Author: resi

MINNEAPOLIS – Aeon, a nonprofit developer, owner, and manager of affordable homes, announced the grand opening of 172 new affordable homes at Blooming Meadows North in Bloomington. The $54.3 million development is adjacent to the existing Blooming Meadows South property at 1930 E. 86^th St.

The new buildings include three- and four-bedroom homes to serve larger families. Three quarters of the new apartments are affordable at or below 60% of the area median income, and one quarter are affordable at 70% of the area median income. Funds generated by the new development supported improvements to the Blooming Meadows South site.

The key financial partners in the Blooming Meadows North development are BMO Harris, Enterprise, Greystone, the State of Minnesota, and the City of Bloomington. UrbanWorks Architecture is the project architect. Frana Companies is the project contractor. Touchstone Mental Health is the service provider.

In its continuing effort to preserve affordable homes in the Twin Cities, Aeon purchased Blooming Meadows South in December 2019 with support from the City of Bloomington, the Housing and Redevelopment Authority of the City of Bloomington, the National Equity Fund and Morgan Stanley. Twin Cities Local Initiatives Support Corporation also provided leadership and funding commitments that are supporting improvements at Blooming Meadows South.

The 306 homes at Blooming Meadows South serve mixed-income residents, with more than half of the units affordable at or below 60 percent of the area median income and the remaining units affordable at or below 80 percent of the area median income. The Blooming Meadows complex sits on a nearly 18 acres site and features a playground, outdoor pool, a dog run, picnic area, as well as a fitness center and community room in each of the properties.

“We are thrilled to welcome more than 800 residents into the Aeon family at Blooming Meadows North, and we want to extend our gratitude to the city of Bloomington and our many valued partners that helped make these new homes possible,” said Alan Arthur, President and CEO of Aeon. “We can do more than just preserve affordable housing in the Twin Cities. With the commitment of public and private partners we can grow the supply to keep residents in their homes and children in their schools. This development is an excellent example of the best of our community coming together to provide a home for the families that need one.”

“This would not have been possible without our partnership with Aeon or before we established our $15-million affordable housing trust fund and the opportunity housing ordinance,” Mayor Tim Busse said. “We are glad to see the City’s commitment to affordable housing result in a tangible addition to our community so quickly.”

Aeon has developed and preserved more than 5,800 affordable apartment homes since its founding with a goal to keep rents affordable in the Twin Cities. Even so, there remains a vast shortage of affordable housing in the metro area, especially for larger families. Aeon’s original purchase and now expansion of Blooming Meadows helps provide needed affordable homes to families in our community.

Alan Arthur, president and CEO of Aeon — a nonprofit developer, owner and manager of affordable housing in the Twin Cities — announced today he is transitioning out of his role after more than three decades as the organization’s leader. Arthur will work closely with the Board and leadership team to guide Aeon through a thoughtful transition.

“Leading the amazing team at Aeon has been the privilege of my life. As the organization finalizes its strategic plan to guide its work for the next ten years, this is a timely moment to hand the reins to a new leader,” said Arthur. “I am confident in the team at Aeon and am eager to see our work carry on through their efforts. Aeon will continue to be a bold voice in the fight for affordable homes in Minnesota.”

Arthur has served as president and chief executive officer since 1988, assuming the leadership position just two years after Aeon’s founding. In recent years, and guided by the 2017-2022 strategic plan, Aeon successfully brought $100 million in new and innovative funding to create and save more than 3,000 affordable homes. Today the organization serves 15,000 people each year at more than 5,600 Aeon apartment homes.

“We are deeply grateful to Alan for his leadership and steadfast commitment to Aeon and its mission,” said Tami Diehm, president of Winthrop & Weinstine, who served as Aeon board chair during fiscal 2021. “He’s made a tremendous difference for our community, most of all for the tens of thousands of people that have called Aeon their home during his tenure.”

Martha Swanson, who became Aeon board chair effective May 26, 2021, said, “Aeon has a strong vision and Leadership Team that will allow us to continue to boldly create and preserve affordable homes.” Swanson is Director, Enrollment Management, for Minneapolis Public Schools.

Swanson and Diehm added that beyond his knowledge and vision, Arthur’s natural warmth and genuine care for Aeon residents and staff defined him as a leader. Under his direction, Aeon has ensured that those impacted by the shortage of affordable homes help drive the direction of the organization. Aeon’s board reserves seats for Aeon residents and other low-income community members.

“I’m going to miss Alan. I think lots of us will.” said Rick Purcell, an Aeon resident and board member. “For someone with so many years of experience and such great influence, I always noticed how he treated people. Whether someone was in a suit and in charge or cleaning the bathrooms, Alan treated them with respect and is always just himself. That says a lot about his character.”

Arthur led Aeon to innovate in the face of an ever-increasing need for more affordable homes. Under his leadership, Aeon opened the first housing in the country available for youth who were experiencing homelessness, developed the first multifamily affordable LEED Platinum-certified property in the upper Midwest, and oversaw eight historic preservation projects that are now on the National Register of Historic Places. In recent years, Aeon has been a leader in saving naturally occurring affordable housing (NOAH) properties. This work kept thousands of low wage earning families in their homes.

In addition to Arthur’s leadership at Aeon, he leads trainings nationally on affordable housing development, financing and organizational governance. He has also served on numerous local and national housing boards.

Alan has received the MICAH Community Hero Award, The (Real) Power 50 Award from Minnesota Business, the AIA Minnesota Collaborative Achievement Award, the Finance & Commerce Innovator of the Year Award, the national Mike Sviridoff Leadership Award for community development leadership from Local Initiatives Support Corporation, he was named one of Twin Cities Business’ 100 People to Know, and was inducted into the Minnesota Real Estate Hall of Fame by the University of St. Thomas Opus College of Business in 2019.

To lead the search for its next leader, the Aeon Board of Directors has engaged the highly-regarded Minneapolis search firm Cincinnatus, which specializes in the nonprofit sector. Arthur will remain in his position through the end of the year, leading the transition planning during the search process.

MINNEAPOLIS – Aeon, a nonprofit developer, owner and manager of affordable homes, has purchased Cobblestone Court Apartments in Maplewood. The purchase will keep all 74 homes affordable at or below 60 percent of the area median income.

”Preserving affordable homes is more economical and faster than building new affordable homes,” said Sarah Harris, Executive Vice President of Strategy, Partnerships and Production at Aeon. “Having a home is core to our community’s health and stability now more than ever. We are pleased to be helping 74 families remain in homes they can afford.”

The equity for the purchase was provided by a Community Development Corporation created by Sunrise Banks earlier this year. Sunrise Banks, together with the Minneapolis Foundation, the Saint Paul & Minnesota Foundation, and Frey Foundation, pooled funds to assist Aeon in preserving affordable homes. Other key financial support for the acquisition was provided by the City of Maplewood, Ramsey County, Northmarq, and Freddie Mac.

“The need for affordable housing continues to grow, especially given the economic hardship COVID-19 has caused for so many families in the Twin Cities and beyond,” said Sunrise Banks CEO David Reiling. “Sunrise is extremely proud to be part of this project and excited to see Cobblestone Court Apartments purchased and kept at an affordable rate for local residents.”

Cobblestone Court and properties like it are known as naturally occurring affordable homes (NOAH). Unless acquired intentionally by organizations like Aeon, NOAH properties are at risk of acquisition by national investment funds interested in increased rents that result in hundreds of displaced residents. Preserving existing affordable homes benefits communities by keeping residents in their homes and children in their schools. It also helps ensure that aging properties can be renovated and remain long-term assets in their communities.

Aeon has acquired more than 3,000 older apartment homes since 2017 to keep rents affordable. Even so, there remains a vast shortage of affordable housing in the Twin Cities area.

Richfield, Minn. – Aeon, a nonprofit developer and operator in the Twin Cities, The Community Development Trust (“CDT”), a national investor in affordable housing, and Minnesota Housing announced today the $42.5 million refinancing of Seasons Park Apartments.

The 422-unit property is in Richfield, a few miles from the Mall of America and the Minneapolis-St. Paul International Airport. The new plan will help preserve long-term affordability for more than 1,200 residents at a time when developers are increasingly buying these properties to convert them into market-rate housing.

“Preservation is a critical component to meet Minnesota’s need for homes that are affordable,” said James Lehnhoff, Assistant Commissioner of Multifamily at Minnesota Housing.

“Minnesota Housing is pleased to support Seasons Park with a first mortgage and flexible financing to complete capital improvements and to keep the property affordable for years to come,” Lehnhoff said.

Aeon and CDT initially partnered on the acquisition of Seasons Park in September 2017. The transaction required swift action to prevent the acquisition of the property by a market-rate investor and the potential displacement of hundreds of families. CDT and Aeon assumed the existing financing placed on the property by the prior owner, with the understanding that, to provide quality, affordable homes for the long term, Seasons Park needed an infusion of capital.

Now, after two years of exhaustive work with the state housing agency, the team has closed on a $42.5 million refinancing plan from Minnesota Housing. The financing consists of a 35-year first mortgage of $34.5 million from the Low to Moderate Income Rental program and $8 million in subordinate financing from the agency’s Flexible Financing for Capital Costs program.

Today’s announcement was hailed by long-time Seasons Park residents for providing them with the peace of mind that they can continue to afford to remain in the place they’ve called home for the foreseeable future.

“Seasons Park has been my home for over 12 years, and I am so excited and happy to see the new improvements happening in my building and the community,” said Patricia Nava, who has resided at Seasons Park since July 2008.

“I appreciate the great service provided by the new staff and all the efforts that are being made to maintain the community,” Nava said.

The closing of the Minnesota Housing financing will help Aeon provide long-term, quality affordable homes for 422 families earning 60% or less of the area median income. Before CDT and Aeon’s acquisition of the property, it was at risk of following the trend of market-rate “upscaling.” Market-rate investors have been purchasing aging properties, making modest improvements and increasing rents. This practice has displaced thousands of low-income Twin Cities residents from their homes.

Seasons Park residents are now protected from significant rent increases. The property will remain an affordable home for 1,200 residents in Richfield for years to come.

Improvements at the property began in August and will continue for three years. Work will include new roofs and landscaping, updates in laundry rooms and apartments (before new residents move in), and an updated playground area for the hundreds of children that call Seasons Park home.

“CDT is proud that our partnership with Aeon was able to reach this great result for the residents of Seasons Park,” said Brian Dowling, Chief Investment Officer at CDT. “Minnesota Housing has been a great partner throughout the process and we are very pleased to obtain long-term financing that will provide financial stability for the property and ensure peace of mind for the residents that Seasons Park will remain affordable for the long-term.”

“We are deeply grateful for the partnership of Minnesota Housing and CDT,” said Aeon President & CEO Alan Arthur. “This investment in Seasons Park is an important step to ensure this property not only provides affordable housing, but 422 quality homes in Richfield.”

Richfield Mayor Maria Regan Gonzalez praises Aeon’s persistence in finding resources to make physical improvements to the apartment community, which had years of deferred maintenance to address.

“The City values Aeon’s willingness to partner in helping to preserve and improve the Seasons Park community for our residents,” Gonzalez said. “The families who live here, and the entire Richfield community, will benefit greatly for having a safe, affordable and quality place to live.”

MINNEAPOLIS – Aeon, a nonprofit developer, owner, and manager of affordable homes, is pleased to announce the organization has secured $54.4 million to finance the expansion of Village Club Apartments in Bloomington.

The money will be used to construct 172 new apartments on land adjacent to the existing Village Club apartment complex at 1930 E. 86th St. The new buildings will include three- and four-bedroom homes to serve larger families. Funds generated by the development will also be used to renovate the existing Village Club homes. Construction will start next month.

In its continuing efforts to preserve affordable housing in the Twin Cities, Aeon purchased the Village Club Apartments in 2019 with financing assistance from the City of Bloomington and the National Equity Fund.

The 306 existing homes serve mixed-income residents, with more than half of the units affordable at or below 60 percent of the area median income and the remaining units affordable at or below 80 percent of the area median income. Two thirds of the new units will be affordable at or below 60% of the area median income, and one third will be affordable at or below 80% of the area median income. The existing and to-be-constructed buildings are on an almost 18-acre site that features an indoor and outdoor pool, a racquetball court, a movie room and updated community space.

Aeon has developed and preserved 5,580 affordable apartment homes since its founding with a goal to keep rent affordable in the Twin Cities. Even so, there remains a shortage of affordable housing in the metro area, especially for families. Aeon’s original purchase and now expansion of Village Club helps provide needed affordable homes to families in our community.

“We are thrilled to announce the expansion of the Village Club Apartments and want to extend our gratitude to the city of Bloomington and our many valued partners that helped make these new homes possible,” said Alan Arthur, President and CEO of Aeon. “We can do more than just preserve affordable housing in the Twin Cities. With the commitment of public and private partners we can grow the supply to keep residents in their homes and children in their schools. This project is an excellent example of the best of our community coming together to provide a home for the families that need one.”

The key financial partners in the expansion project are BMO Harris, Enterprise, Greystone, the State of Minnesota, and the City of Bloomington. UrbanWorks Architecture of Minneapolis is the project architect. Frana Companies, Inc. of Hopkins is the project contractor. Touchstone Mental Health of Minneapolis is the service provider for the new homes at Village Club.

“This would not have been possible without our partnership with Aeon or before we established our $15-million affordable housing trust fund and the opportunity housing ordinance,” Mayor Tim Busse said. “We are glad to see the City’s commitment to affordable housing result in a tangible addition to our community so quickly.”

Aeon’s board of directors will welcome two new members at its meeting on May 27, 2020: Matt Plec and Dan Reed. With the ongoing impacts of coronavirus, Aeon understands the value that new perspectives bring to the organization. The presence of affordable housing is crucial to supporting the community through this crisis. Aeon estimates a loss in rent revenue between 20-40% through the end of the year, which requires great commitment from the community in order to keep low income residents in their homes. The addition of Plec and Reed will offer new perspectives and experiences during this important time.

Matt Plec

Matt Plec is a Vice President of Commercial Lending and has been with Great Southern Bank for 7 years. His role at the organization is financing national real estate development projects.

Along with bringing 14 years of banking experience to Aeon, Plec has been involved in several real estate legislative committees. Plec is currently the Vice Chair of the City of Plymouth Housing and Redevelopment Authority Board of Commissioners and additionally serves on the Community Matters Board of MN for Great Southern Bank. His most recent philanthropic campaign in 2019 raised funds for the Leukemia and Lymphoma Society Minnesota chapter.

Plec’s interest in affordable housing came from his ongoing work in the real estate industry, along with his involvement in the funding of projects. He has been involved in affordable housing efforts throughout his career and plan to provide a financing perspective to help further Aeon’s mission.

Plec holds a bachelor’s degree in elective studies with an emphasis on finance and business from St. Cloud State University.

Dan Reed

Dan Reed is a Vice President and General Manager of Lending Solutions at Ameriprise Financial since 2018. He brings over 25 years of leadership and experience in financial services, including banking, lending, insurance, and investments.

Reed’s interest in affordable housing stems from his experience at a Federal Savings Bank to support the housing needs of the community. Aside from banking expertise, Reed brings knowledge on the development of financing programs to meet the needs of low- and moderate-income borrowers and homeowners. He has served on various board committees and sub-committees over the past 18 years across four different financial institutions.

Reed holds a BBA in Business Finance from the University of Wisconsin. He completed graduate coursework in taxation and management of technology, leadership training at the Wharton School, and additional industry training through the BAI Graduate School of Bank Operations and Technology, the CBA Graduate School of Retail Bank Management, and the Risk Management Association.

MINNEAPOLIS – Aeon, a nonprofit developer, owner, and manager of affordable homes, is proud to announce the organization is the recipient of low-income housing tax credits from the Minnesota Housing Finance Agency. The funds will support the development of an affordable housing project in Edina and provide 70 homes to families.

The $327,722 awarded in tax credits will support the development of The Sound on 76^th, a property located one block off France Avenue near Southdale Center in the heart of Edina. The majority of the homes will be two and three-bedroom. There will also be eight apartments designated for people leaving homelessness.

The Sound on 76^th is near some of the best schools in Minnesota, job opportunities, shopping, parks, recreation and public transportation.

Aeon is partnering with the City of Edina, UrbanWorks, Kimley-Horn, Flannery Construction, The Richard M. Schulze Family Foundation, Haven Housing, Hennepin County, U.S. Bancorp Community Development Corporation, the Metropolitan Council and Minnesota Housing and others on the approximately $23 million development. Aeon hopes to break ground in late summer 2020.

“We are very grateful to receive low-income housing tax credit for this important project,” said Alan Arthur, Aeon’s President and CEO. “The Twin Cities is losing affordable homes faster than we can build new ones. We desperately need more affordable housing for families in the suburbs of the Twin Cities and The Sound on 76^th is a step in the right direction. To provide all Minnesotans a home will require the financial commitment of many public and private sources. We want to thank the Minnesota Housing Finance Agency, and all of our partners, for their support.”

The Minnesota Housing Finance Agency’s Low-Income Housing Tax Credit (LIHTC) Program is a financing program for qualified residential rental properties. The LIHTC program offers investors a 10-year reduction in tax liability in exchange for capital to build eligible affordable rental housing units in new construction, rehabilitation, or acquisition with rehabilitation.

As renters are unable to pay rent, landlords are unable to pay mortgages. The need for rental aid is crucial. Aeon is working with residents on a case-by-case basis to provide support.