Agency seeks to create affordable housing in Baxter
Central Minnesota Housing Partnership (CMHP) has applied to the Minnesota Housing Finance Agency for funding to create new affordable rental housing in Baxter.
CMHP is a private nonprofit developer serving a 16 county service area in central Minnesota. CMHP’s mission is to assist underserved communities to preserve, improve and increase the housing stock affordable for low to moderate income families and individuals. The mission includes the development of new affordable multifamily housing or apartment buildings.
The tax credit application is requesting funding to build a 34-unit townhome development to assist low-income households in Baxter. The townhomes will consist of two- and three-bedroom units. If awarded, funding will be provided through the Low Income Housing Tax Credit program. Funding provides the owner the equity needed to build the property.
If the application is successful, construction of the project, named Sprucewood Townhomes, would begin in spring 2013. The project will incorporate green building standards making it a resilient and energy efficient property. Kuepers Architecture and Construction, Inc. will act as the general contractor for the project.
The project has four units designated for long-term homeless households. These units will be set aside for families or individuals that have been experiencing homelessness. CMHP is partnering with the Women’s Center in Brainerd to act as a service provider to these households. The center will provide support services to households, starting them on the path to financial stability.
The townhomes have the goal of being affordable to low-income households. Rent amounts for the 30 non-homeless units are projected to range from $355 to $625 for a two-bedroom unit and $410 to $720 for a three-bedroom unit. Households interested in living at the property must meet income limit guidelines. For example, a family of four cannot make more than $35,520 to qualify to live at the property.
CMHP submitted the application in June of this year. Funding awards should be announced in October. CMHP is also looking to preserve a 30-unit apartment building in Walker designated for seniors. This project is very preliminary and the financing terms are still being worked out.