The event ensures affordability of the property to low-income households for the next ten years! The property is located in the city of Walker, situated in a residential neighborhood about a mile south of the main street. Lakeview Terrace is an existing 18-unit project, owned and managed by DW Jones. Seventeen of the townhomes are affordable at 60% AMI, and one unit is reserved for an employee.
GMHF’s permanent loan will help preserve the affordability of 18 homes in Greater Minnesota. Lakeview Terrace is 100% income restricted, serving families with household income under 60% AMI limits. Sixteen percent (16%) of the residents are American Indian, and the remaining residents white. Eleven percent (11%) of the residents have a disability and thirty-eight (38%) of the units are headed by a single person with minor children. The new loan maintains income restrictions on the property.
Need for Affordable Rents
Lakeview Terrace has an historical occupancy rate of 99% and maintains a waiting list of 30 families. This is indicative of a strong demand for this type of housing in Walker. Average rents for two- and three-bedroom units in the Walker area are $778 and $792, respectively. The rents at Lakeview Terrace are 10% below the average rents and more than 20% below the 60% AMI limits.
Owned and managed by D.W. Jones, Lakeview Terrace was built in 1999, and funded by tax credits, Minnesota Housing Finance Agency (MHFA) and GMHF. In 1999, GMHF issued a 30-year $200,000 gap loan with 1% interest. In 2020, the original first mortgage was paid off and GMHF issued a new first mortgage to repay its gap loan and pay accrued interest Minnesota Housing’s gap loan.
Thank you to all partners and staff who participated in the closing!