New financing preserves 582 affordable apartment homes in Minneapolis
Financing a $23.1 million renovation project of affordable apartment homes is no small feat. Nearly four years of planning and negotiations, eight enormous boxes of closing documents, unexpected changes in interest rates, and very long hours for staff members were all part of the process to begin renovation on our Minneapolis Portfolio Preservation Project.
Numbers, dollar signs, and multiple vendors and partners may come to mind when you think of a major renovation project that spans 10 buildings – but the lives of hundreds of residents were always at the forefront for Aeon. Many of these Portfolio Preservation buildings were some of the first Aeon built – or bought and renovated – to replace the affordable housing demolished during construction of the Minneapolis Convention Center almost 30 years ago.
This new financing means we can preserve 582 units of affordable housing across some of our oldest Minneapolis properties – affordable units that are critical to many people working in the service sector. This includes health care workers, people who clean hotel rooms and offices, or those who drive buses and taxis. These individuals are the engine of our economy and community.
The average household income for Aeon residents is $15,000 per year – we’re committed to providing homes for those with the greatest need, so renovating our buildings is critical to allowing residents to remain in stable and sustainable housing.
Nine of the buildings we’ll renovate are located in Minneapolis’ Elliot Park neighborhood, and the remaining property, The Maryland, is located in the nearby Loring Park neighborhood. The renovations focus on increasing energy efficiency, enhancing security, and repairing or replacing mechanical systems. This includes replacing windows, heating systems, and plumbing fixtures; repairing roofs; and updating kitchens, bathrooms, and flooring. Aeon is dedicated to the long-term sustainability of these apartment homes and buildings – the renovations will help the buildings last longer and will contribute to significantly lower operations costs over the decades ahead. Additionally, the renovations will incorporate Aeon’s standards for sustainability and historically sensitive design.
Aeon promised to preserve these affordable homes over the long term when it bought or built the 10 buildings to replace the affordable housing units lost during the Convention Center construction. With renovation of these 582 affordable apartment homes now underway, we’re keeping our word. As the community shifts and changes over the years – and new stadiums and buildings are built – we remain committed to helping Aeon residents create a safe and sustainable place to call home. It is critical to preserve affordable homes and reinvest in our communities – and the people who need homes the most.
Gina Ciganik, Vice President of Housing Development
Poverty, Homelessness, and Home