Securing Funding Sources Case Study:
Park Avenue Apartments & Center for Changing Lives
Ponterre Group is very proud of the integral role it played in the planning, financing and completion of Lutheran Social Service of Minnesota’s Park Avenue Apartments and the adjacent Center for Changing Lives. This unique demonstration project included demolition of existing structures and the construction of two semi-detached buildings. The Center for Changing Lives is a central human/social service center offering mental health counseling, wellness, housing, financial, adoption, refugee and employment programs. The Center is a LEED-certified building. The housing portion, Park Avenue Apartments, is comprised of 48 affordable units of various sizes including 13 units designated for long-term homeless or near homeless households.
Park Avenue Apartments had a development budget of $11.3M; the total development cost for both buildings was $27M.
Ponterre Group took the lead in securing the following financing for Park Avenue Apartments:
HTC Sources
- Tax Credit Syndication Proceeds $7,003,700.00
- City of Minneapolis AHTF Loan $500,000.00
- Hennepin County AHIF Loan $400,000.00
- GP Loan (Enterprise Funds) $29,000.00
- GP Loan (Hennepin County AHIF) $600,000.00
- GP Capital (IBR 1K / Family Housing Fund MN Green Program 85K) $86,000.00
- GP Land Contribution $152,000.00
TOTAL HTC Sources $8,770,700.00
GO Bond Sources
- State Planning Grant $350,000.00
- MHFA Publicly Owned Housing Program Bonds $2,052,656.00
- MHFA Ending Long Term Homelessness Initiative Fund $140,077.00
TOTAL GO Bond Sources $2,542,733.00
TOTAL Development Sources $11,313,433.00
Ponterre Group consultants worked closely with the development team members managing the Center for Changing Lives capital campaign and financing to maximize efficiencies across both projects.
