The NOAH Impact Fund thanks its investors for making this initial investment possible.
Today – Oct. 31, 2017 – Aeon, the NOAH Impact Fund of Greater Minnesota Housing Fund (GMHF), and Enterprise Community Investment, Inc. completed the purchase of 768 apartment homes across 10 properties in Bloomington, Brooklyn Center, New Hope, and St. Paul. Other key partners in the project include Bellwether Enterprise Real Estate Capital, LLC, BMO Harris Bank, the Bloomington Housing and Redevelopment Authority and the St. Paul Housing and Redevelopment Authority. This acquisition will preserve all 768 homes as affordable for Minnesota families.
NOAH Impact Fund and the Aeon transaction
In June 2017, Greater Minnesota Housing Fund launched the NOAH Impact Fund to finance the acquisition and preservation of naturally affordable rental housing to preserve affordability for the long term. Today’s acquisition represents the first transaction completed by the NOAH Impact Fund.
Since 2000, the number of Minnesotans considered cost-burdened by housing—paying more than 30 percent of their income for housing—has increased 69 percent. Nationally, nearly one-third of all households are cost-burdened. This situation forces lower- and middle-income residents to choose between rent or groceries, medical bills and child care expenses.
Affordable housing organizations have looked to preservation of NOAH properties to stem the tide of rising rents. NOAH—naturally occurring affordable housing—can play a crucial role in relieving cost burdens for families and individuals across the state.
Investing partners in the NOAH Impact Fund
The NOAH Impact Fund is a public-private partnership involving the following investors: Bremer Bank, Sunrise Banks, Western Bank – A Division of American National Bank, Minnesota Housing Finance Agency, Hennepin County, The McKnight Foundation, and Otto Bremer Trust, each of which made impact investments to support the fund.
Freddie Mac (OTCQB: FMCC) is making up to $100 million in debt available in first mortgage financing as a complement to the equity financing to be provided by the NOAH Impact Fund. Freddie Mac Multifamily is one of the nation’s largest investors in affordable rental housing.