U.S. Bank will invest key financing to help Project for Pride in Living (PPL) build a 108-unit affordable housing development for families and formerly homeless individuals in St. Paul, Minn.
U.S. Bank’s Community Lending Division is providing $15 million in construction loans, and U.S. Bancorp Community Development Corp. (USBCDC), the community development subsidiary of U.S. Bank, is investing $15.8 million in equity raised from federal low-income housing tax credits in the $28.2 million project.
Located next to a light-rail stop, Hamline Station Apartments will feature 15 studios, 36 one-bedroom, 44 two-bedroom units and 13 three-bedroom units in two four-story buildings. Fourteen units are designated as permanent, supportive housing for formerly homeless or disabled persons. PPL and community partners will provide onsite services for residents.
“We invested in Hamline Station because it will spark other new development in the Midway neighborhood,” said Vihar Sheth, senior vice president of USBCDC, in a statement. “We are also committed to providing affordable housing that helps alleviate homelessness and serves those struggling with health issues.”
The apartments will be leased to individuals and families with incomes between 30% and 60% of the area median income. Rent will range from approximately $550 to $1,190 a month.
“PPL’s mission is to provide affordable housing for low-income families and to help strengthen neighborhoods,” said Paul Williams, president and CEO of PPL. “We are excited to have U.S. Bank as a partner to construct Hamline Station. This is a powerful opportunity to provide low-income families and individuals high-quality housing with a significant transit solution.”
Plans also call for shops and a restaurant that will provide outdoor dining in a courtyard between the two buildings.
This is USBCDC’s 61st affordable housing development in the Minneapolis metropolitan area since the division began 20 years ago. Those developments have produced 3,616 apartments from a total equity investment of $282.4 million by USBCDC.
Anderson-KM Builders LLC is the construction contractor and Elness Swenson Graham Architects is the architect. Construction is expected to be complete by January 2016.