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.
Mission Alignment
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.
Partnerships
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!
