In Minnesota, children and adults 24 and younger are the most likely population to be homeless, according to the 2015 Minnesota Housing Study, a statewide study on homelessness. This includes children with their parents (35 percent) and minors and young adults on their own (16 percent).
Saint Paul-based Beacon Interfaith Housing Collaborative is working to solve this crisis. It is developing an affordable, supportive housing developing in the prosperous Minneapolis suburb of Edina, with a target population for suburban young adults ages 18 to 21 who are homeless.
The property, 66 West, is taking over a former TCF Bank building. Beacon will repurpose the existing 18,000-square-foot building and build a 14,000-square-foot addition. The development will include 39 studio apartments with supportive services onsite. Rent will be $675 per month; with tenants paying no more than 30 percent of the area median income (AMI) on rent as all units receive project-based Section 8 vouchers. The property will also include a community area on the first floor with a computer room, fitness room and common room with a television as well as supportive services offices.
As the syndicator, Minnesota Equity Fund placed $3.3 million in 4 percent low-income housing tax credit (LIHTC) equity into a multi-investor fund operated by Cinnaire.
“The 66 West development hit on all aspects,” said Warren Hanson, president and CEO at Minnesota Equity Fund. “We have a priority for supportive housing for the homeless and particularly for homeless youth and children.”
Read the full article from the Novogradac Journal of Tax Credits.
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