Key financing has been arranged to build a 60-unit affordable and supportive housing development in St. Paul, Minnesota.
Merchants Capital announced that it has provided $18.9 million in low-income housing tax credit equity and secured a $14 million bridge loan from Merchants Bank for the project.
Under development by nonprofit Project for Pride in Living (PPL), the East 7th Street community will include 17 units for individuals earning up to 30% of the area median income (AMI) and 43 units for households earning up to 60% of the AMI.
Seven units will be set aside for people with disabilities, and seven units will be reserved as high-priority homeless housing via the Ramsey County Housing Support Program and Coordinated Entry System.
East 7th Street is also being designed to accommodate large families, including “grandfamilies,” households with grandparents raising their grandchildren.
“PPL and its partners are bringing a great multigenerational apartment building to the East Side of Saint Paul,” said Karla Henderson, president and CEO, noting that the development is coming at a time when the housing supply is tight, especially for large families.
East 7th Street will offer one- to five-bedroom apartments. Community amenities include a fitness center and wellness room, package lockers, on-site management and maintenance, bike storage, storage units, a playground, a lounge area, a conference room, and an elevator.
“Families, in particular, will be well served by the accommodating space and long-term affordability available at East 7th Street,” said Marsha Goff, executive vice president of originations at Merchants Capital. “PPL continues to enrich the Twin Cities with programs, services, and affordable homes, and we are proud to leverage Merchants’ debt and tax credit equity expertise to serve as a financing partner for this development.”
The nonprofit is a provider of affordable housing and support services in the Twin Cities. PPL owns and manages 1,762 units of affordable housing and operates programs focused on career training and retention, housing stability, and income growth. An additional 212 units will be available by the end of the year.
