Nonprofit Aeon and The Community Development Trust (CDT) have partnered to preserve affordable housing for over 400 families, including approximately 200 preschool-age and 250 school-age children, in Richfield, Minn.
The partnership acquired the 422-unit Seasons Park Apartments for $36 million and will spend an estimated $4 million on renovations. This is the largest acquisition in the 31-year history of Minneapolis-based Aeon and the second-largest investment in CDT’s 18-year history.
“The sale of the Seasons Park Apartments to Aeon and CDT is a tremendous achievement,” said Steven Unowsky, superintendent of Richfield Public Schools. “We feared the sale of this property to another potential buyer would have forced the displacement of virtually all the current residents, including approximately 250 students who attend our schools. Their departure would have been devastating to the Richfield Public Schools system.”
Although the Twin Cities is undergoing an apartment construction boom, only 10% of the new units will be available for low-income renters, according to a new report from the Minnesota Housing Partnership. To save low-income families from potential displacement, Aeon aggressively pursued the acquisition.
“Our goal was to stem the tide of affordable housing properties being gobbled up and converted into high-rent apartments out of reach for the average family,” said Alan Arthur, president and CEO of Aeon. “This purchase with CDT serves as a model for how other communities in Minnesota and across the country can work together to make housing more affordable.”
In addition to Aeon and CDT’s participation, the development received a Fannie Mae assumption and $150,000 from the city of Richfield Housing and Redevelopment Authority. Hennepin County, Minnesota Housing Finance Agency, and the Federal Home Loan Bank of Des Moines are considering requests for additional funding to assist with improvements to the property.
Renovations for the community include improvements to the common areas, side grading, and roofing as well as security enhancements.