed by waiving hook-up and permit fees for the units. The local utilities granted $8,500 toward the overall development cost. GMHF participated with a $120,000, 0-percent interest deferred loan to the project.
Hoffman Center Apartments
- Hoffman, Minn.
Multifamily Rental Housing
Employer Role: Grant Funds from Employer Pool
In Hoffman, a town of about 700 people in Grant County, the Economic Development Authority (EDA) and several local employers converted the city’s old school building into affordable housing in 1999. The EDA launched a campaign that recruited over 11 local businesses to contribute a total of $32,000 in grant funds for the eight-unit rental housing development. GMHF matched the employer commitment with a $30,000, 0-percent interest deferred loan. Under the leadership of the local EDA, these employers took a proactive approach to providing affordable housing for Hoffman.
Tofte Homestead Development
- Tofte, Minn.
Multifamily Rental Housing
Employer Role: Cash Contribution;
Owner and Developer of Housing for Employees
The Temperance Company, an experienced resort
housing developer and owner of the Bluefin Bay Resort in Tofte, is developing
17 units of rental housing in the rapidly growing North Shore region
of Lake Superior.
While booming tourism has created economic prosperity in the area, it
has become difficult for service industry workers to find affordable
housing. In the project’s first phase, the company contributed
$178,000 toward the development of seven units. GMHF provided a $75,000,
0-percent interest deferred loan.