Fannie Mae is providing $14 million in low-income housing tax credit (LIHTC) equity to facilitate the development of a 110-unit development for Native Americans and others in Minneapolis.
The investment will assist the Red Lake Band of Chippewa Indians to develop Mino-bimaadiziwin, which will provided affordable housing for residents earning 30%, 50%, and 60% of the area median income. Fannie Mae is investing in the project through Raymond James Tax Credit Funds.
“Our LIHTC financing of Mino-bimaadiziwin Apartments helps support much-needed housing and ancillary services for Native Americans and other members of the Minneapolis community near public transit options that enable them to commute to their places of employment,” said Dana Brown, vice president, LIHTC investments, at Fannie Mae. “LIHTC enables affordable rental housing, and we are excited to work with our partners to address our country’s pressing housing challenges. Projects like Mino-bimaadiziwin foster a healthier and more stable living environment for individuals and families while also creating a more sustainable neighborhood for all members of the community.”
The $38.6 million development will feature studio, one-, two-, and three-bedroom units. Twenty-four of the units will serve as permanent housing for the metro area’s chronically homeless.
Located in South Minneapolis, Mino-bimaadiziwin will include a playground, a day care, a wellness center, and the Red Lake Nation Urban Embassy community center. Additionally, residents will have access to on-site health care and educational services.
The Red Lake Band of Chippewa Indians will provide a Housing Support, formerly known as Group Residential Housing, rental subsidy in partnership with the Minnesota Department of Human Services. Developers have broken ground on the project and expect to open it to residents by fall 2020.
In November 2017, the Federal Housing Finance Agency approved Fannie Mae’s re-entry into the LIHTC market as an equity investor.