Fannie Mae announced Wednesday that it will invest $14 million for a Low-Income Housing Tax Credit as it facilitates the development of a 110-unit multifamily residence.
Back in 2017, mortgage giants Fannie Mae and Freddie Mac announced they were re-entering the LIHTC market, the federal program which encourages investment of equity into affordable rental housing.
Freddie Mac explained at the time that under the program, qualified properties are allocated federal tax credits and investors are able to invest in those properties to take advantage of those tax credits.
The new residence, Mino-bimaadiziwin Apartments, will be located in Minneapolis, will house Native Americans and other low-income residents in the community and is being developed by the Red Lake Band of Chippewa Indians.
Fannie Mae will invest in the project through Raymond James Tax Credit Funds, a Fannie Mae LIHTC fund partner.
“Our LIHTC financing of Mino-bimaadiziwin Apartments helps support much-needed housing and ancillary services for Native Americans and other members of the Minneapolis community near public transit options that enable them to commute to their places of employment,” said Dana Brown, Fannie Mae vice president of LIHTC investments.
“LIHTC enables affordable rental housing, and we are excited to work with our partners to address our country’s pressing housing challenges,” Brown said. “Projects like Mino-bimaadiziwin foster a healthier and more stable living environment for individuals and families while also creating a more sustainable neighborhood for all members of the community.”
The apartments will offer studios, one-, two- and three-bedroom units for residents that earn 30%, 50% and 60% of the area median income. And 24 of the units will serve as permanent housing for the metro’s chronically homeless.
The new development will include a playground, daycare facility, wellness center, and the Red Lake Nation Urban Embassy community center. Residents will also have access to on-site healthcare and educational services.
The Red Lake Band of Chippewa Indians will provide a Housing Support/GRH rental subsidy in partnership with Minnesota Department of Human Services. The project will cost $38.6 million. Developers have broken ground on the building project and expect to open it to residents by fall 2020.